Income Needed to Buy a Home in Colorado (2026)
Verdict: unaffordable — requires $151,225/year (#10 least affordable of 51 US states)
Colorado ranks #10 of 51 US states for housing unaffordability in 2026. Buying the median home at $541,842 requires a household income of about $151,225. That's $54,112 more than the median household actually earns ($97,113) — a shortfall of 56% of typical income.
Colorado's affordability ratio of 1.56 (required income ÷ actual median income) is 21.9% worse than the median across all 51 US states (1.28). Home prices here sit 56.3% above the cross-state median of $346,668.
A low 0.50% effective property tax rate keeps the monthly tax bill to $226, softening the total payment — and homeowners insurance is a real burden here at $3,412/year ($284/month), well above what most states pay. All-in, the monthly PITI (principal, interest, taxes, insurance) comes to $3,529.
Colorado monthly cost breakdown (2026)
| Median home price | $541,842 |
| Loan amount (10% down) | $487,658 |
| Monthly principal & interest | $3,018 |
| Monthly property tax (0.50% rate) | $226 |
| Monthly homeowners insurance | $284 |
| Total monthly PITI | $3,529 |
| Required household income | $151,225 |
| Median household income | $97,113 |
Run your own numbers
These figures model the median buyer. Your rate, down payment, and debts change the answer — check your personal maximum with the Home Affordability Analyzer or build a full payment schedule in the Advanced Mortgage Calculator. Closing costs typically add 2–5% on top — estimate them with the Closing Costs Estimator.
How Colorado compares
- Idaho — similar affordability (ratio 1.55, requires $126,154)
- Florida — similar affordability (ratio 1.55, requires $120,466)
- Maine — similar affordability (ratio 1.51, requires $115,341)
- West Virginia — among the most affordable US states (requires $48,369)
- Iowa — among the most affordable US states (requires $74,199)
See every state and province ranked in the 2026 Mortgage Affordability Index.
Frequently asked questions
How much income do you need to buy a house in Colorado in 2026?
About $151,225 per year to afford the median-priced home of $541,842, assuming a 10% down payment and standard 28% housing-cost-to-income guideline. The median Colorado household earns $97,113.
What is the monthly cost of owning a median home in Colorado?
Roughly $3,529 per month, including principal and interest, property tax, and homeowners insurance.
Is Colorado affordable at the median income?
No. The required income exceeds the median household income by $54,112 (56%), ranking Colorado #10 least affordable of 51 US states.
Methodology & sources
Assumes 10% down, 30-year fixed at prevailing 2026 rates, 28% housing-cost-to-income guideline. Home prices from Zillow ZHVI (March 2026); incomes from Census ACS 1-Year 2024; property taxes from Tax Foundation; insurance from Bankrate state averages. Figures model the median scenario and are not financial advice. Full sources on the affordability index.