Where Your Paycheck Buys a House

Methodology. Home values are the Zillow Home Value Index (typical home) and rents are the Zillow Observed Rent Index, by metro, current through mid-2026. The payment is an estimated all-in monthly cost: principal and interest on a 30-year loan at 6.86% (the most recent reported average rate), plus property taxes at approximate statewide effective rates and insurance estimated at 0.5% of value a year. Down payment lowers the loan. "Cost of income" is that payment, or the rent, divided by monthly gross income; lenders generally look for housing at or under 28% to 36%. Switch "My income" to "Local median" to color each metro by its own residents' median household income (Census ACS 1-year, B19013), which shows how affordable each city is for the people who already live there. The rent-vs-buy breakeven assumes the appreciation rate you pick, 3% annual rent growth, 1% of value a year in maintenance, 2% buying costs, and 7% selling costs. These are planning estimates, not quotes, and metro averages blend many neighborhoods. Gross rent yield is annual rent divided by home value, a first-pass rental-return figure before taxes, vacancy, and expenses. Home-value appreciation is the total change in the metro's Zillow ZHVI over the trailing one and five years (not annualized); the five-year figure is front-loaded by the 2020 to 2022 surge. Analysis by Rob Thompson, Realtor, Iconic Colorado Properties.