Median home: $585,000 | Mortgage rate: 6.9% | Property tax: 1.14% | Insurance: $1,500/yr
Massachusetts is a world-class education and innovation hub in New England. With a median home price of $585,000 and mortgage rates averaging 6.9%, 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 Massachusetts, with a property tax rate of 1.14% and average insurance of $1,500/year, these costs add significantly to your monthly payment beyond just principal and interest.
A 20% down payment on the median Massachusetts home requires $117,000. FHA loans with 3.5% down need just $20,475, but you will pay mortgage insurance. Massachusetts limits the property tax levy to 2.5% growth per year (Proposition 2.5).
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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 Massachusetts, with median home prices at $585,000, you typically need a household income of at least $585,000 to afford the median home.
To afford the median Massachusetts home at $585,000 with 20% down at 6.9% interest, you need approximately $132,096 annual household income. This is based on the 28% housing cost guideline.
The median home price in Massachusetts is approximately $585,000 as of 2026. Prices vary significantly by city and county. Massachusetts is a world-class education and innovation hub in New England.
A 20% down payment on the median Massachusetts home ($585,000) is $117,000. FHA loans allow 3.5% down ($20,475) and VA loans offer 0% down for eligible veterans.
Massachusetts has a property tax rate of 1.14%, which is near the national average. On the median home, that is $6,669/year. Massachusetts limits the property tax levy to 2.5% growth per year (Proposition 2.5).