top of page

How Much House Can I Afford in Massachusetts
(2026 Guide)

Buying a home in Massachusetts is exciting  but figuring out how much you can really afford is the key to a confident, stress-free purchase. Between housing prices, taxes, insurance, and lender requirements, understanding your true budget keeps you from overstretching and helps you find a home that fits your lifestyle and your wallet.

Understanding
Home Affordability

When lenders talk about “affordability,” they mean the maximum home price your income, savings, and debts will allow. A good rule of thumb is that your monthly housing payment shouldn’t exceed 28% of your gross income, and your total monthly debt shouldn’t exceed 36%.

Local Massachusetts Costs You Should Expect

Massachusetts has higher-than-average housing costs, so factoring in local expenses is crucial:

  • Median home price (2025): $650,000 statewide; Medford averages $750,000; Newton/Brookline can exceed $1 million

  • Property tax rate: ~1.1% – 1.3% of assessed value

  • Home insurance: $1,200 – $2,000 per year

  • Utilities & maintenance: Estimate ~1% of property value per year

  • Closing costs: Typically 2% – 5% of the purchase price.

bottom of page