A new Realtor.com analysis reveals 11 states where households earning the median income can buy a median-priced home without spending more than 30% of their income on housing — a threshold financial experts use to avoid becoming "house poor." The list includes Iowa, Ohio, and Indiana, with cities like Indianapolis, Kansas City, and Des Moines cited as examples.
The 30% rule serves as a benchmark to help households maintain savings after covering monthly housing costs. The findings come as persistent strains on affordability — including high mortgage rates, elevated home prices, and inflation-driven cost increases for essentials like food and gas — push many Americans beyond that limit in most other states.
Realtor.com's data shows that in the majority of US states, median-income earners cannot comfortably afford a median-priced home. The 11 affordable states are concentrated in the nation's interior, where housing markets have not seen the same price surges as coastal regions.
For buyers in these states, the analysis suggests homeownership remains more accessible despite broader economic headwinds. However, the affordability gap between interior states and coastal markets is likely to persist as long as mortgage rates and home prices stay elevated nationwide.
Critics note that the 30% rule may be too rigid, as it doesn't account for differences in non-housing costs or personal financial situations across households.