Arizona variant. This is a Arizona-specific version of the Home Affordability Calculator, using pre-defined local figures (tax rates, median home and income values, and typical regional costs). For the full formula, methodology, and FAQ, open the main Home Affordability Calculator.
How much house you can afford in Arizona hinges on the $74,568 median income, 0.51% property tax, and current rates. The 28/36 rule turns income into a realistic price ceiling.
Affordability math for Arizona
Lenders typically cap housing costs at 28% of gross income. On Arizona's $74,568 median income, that's about $1,740/month for principal, interest, taxes, and insurance.
After reserving for 0.51% property tax and insurance, the remaining payment supports a home priced near $344,093 with 20% down - compared with the $425,000 state median.
About taxes and housing in Arizona
Arizona uses a flat individual income tax of 2.5%, one of the lowest flat rates in the nation.
Arizona keeps property taxes relatively low and limits how much a primary residence's taxable value can rise each year.
Arizona's economy is driven by technology, tourism, and rapid population growth, with a warm climate that attracts retirees and remote workers.
Worked example: max price on $74,568
28% of $74,568 ÷ 12 ≈ $1,740/month. At 6.5% for 30 years with 20% down, that supports roughly $344,093 in home price before taxes and insurance reduce it further.
Quick reference
- State income tax: Flat 2.5% as of 2023
- State sales tax: 5.6% (plus 2.80% avg local)
- Median home value: $425,000
- Median household income: $74,568
- Effective property tax rate: 0.51%
- Avg auto insurance: $1,812/yr
Frequently Asked Questions
How much house can I afford in Arizona?
On the $74,568 median income, the 28% rule supports roughly $344,093 in home price at current sample rates - adjust for your real income and debts above.
What is the 28/36 rule?
Spend no more than 28% of gross income on housing and 36% on total debt. It's the standard lender affordability guideline.