10 Best Places To Buy A Home With A Household Income Of $100,000

Before deciding which locale has better schools, amenities and opportunity, home buyers will need to know whether their household income will allow them to reasonably afford to purchase a home and live there. While real estate prices and mortgage rates have increased recently, there are still affordable areas for first-time home buyers and experienced house hunters alike. Rocket Homes^SM teamed up with BestPlaces.net to find 10 best places to buy a home on a $100,000 household income.

Finding The Best Places To Buy A Home On A $100,000 Household Income

The team first calculated the highest monthly mortgage payment for a household with a $100,000 annual gross income following the general rule of thumb to spend no more than 30% of it on their monthly payment. Our methodology section explains the assumptions we used to calculate this estimated payment.

On a household income of $100,000, that maximum monthly mortgage payment would be about $2,500.

While home buyers with a $100,000 income could afford any of the best places to live on a $65,000 household income, they may want something a little more. So we looked at cities that had estimated monthly mortgage payments above $1,625 (the maximum for a $65,000 income) and under $2,500.

After filtering out all cities with an average estimated mortgage payment outside of that range, the team used the following metrics to rank the remaining metro areas as the best places to buy a new home.

• Income tax
• Sales tax
• 2021 median household income
• Unemployment rate
• Health of residents
• Climate hazard risk
  

Cities with a crime rate higher than 50% of the country were also filtered out of this study. To provide a wider range of areas, we removed any other lower ranking cities within a 100-mile radius of a higher-ranking city in the same state.

1. Tampa, Florida

• Metro population: 3,194,831
• Median home price: $390,600
• Estimated monthly mortgage payment: $2,249 

One of the many reasons Florida is a popular place to live is that it has no state income tax, meaning residents keep more of their pay and can stretch their housing budgets a little further. In Tampa, $100,000 earners may find a place to live with a mortgage just under the max monthly payment. With access to various theme parks, golf courses, nearby beaches and resort-style amenities that encourage physical activity and mental wellbeing, it’s no surprise Tampa’s health index is in the top 10% of the country.

2. Eau Claire, Wisconsin

• Metro population: 169,304
• Median home price: $272,600
• Estimated monthly mortgage payment: $1,726 

Named one of the “Coolest Small Cities in the U.S.” by Thrillist.com, Eau Claire features two large lakes within city limits and two rivers running right through the downtown, providing ample opportunity for water recreation. There’s also thriving arts and music scenes, which the city is known for. Shoppers frequenting the mall, farmers market and downtown boutiques can also enjoy a lower sales tax than 93% of the country. No matter what home buyers are looking for, Eau Claire provides the means to find it – whether it be entertainment or more significant needs like a lower cost of living, discounted health services, community support and resources for equality, advocacy and activism.

3. Green Bay, Wisconsin

• Metro population: 322,906
• Median home price: $259,200
• Estimated monthly mortgage payment: $1,669

With the lowest median home price of any other city on this list, Green Bay can be an affordable place to live for those with a household income of $100,000. It’s also one of the safest – ranking in the top 10% of the country for low crime rate. The city was also named the third-best place to live by U.S. News & World Report and one of Rocket Homes’ least-stressed cities in America. And while various publications are fans of Green Bay, its residents are known as fans of only one thing – their beloved Packers.

4. Harrisburg, Pennsylvania

• Metro population: 577,941
• Median home price: $265,300
• Estimated monthly mortgage payment: $1,665 

Despite being one of the largest metro areas in Pennsylvania and the state’s capital, Harrisburg’s cost of living is still about 12% lower than the national average, helping household incomes go a little further. That isn’t the only thing that’s sweet about living in Harrisburg. The city is also less than 20 miles from Hershey, Pennsylvania, home to one of the largest chocolate manufacturers in the world.

5. Fargo, North Dakota

• Metro population: 246,145
• Median home price: $286,600
• Estimated monthly mortgage payment: $1,735

North Dakota’s largest city isn’t just a great place to live while saving for a home. It can also be a great place to buy – especially on a $100,000 income. Those interested in finding new job opportunities may also choose the metro area for its low unemployment rate, which is in the top 1% of the country. Among the various employers in Fargo, the biggest ones include Sanford Medical Center, North Dakota State University, Essential Health and Fargo Public Schools.

6. Melbourne, Florida

• Metro population: 601,942
• Median home price: $366,000
• Estimated monthly mortgage payment: $2,084

Melbourne is located in the Sunshine State, which means its residents won’t have to pay income taxes. It’s also positioned along Florida’s Space Coast, home to the Kennedy Space Center and Cape Canaveral Space Force Station. It is from there that all American orbital space missions launch. For those looking to avoid crowds, the area features quieter beaches. For those looking to enjoy busier attractions, Orlando theme parks are less than 90 minutes away.

7. Grand Rapids, Michigan

• Metro population: 1,074,223
• Median home price: $306,600
• Estimated monthly mortgage payment: $1,879

Grand Rapids has a better health index than 90% of the country. This can be attributed, in part, to its great school system, opportunities to engage in culture and more than 75 parks to exercise in and interact with nature. These are also factors that make it the best city to raise a family.

8. Ann Arbor, Michigan

• Metro population: 367,601
• Median home price: $380,800
• Estimated monthly mortgage payment: $2,442

The university town with a big-city feel and small-town charm welcomes all walks of life – from artists and techies to foodies, sports fanatics and even four-legged friends. All residents can feel optimistic about putting down roots in the midwestern city as the risk of experiencing a devastating natural disaster is lower than almost 95% of the rest of the country. Ann Arbor was even named the #1 best place to live in Michigan and the #1 best place to live for quality of life by U.S. News & World Report.

9. Minneapolis, Minnesota

• Metro population: 3,654,908
• Median home price: $369,800
• Estimated monthly mortgage payment: $2,232

Known as “The City By Nature,” Minneapolis features 22 lakes, the Mississippi River and so many parks that residents are never more than 6 blocks away from a natural landscape. Despite all of its natural surroundings, Minneapolis still offers a bustling city vibe with trendy, tax-free shopping, global dining, a diverse music scene and vibrant nightlife. In warmer seasons, residents can traverse 200 miles of recreational trails. In winter weather, they can explore the city without going outdoors, thanks to the Minneapolis Skyway System. At 9.5 miles long, it’s the world’s largest, enclosed, second-story bridge system and connects 80 city blocks that include retail, restaurant, business and residential spaces.

10. Bismarck, North Dakota

• Metro population: 133,179
• Median home price: $333,200
• Estimated monthly mortgage payment: $1,940

From Native American sites and historic towns to art trails, breweries, and a community calendar stacked with events, Bismarck isn’t short of things for residents to see and do. New and old inhabitants can become explorers of the area by following the Lewis and Clark Trail to find recreation and adventure. Meanwhile, those exploring their career options may find opportunity in North Dakota’s capital, which sits in the top 1% of the country for low unemployment.

Methodology: Finding The Best Cities To Buy A Home On $100,000 A Year

In this study, we present the best places to live which are affordable with an annual household income of $100,000.

The places analyzed in our study are the 383 major metropolitan areas in America, which are home to over 80% of all U.S. residents.

The team at BestPlaces.net collected and analyzed data in key measures which give insights into the home affordability for each metro, as well as livability indicators such as health, economy, taxes and crime.  We chose metrics that are as current as possible – as of January 2023 – and as detailed as possible to provide the most relevant insight.

Each data metric is normalized and transformed to a common range of 0-100 points for scoring and comparison. Weights are applied to each metric which reflects its importance in the study.  The weighted scores for each metric are summed to create the overall “best places to live with a household income of $100,000” score for each place. The final scores are sorted to produce the final rankings.

Other statistics and sources were used in this study but not weighted for ranking. These include:

We used the following equation to understand the maximum monthly mortgage payment at 30% of a $100,000 annual household income: (100,000/12) x 0.3

To calculate the estimated monthly mortgage payment for each city, we used the median home price for each city and based the estimate on a fixed-rate, 30-year mortgage loan with a 6.5% interest rate and 20% down payment. The average property tax for each place was used in the calculation as well. Since costs vary by home and type of plan, homeowners insurance was not used in the calculation. The team used a 20% down payment to avoid private mortgage insurance (PMI) for a conventional loan or a mortgage insurance premium (MIP) for an FHA loan as those numbers will vary per home buyer as well. It's important to note that borrowers cannot avoid a funding fee for a VA loan – regardless of down payment.

A homebuyer’s specific monthly mortgage payment and other housing expenses will be based on their own situation, including but not limited to their credit score, debt-to-income ratio (DTI), down payment, loan amount, term and type, mortgage lender, purchase price, mortgage points, current mortgage interest rates, closing costs, Homeowners Association (HOA) fees, specific property taxes and homeowners insurance. Affordability is also based on their individual monthly debts, which may include student loan payments, car loans, credit card debt and other monthly housing costs and subscriptions. Individuals should see what they can afford based on their specific situation by speaking to a realtor, home loan expert, personal finance advisor or by using a mortgage calculator.