Median home: $285,000 | Mortgage rate: 7.1% | Property tax: 2.08% | Insurance: $1,400/yr
Illinois is a large Midwest market anchored by Chicago. With a median home price of $285,000 and mortgage rates averaging 7.1%, 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 Illinois, with a property tax rate of 2.08% and average insurance of $1,400/year, these costs add significantly to your monthly payment beyond just principal and interest.
A 20% down payment on the median Illinois home requires $57,000. FHA loans with 3.5% down need just $9,975, but you will pay mortgage insurance. Illinois has the second-highest property taxes in the US — factor this into your budget.
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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 Illinois, with median home prices at $285,000, you typically need a household income of at least $285,000 to afford the median home.
To afford the median Illinois home at $285,000 with 20% down at 7.1% interest, you need approximately $65,667 annual household income. This is based on the 28% housing cost guideline.
The median home price in Illinois is approximately $285,000 as of 2026. Prices vary significantly by city and county. Illinois is a large Midwest market anchored by Chicago.
A 20% down payment on the median Illinois home ($285,000) is $57,000. FHA loans allow 3.5% down ($9,975) and VA loans offer 0% down for eligible veterans.
Illinois has a property tax rate of 2.08%, which is above the national average. On the median home, that is $5,928/year. Illinois has the second-highest property taxes in the US — factor this into your budget.