11 US states where the 30% housing rule still holds up

July 5, 2026 - 02:36

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The 30% Housing Rule Still Works in These 11 States, But None Are in the South

For decades, financial advisors have pushed the "30% rule" -- the idea that no more than 30% of your gross income should go toward housing costs. While that guideline has become nearly impossible to follow in much of the country, a new analysis shows it still holds up in exactly 11 states. Notably, not a single one of them is located in the South.

The data, drawn from median home prices and median household incomes, reveals that the affordable states are clustered in the Midwest and the Rust Belt. These are places where wages have not collapsed as fast as home prices have risen in other regions. The list includes Ohio, Indiana, Michigan, Illinois, Wisconsin, Minnesota, Iowa, Missouri, Kansas, Nebraska, and Pennsylvania.

In these states, a typical household earning the median income can still afford a median-priced home without spending more than 30% of their paycheck on the mortgage, taxes, and insurance. For example, in Ohio and Indiana, the ratio sits comfortably below 25%, leaving room for savings and other expenses.

The absence of Southern states is striking. Fast-growing metros in Texas, Florida, Georgia, and the Carolinas have seen home prices skyrocket over the past five years, while local wages have not kept pace. Even smaller cities in the South now require a larger share of income for housing than many Northern industrial towns.

Experts warn that the 30% rule is a blunt tool, and it does not account for property taxes, maintenance, or student debt. Still, for buyers willing to look past warmer weather, these 11 states offer a rare chance to follow the old rule without stretching their budget.