10 Best Places To Buy A Home With A Household Income Of $150,000

Part of planning where to buy a home is knowing where you can afford to live based on your household income. It’s no secret that the more a person makes, they more options they have in terms of where they can comfortably reside. For those wondering the best places to buy a home on a $150,000 household income, Rocket Homes^SM and BestPlaces.net teamed up to find out.

Finding The Best Places To Buy A Home On A $150,000 Household Income

The team first calculated the highest monthly mortgage payment for a household with a $150,000 annual gross income following the general rule of thumb to spend no more than 30% of it on a monthly payment. Our methodology section explains the assumptions we used to calculate this estimated payment.

On a household income of $150,000, that maximum monthly mortgage payment would be about $3,750.

While home buyers with a $150,000 income could likely afford to live in any of the best places to live on a $65,000 household income or $100,000 household income, they may want to use their higher salary to their advantage. So, we looked at cities that had estimated monthly mortgage payments above $2,500 (the maximum for a $100,000 income) and lower than $3,750.

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 150-mile radius of a higher-ranking city in the same state.

1. Manchester, New Hampshire

• Metro population: 417,025
• Median home price: $450,600
• Estimated monthly mortgage payment: $3,059

Manchester ranks in the top 1% of the country for lowest income tax and sales tax – because the state of New Hampshire has neither. Manchester residents can use the extra money to enjoy the splendors of the city at concerts, events and shopping  downtown or at nearby ski resorts and NASCAR races. There are also several free amenities, including access to Lake Massabesic, 11 recreational trails and a community calendar chock full of family events, including story times, game nights, book clubs and teen events.   

2. Sarasota, Florida

• Metro population: 836,995
• Median home price: $494,400
• Estimated monthly mortgage payment: $2,852

Sarasota is another city where residents need not worry about paying income taxes. It’s also the #1 best place to live in Florida, according to U.S. News & World Report. While the cost of living in Sarasota is slightly higher than the national average, it’s still much lower than other popular beach towns, including Key West, Miami and Palm Beach.

3. Madison, Wisconsin

• Metro population: 664,865
• Median home price: $379,800
• Estimated monthly mortgage payment: $2,500

Along with having one of the lowest median home prices for cities on this list, Madison is also the healthiest – boasting a better health index than 99% of other metro areas in the country. With access to parks and lakes, a low percentage of uninsured residents and a high number of healthy days reported by residents, it may come as no surprise that Wisconsin’s capital is one of the least stressed cities in America.

4. Burlington, Vermont

• Metro population: 220,411
• Median home price: $444,700
• Estimated monthly mortgage payment: $2,913 

Burlington is home to three different universities and colleges, including the university of Vermont, so it’s no surprise that education is a top employment opportunity in the city. Regardless of the industry, Burlington has an overall unemployment rate that’s lower than 95% of the country. There’s plenty of offerings in the college town, including year-round festivals and events, a lively arts and music scene and access to Lake Champlain, a popular destination located on the border between Vermont and New York.

5. Portland, Maine

• Metro population: 538,500
• Median home price: $479,200
• Estimated monthly mortgage payment: $2,924

With coastal views and a crime rate that’s lower than 95% of metro areas in the country, Portland has a quaint, small-town charm – even though it’s the most populated city in Maine. Among its many distinct neighborhoods, residents will find their niche, whether their interests are in art, history, Victorian architecture, outdoor recreation or culinary delights. Wherever residents choose to live, chances are their pets will also be welcome. After all, Portland is ranked #1 on our list of dog-friendly cities in the U.S.

6. Trenton, New Jersey

• Metro population: 367,430
• Median home price: $359,700
• Estimated monthly mortgage payment: $2,647

The Trenton area is a diverse space with a mix of cultures and incomes. While parts of Trenton have a higher poverty rate, surrounding neighborhoods within the metropolitan area are quite affluent. The capital city’s future shares space with its integral role in America history – as the site of Washington’s first military victory. Trenton’s location also makes for quick trips to Philadelphia in under an hour and New York in under an hour and a half.

7. Providence, Rhode Island

• Metro population: 1,624,578
• Median home price: $449,400
• Estimated monthly mortgage payment: $2,802

Creatives with an annual salary of $150,000 will find their place in Providence. Known as the “Creative Capital,” the city provides ample opportunity to build, design and craft, including painting and glass blowing classes, art exhibitions and open music jam sessions. Various forms of creativity can be experienced throughout Providence’s 15 neighborhoods. College Hill is home to the Rhode Island School of Design and Brown University, while Hope Street features historic homes and the Smith Hill area introduces apartment living inside old mill buildings. Inside the Jewelry/Innovation District, an old jewelry manufacturing hub is being transformed into the heart of innovation within the capital city.

8. Worcester, Massachusetts

• Metro population: 947,404
• Median home price: $414,800
• Estimated monthly mortgage payment: $2,620

Located in the center of Massachusetts, Worcester is home to eight colleges and universities, more than 60 parks, three historic lunch car diners, a new community center for crafts and a popular, “first come, first to stage” concert venue. Along with indoor amenities, Worcester also boasts an internationally recognized rowing course on Lake Quinsigamond and New England’s largest urban wildlife sanctuary, Broad Meadow Brook. These opportunities for fitness, social interaction, education and entertainment help the city rank in the top 15% of the country for its healthy residents.

9. Boise, Idaho

• Metro population: 749,202
• Median home price: $482,200
• Estimated monthly mortgage payment: $2,696 

Boise’s real estate market took off in 2020, when more home buyers desired less crowded, more affordable areas. It was one of the top housing markets in the U.S. in 2020 and one of our most promising cities of 2022. While home values have increased, due in part to its recent popularity, it’s still a sought-after location. That can be attributed to its mild climate, job growth, outdoor recreation opportunities and its transformation into the new tech-hub.

10. Stamford, Connecticut

• Metro population: 943,332
• Median home price: $561,100
• Estimated monthly mortgage payment: $3,696

At the top of the housing budget is Stamford. As part of the Bridgeport metro area, Stamford is one of the best places to raise a family. And it isn’t just because the city is home to several Fortune 500 companies, almost 20 miles of shoreline and more than 40 recreational spaces. It’s also safe. Stamford ranks in the top 6% of the country for low crime and has the lowest risk of experiencing a devastating natural disaster, ranking in the top 1% of the country for its low climate hazard index.

Bottom Line: East Coast And Capital Cities Are Popular Options On $150,000 Incomes

We found that several of the cities to make this list are located on the East Coast and/or are capitals of the states in which they reside. Some reasons these places may be more affordable for those with higher incomes than lower include location to other major metro areas, wealthier suburbs that sit just outside downtown metros and the fact that many East Coast and capital cities are often cultural and economic hubs as well as home to prestigious universities and exciting amenities.

Though access to top-notch schooling, services and facilities is a great benefit, it also comes with a price, including higher home values and higher property taxes. While these cities ranked in the top percentage of the country for most areas of our study, they often ranked toward the bottom for the average amount residents pay in property taxes.

Methodology: Finding The Best Cities To Buy A Home On $150,000 A Year

In this study, we discuss the best places to live that one can comfortably afford with an annual household income of $150,000.

The places analyzed in our study are the 383 major metropolitan areas in the U.S. These areas 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 $150,000” 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 $150,000 annual household income: (150,000/12) 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 home buyer’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.