Calculate using real Birmingham data. Median home price: $160,000. Property tax rate: 0.4%.
With the median household income of $37,840 in Birmingham, AL, following the 28% rule, you could afford a monthly payment of about $883.
The cost of living index in Birmingham, AL is 84 (national average = 100). A home at the median price of $160,000 would require roughly 4.2x the median income.
A conventional 20% down payment on the median Birmingham, AL home ($160,000) would be $32,000. FHA loans may require as little as 3.5% ($5,600).