Quick answer
With 20% down and a 6.5% 30-year mortgage, a $1,000,000 house needs about $268,495 in gross annual income. The estimated monthly housing cost is $6,265 before HOA dues or unusual local fees. That's about $26,849/year more than a $900,000 house needs. For context, the required income is about 3.6x the roughly $75,000 US median household income.
That monthly cost breaks down to roughly $5,057 in principal & interest on the $800,000 loan, plus about $917/month in estimated property tax and $292/month in estimated insurance.
$1,000,000 house income table
This table shows the approximate gross annual income needed at common down payments and mortgage rates, using a 28% housing debt-to-income guideline.
| Down payment | 5.5% rate | 6.0% rate | 6.5% rate | 7.0% rate | 7.5% rate |
|---|---|---|---|---|---|
| 3.5% down | $307,286 | $320,421 | $333,870 | $347,614 | $361,639 |
| 5% down | $303,314 | $316,246 | $329,485 | $343,016 | $356,823 |
| 10% down | $290,076 | $302,327 | $314,869 | $327,688 | $340,768 |
| 15% down | $276,837 | $288,408 | $300,253 | $312,360 | $324,714 |
| 20% down | $246,456 | $257,346 | $268,495 | $279,889 | $291,516 |
| 25% down | $234,289 | $244,498 | $254,950 | $265,633 | $276,533 |
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Open affordability calculatorHow the estimate works
- Mortgage: 30-year fixed principal and interest on the $800,000 loan (20% down) comes to about $5,057/month on this $1,000,000 house.
- Property tax: estimated at 1.1% of the home price - about $917/month here.
- Insurance: estimated at 0.35% of the home price - about $292/month here.
- PMI: estimated when the down payment is below 20%.
- Income rule: housing cost should stay near or below 28% of gross monthly income - 28% of the $268,495 required here is about $6,265/month, matching the total monthly cost above.
Lower the income required
On this $1,000,000 house specifically: dropping the rate from 7.5% to 5.5% lowers the required income by about $45,060/year, and raising the down payment from 3.5% to 25% lowers it by about $78,919/year (smaller loan, and PMI drops off at 20%). You can also compare the payment directly on the $1,000,000 mortgage payment table.
This table focuses on income, down payment, mortgage rate, property tax, insurance, PMI and housing debt-to-income math.