Median home: $205,000 | Mortgage rate: 7.1% | Property tax: 0.55% | Insurance: $3,200/yr
Louisiana is an affordable Gulf Coast state with unique culture. With a median home price of $205,000 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 Louisiana, with a property tax rate of 0.55% and average insurance of $3,200/year, these costs add significantly to your monthly payment beyond just principal and interest.
A 20% down payment on the median Louisiana home requires $41,000. FHA loans with 3.5% down need just $7,175, but you will pay mortgage insurance. Louisiana homestead exemption exempts the first $75,000 of home value from property tax.
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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 Louisiana, with median home prices at $205,000, you typically need a household income of at least $205,000 to afford the median home.
To afford the median Louisiana home at $205,000 with 20% down at 7.1% interest, you need approximately $47,234 annual household income. This is based on the 28% housing cost guideline.
The median home price in Louisiana is approximately $205,000 as of 2026. Prices vary significantly by city and county. Louisiana is an affordable Gulf Coast state with unique culture.
A 20% down payment on the median Louisiana home ($205,000) is $41,000. FHA loans allow 3.5% down ($7,175) and VA loans offer 0% down for eligible veterans.
Louisiana has a property tax rate of 0.55%, which is below the national average. On the median home, that is $1,128/year. Louisiana homestead exemption exempts the first $75,000 of home value from property tax.