Median home: $415,000 | Mortgage rate: 7% | Property tax: 0.62% | Insurance: $1,150/yr
Arizona is one of the fastest-growing Sun Belt states. With a median home price of $415,000 and mortgage rates averaging 7%, understanding what you can afford before house hunting is essential.
The 28/36 rule is the gold standard: spend no more than 28% of gross income on housing and no more than 36% on total debt. In Arizona, with a property tax rate of 0.62% and average insurance of $1,150/year, these costs add significantly to your monthly payment beyond just principal and interest.
A 20% down payment on the median Arizona home requires $83,000. FHA loans with 3.5% down need just $14,525, but you will pay mortgage insurance. Arizona property taxes are capped — assessed value cannot rise more than 5% per year.
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Based on the 28/36 rule, your total housing payment should not exceed 28% of gross monthly income, and total debts should stay under 36%. In Arizona, with median home prices at $415,000, you typically need a household income of at least $415,000 to afford the median home.
To afford the median Arizona home at $415,000 with 20% down at 7% interest, you need approximately $94,663 annual household income. This is based on the 28% housing cost guideline.
The median home price in Arizona is approximately $415,000 as of 2026. Prices vary significantly by city and county. Arizona is one of the fastest-growing Sun Belt states.
A 20% down payment on the median Arizona home ($415,000) is $83,000. FHA loans allow 3.5% down ($14,525) and VA loans offer 0% down for eligible veterans.
Arizona has a property tax rate of 0.62%, which is below the national average. On the median home, that is $2,573/year. Arizona property taxes are capped — assessed value cannot rise more than 5% per year.