Home Affordability in Boston, MA
The median home price in Boston is $780,000 with a median household income of $81,744. Housing is significantly stretched relative to local incomes.
Median Home Price
$780,000
Median Income
$81,744
Price-to-Income Ratio
9.5x
Est. Affordable Home
$318,000
Property Tax Rate
1.02%
Annual Property Tax
$7,956
Sales Tax Rate
6.25%
Cost of Living Index
152
Buying a Home in Boston
Based on the 28% rule (spending no more than 28% of gross income on housing), a household earning the median income of $81,744 in Boston can afford a monthly housing payment of approximately $1,907. This translates to a home price of roughly $318,000, which is below the median home price of $780,000 — many households may need a higher income, larger down payment, or should consider more affordable neighborhoods.
Property taxes on a median-priced home in Boston would be approximately $7,956 per year ($663/month) at the effective rate of 1.02%.
Down Payment Scenarios
| Down Payment | Amount | Loan Amount | PMI Required |
|---|---|---|---|
| 3% | $23,400 | $756,600 | Yes |
| 5% | $39,000 | $741,000 | Yes |
| 10% | $78,000 | $702,000 | Yes |
| 20% | $156,000 | $624,000 | No |
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