Northeast Ohio · Residential Affordability Index
Can a median-income household afford the median home?
Pick a city, village or township. The tool fills in the current 30-year mortgage rate, the area’s median household income and its median single-family sale price. Change any white box to test your own numbers.
Assumptions and calculation
Shaded rows are calculated1
2
3Payments per year12
4
5Monthly income
6Weekly income (@ 4.3 weeks/month)The model budgets one week’s gross pay per month for housing, about 23.3% of gross income.
7
8Available for principal & interest / month
9Loan that payment supportsPresent value of row 8 at the rate and term above
10
11
12Loan amount needed
13Affordability indexRow 9 ÷ row 12. 1.00 or higher means affordable.
14Price-to-income multiplier
15Affordable to half the population?
Monthly P&I on the median home
Highest price this income supports
Income needed for this price
Where the numbers come from
How to read the result: half of the area’s households earn more than the median income and half earn less. If the median-income household can carry the median-priced single-family home, the home is affordable to roughly half the households in that community. The taxes-and-insurance allowance is a single flat figure. Actual property taxes vary widely between Northeast Ohio communities, so enter your own estimate for a truer answer.
This is an educational market indicator, not a loan pre-approval or an appraisal.
Aspen Appraisal Services · Brecksville, Ohio