How Much House Can I Afford in Arizona on $40K?
Based on Arizona's 0.62% property tax rate and $2,100/yr homeowners insurance.
Can You Afford the Median Home in Arizona?
The median home in Arizona ($380K) exceeds your $117K budget by $263K. But many areas in Arizona have homes well below the median. Check the affordable cities below for areas within your budget.
Most Affordable Cities in Arizona
No tracked cities in Arizona have a median below your $117K budget. Here are the most affordable options.
Up to 5% DPA grant. First-time buyers in Arizona should explore this program to reduce upfront costs. Combined with your $117K budget, state assistance can significantly lower the cash you need to close.
Buying a Home in Arizona on $40K
In Arizona, your $40K salary buys roughly the same as the national average. With a 0.62% property tax rate and $2,100/yr insurance, your maximum affordable price is $117K, close to the $114K you would get using national averages. This means Arizona's overall housing costs are in line with most of the country.
Arizona's combination of 0.62% property taxes and $2,100/yr insurance puts it in the moderate-cost category. Your $117K budget gives you a solid starting point, though you will be looking below the $380K state median. Focus on cities and neighborhoods where your budget represents strong buying power — in many parts of Arizona, $117K buys a well-maintained home in a good school district.
Budget $6K for closing costs in Arizona (roughly 1.6% of the purchase price). Combined with your $11,684 down payment, you will need approximately $18K in cash to close. Home Plus AZ may help offset these costs — especially since their assistance does not need to be repaid in full. Get pre-approved with a Arizona-based lender who understands local programs and can close efficiently.