Median home: $325,000 | Mortgage rate: 7% | Property tax: 0.56% | Insurance: $1,100/yr
Delaware is a tax-friendly small state with no sales tax. With a median home price of $325,000 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 Delaware, with a property tax rate of 0.56% and average insurance of $1,100/year, these costs add significantly to your monthly payment beyond just principal and interest.
A 20% down payment on the median Delaware home requires $65,000. FHA loans with 3.5% down need just $11,375, but you will pay mortgage insurance. Delaware has no sales tax and low property taxes — a genuine cost-of-living advantage.
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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 Delaware, with median home prices at $325,000, you typically need a household income of at least $325,000 to afford the median home.
To afford the median Delaware home at $325,000 with 20% down at 7% interest, you need approximately $74,134 annual household income. This is based on the 28% housing cost guideline.
The median home price in Delaware is approximately $325,000 as of 2026. Prices vary significantly by city and county. Delaware is a tax-friendly small state with no sales tax.
A 20% down payment on the median Delaware home ($325,000) is $65,000. FHA loans allow 3.5% down ($11,375) and VA loans offer 0% down for eligible veterans.
Delaware has a property tax rate of 0.56%, which is below the national average. On the median home, that is $1,820/year. Delaware has no sales tax and low property taxes — a genuine cost-of-living advantage.