Home Ownership Affordability Monitor

The Metro View allows the user to analyze various aspects of homeownership affordability at the metropolitan area level.

The Metro View includes tabs for Metro Affordability, Drivers, Affordability Gap, Price/Income, Share of Income, County Level, and Cost Breakdown:

• Affordability—Provides two measures of homeownership affordability within US metros by allowing users to toggle between the parameters of "Share of Median Income" and "Affordability Index."
• Drivers—Provides a decomposition of the drivers of homeownership affordability within US Metros. Affordability drivers include taxes, property insurance, mortgage rate, median sales price, and median household income.
• Affordability Gap—Provides a comparison between the actual median income over time to the qualifying income; that is, the income needed for annual homeownership cost to equal no more than 30 percent of annual income within US metros.
• Price/Income—Provides a comparison between median home prices and incomes over time.
• Share of Income—Provides the share of median income needed to own the median-priced home over time within US metros compared to the nation as a whole.
• County Level—Provides the share of median income needed to own the median-priced home over time within counties and parishes in US metros compared to the United States as a whole.
• Cost Breakdown—Provides a decomposition of the total monthly costs of homeownership within US metros, given the median sales price and mortgage rate for a given period. Components of the total monthly cost include property taxes, private mortgage insurance, property insurance, and principal and interest.

The following are the formulas used to calculate the major components of the Home Ownership Affordability Monitor:

• Total monthly cost = (P & I) + PMI ((median home price x .9) x .00558) + taxes ((county- or metro-level rate x median home price) ÷ 12) + insurance ((county- or metro-level rate x median home price) ÷ 12).
• Monthly principal and interest payment (P&I) = median home price x 0.9 x (interest rate ÷ 12) ÷ (1 – (1 ÷ (1 + interest rate ÷ 12) ^360)).
• Total annual cost = total monthly cost x 12
• Annual share of income = total annual cost ÷ median household income
• Qualified income = total monthly cost x 3.33 x 12
• Index value = (median income ÷ qualified income) x 100.

This tool relies on the following data inputs and assumptions:

For more detail, please see the definitions below.

a. Median household income: The US Census Bureau's American Community Survey (ACS) one-year estimates produce household income measures, which include the incomes of the head of household and anyone else in the household who is 15 years or older, regardless of the relationship to the head of household. The median represents the midpoint income within the distribution of incomes, meaning 50 percent of households earn more and 50 percent earn less. While the incomes are based on household estimates from the ACS, they are projected to the current month by Atlanta Fed staff using additional data series produced by the Current Population Survey and Decennial Census. There is more recent evidence, however, that suggests the single-person household comprises a higher share of overall housing activity. Because of this trend, this tool incorporates household income estimates rather than family income estimates. The distinction is important because median household incomes are typically lower than median family incomes, which has direct implications for affordability measures.

b. Median existing home sales price:The Zonda data reflect the three-month moving average of the median home price for sale observations of all single-family attached and detached properties combined for the geography and period specified. The median existing home sales price represents the midpoint price within the observed repeat sales home prices for the reporting period.

c. Mortgage interest rate:Using the Freddie Mac Primary Mortgage Market Survey and Moody's Analytics as sources, the current 30-year fixed mortgage rate is derived from a weekly survey and based on first-lien prime conventional conforming home purchase mortgages. These mortgages have a loan-to-value of 80 percent, which differs from the loan-to-value of 90 percent in HOAM.

d. Property taxes: The tax component of monthly payments is derived using the effective tax rate at the county or parish level provided by SmartAsset. Metro level tax payments are derived by using a weighted average of county taxes within the area.

e. Property insurance:The ICE McDash data reflect the estimated average annual premium of residential insurance policies per household.

f. Down payment: This tool assumes a 10 percent down payment. According to Black Knight Financial Services, the average loan-to-value on mortgages originated between 2000 and 2019 fluctuated around 90 percent.

g. Private mortgage insurance: The private mortgage insurance estimate is determined by averaging the published Federal Housing Finance Agency's guarantee fees from 2013 to 2018.

h. Note: This tool uses median payment to median income ratio of 30 percent as the affordability threshold.

HOAM metro Data: This file contains monthly affordability scores per Metro.

HOAM County Data: This file contains monthly affordability scores per county.

HOAM US Affordability Data: This file contains monthly national affordability index, monthly change in national affordability, monthly national median housing payment as a share of income, monthly estimated income that qualifies to purchase a median home vs actual median income differences, and monthly estimated income that qualifies to purchase a median home vs actual income percent difference.

August 2026

National View

Although mortgage rates rose, homeownership affordability declined only slightly in August due to more moderate growth in home prices.

• Homeownership affordability declined marginally from July to August, down by 0.6 percent, to the lowest level since July 2024.
• In August, the median-income household in the US, making $86,656 per year, needed to spend 43.9 percent of its income to own the median priced home ($406,000).
• The average 30-year fixed mortgage rate in August was 6.7 percent. This was up 20 bps from July and 70 bps from February when rates dropped to 6.0 percent, the lowest since 2022.
• The median home sales price ($406,000) declined slightly (down by 0.2 percent) in August from July. Compared to a year ago, the median price was still up by 2.7 percent.
• The total monthly cost to own the median-priced home was $3,172 in August, up 0.8 percent from July. Costs were up by 3.5 percent from a year ago and are currently the highest on record.
• To own the median-priced home, a household would have to make $126,849 annually (i.e., the qualified income) to keep monthly payments at 30 percent of income. This is 46.4 percent higher than the actual median income ($86,656). Though still wide, the current gap between the qualified income and the actual median income is below the record high of 50.7 percent in October of 2023.
• The non-principal and interest (non-P&I) component of the average monthly payment (i.e., taxes, property insurance, etc.) rose by 3.3 percent over the past year but was down slightly (0.1 percent) from July. At $822 per month, non-P&I cost was just below its previous peak reached in July and comprised 25.9 percent of the average monthly payment.
• Just over 82 percent of all metros in the US were considered unaffordable in August (i.e., the median-income household in the metro area would need to spend more than 30 percent of its annual income to afford the median-priced home).

Sixth District View

• Atlanta: Homeownership affordability in Atlanta remained unchanged from July to August. Though rates rose, the median home sales declined by 1.0 percent from July and now stands 2.7 percent below the previous peak reached in August 2024. This monthly decline in home prices was the first since January 2026. In August, the median-income household needed to spend 38.0 percent of its annual income to own the median-priced home. Meanwhile, the qualified income in Atlanta (i.e., the income needed to own the median-priced home while not spending above the 30 percent affordability threshold annually on housing) rose to $123,394, which was 24.8 percent higher than the actual median-household income of $97,496.
• Nashville: Affordability in the Nashville region dropped by 1.5 percent in August from July. Though home prices declined modestly, down by 0.1 percent, the rise in mortgages more than offset any improvement to affordability. The median home price in the region in August ($486,663) was down from a record high reached in July. A household making the median income ($92,899) needed to spend 45.4 percent of its annual income to own the median-priced home in the region. The median income in the region was 51.5 percent below the qualified income ($139,998)
• Jacksonville: Affordability was virtually flat in Jacksonville from July to August. Compared to a year ago, affordability improved by 1.4 percent. Moderation in home prices continues to provide stability in affordability in the region, despite the rise in mortgage rates. The median home price in August ($377,919) declined by 1.5 percent from July and 0.3 percent from a year ago. Currently, the median-income household needs to spend 40.5 percent of its annual income to own the median-priced home, down slightly from 40.8 percent a month ago. The qualified income in August was $115,384, which was 35.1 percent higher than the actual median income in the region ($85,392).
• Orlando: After remaining stable for several months, homeownership affordability in Orlando declined by 1.5 percent in August compared to July as home prices in the region rose slightly along with mortgage rates. The median home sales price ($419,200) in August rose by 0.2 from July but was still down by 1.6 percent from a year ago. The share of the median household income needed to own the median-priced home was 45.1 percent in August, up from 44.7 in July. The affordability gap (i.e., the spread between the actual median household income in the region and income needed to afford the median-priced home, or qualified income) was 50.4 percent in August, up from 49.1 percent in July.
• Tampa: After declining since March, homeownership affordability in Tampa stabilized in August. The median home sales price was down slightly from July (by 0.3 percent), just enough to offset the downward pressure on affordability created by rising rates. A household making the median income needed to spend 45.4 percent of annual income to own the median-priced home in August, up slightly from 45.2 percent in the prior month. Compared to just prior to the pandemic, home prices in the region have risen by 70.7 percent while the median household income only increased by 42.2 percent. Consequently, the spread between the actual median household income ($83,606) in the region and income needed to afford the median-priced home ($126,625) remains wide at 51.5 percent.
• Miami: Homeownership affordability in Miami has remained virtually flat for the past two months. The median home sales price in the region dropped by 0.7 percent in August but remained 4.4 percent higher than a year ago. Though lower prices kept affordability in the region stable, Miami remains one of the least affordable regions in the District. A household making the median income ($85,651) would need to spend 60.2 of its annual income to own the median-priced home ($530,533). The gap between the median household income in the region and income needed to afford the median-priced home ($171,773) remained 100.5 percent.
• Birmingham: After declining since February, homeownership affordability in Birmingham improved by 3.2 percent from July to August. Driving the improvement in affordability was a 3.8 percent decline in the median home sales price in August. Home prices in the region in August were 0.3 percent higher than a year ago and 53.4 higher than just before the pandemic. The median-income household in Birmingham making $80,344 annually needed to spend 31.3 percent of its income to own the median-priced home in August. Though still slightly above the 30 percent affordability threshold, this measure was one of the lowest in the District amongst major metro areas. The gap between the actual median income and the qualifying income ($85,847) was 4.4 percent, also one of the lowest in the District.
• Jackson, MS: Homeownership affordability in Jackson has improved for two consecutive months as home prices continued their downward trend. The median home sales price dropped by 2.3 percent in August after declining by 3.3 percent in July. Consequently, affordability was up by 2.6 percent. Still, a median-income household making $71,016 annually needed to spend 38.7 percent of its annual income to own the median-priced home ($295,000). The gap between the median household income in the region and income needed to afford the median-priced home ($91,504) declined to 28.8 percent in August.
• New Orleans: Affordability was flat in New Orleans from July to August as home prices in the region continued to moderate. The median home sales price dropped by 0.2 percent in August after declining by 1.7 percent in July. This decline in prices was just enough to offset the downward pressure on affordability created by rising interest rates. A household making the median income in New Orleans needed to spend 45.8 percent of its annual income to own the median-priced home, up slightly from 45.5 percent in July. Meanwhile, the affordability gap (i.e., the spread between the actual median household income in the region and income needed to afford the median-priced home, or qualified income) stood at 52.6 percent in August.