Calculate using real Memphis data. Median home price: $180,000. Property tax rate: 1.29%.
With the median household income of $41,228 in Memphis, TN, following the 28% rule, you could afford a monthly payment of about $962.
The cost of living index in Memphis, TN is 82 (national average = 100). A home at the median price of $180,000 would require roughly 4.4x the median income.
A conventional 20% down payment on the median Memphis, TN home ($180,000) would be $36,000. FHA loans may require as little as 3.5% ($6,300).