How Much Do You Need to Make to Buy a Home in Los Angeles? (2026 Guide)

One of the most common questions I hear from buyers in Los Angeles is, “How much do I actually need to make to buy a home here?” With the median home price sitting around $1,050,000, it’s a fair question and one that doesn’t always have a simple answer. Buying in LA isn’t just about salary. It’s about how much you put down, your monthly obligations, and how you structure the purchase.

Understanding the difference between putting 20% down versus a lower down payment of 3.5% to 10% can dramatically change both your monthly payment and the income needed to qualify.

What the Median Price Really Means

The median price of $1,050,000 represents the middle of the Los Angeles market, primarily driven by single-family homes. It’s important to note that many first-time buyers purchase below the median by choosing condos, townhomes, or emerging neighborhoods. Still, the median price is a helpful reference point when discussing affordability and income requirements.

For the examples below, we’ll assume a 30-year fixed mortgage, average property taxes, and standard insurance costs. Your exact numbers will vary based on interest rates, credit score, and existing debt.

Buying a Home in LA With 20% Down

Putting 20% down on a $1,050,000 home means bringing approximately $210,000 to the table and financing the remaining $840,000. With this structure, buyers typically see a monthly housing payment in the range of $6,700 to $7,000, including principal, interest, property taxes, and insurance.

From a lender’s perspective, this payment usually requires a household income of roughly $215,000 to $240,000 per year, depending on other debts. The biggest advantage of putting 20% down is avoiding private mortgage insurance (PMI), which keeps monthly payments lower and strengthens offers in competitive situations. The tradeoff, of course, is the significant amount of cash needed upfront.

Buying With 10% Down

For buyers who want to keep more cash on hand, a 10% down payment is a common alternative. On a $1,050,000 home, that’s about $105,000 down, with a loan amount closer to $945,000. Monthly payments in this scenario generally fall between $7,400 and $7,900, factoring in mortgage insurance.

To qualify comfortably, most buyers need a household income in the range of $235,000 to $265,000 annually. While PMI increases the monthly payment slightly, many first-time buyers choose this route because it allows them to purchase sooner while maintaining savings for emergencies, renovations, or future investments.

Buying With 3.5%–5% Down

Low down payment options, such as FHA or other first-time buyer programs, allow buyers to enter the market with significantly less cash. At 3.5% down, the upfront investment is roughly $36,750, but the tradeoff comes in the form of higher monthly payments and mortgage insurance.

In this scenario, total monthly housing costs can range from $8,000 to $8,500, and qualifying typically requires a household income between $255,000 and $290,000 per year. These programs can be powerful tools for buyers with strong income but limited savings, though they do require careful planning to ensure long-term affordability.

Why Income Requirements Vary So Much

Two buyers earning the same salary can qualify for very different home prices. Factors like credit score, student loans, car payments, credit cards, HOA fees, and interest rates all play a major role. This is why online calculators often fall short — they don’t reflect your full financial picture.

It’s also worth noting that buying below the median price dramatically changes the math. Condos, townhomes, and homes in emerging neighborhoods can lower the income required by tens of thousands of dollars per year.

So, How Much Do You Really Need to Make?

At the current median price of $1,050,000, most buyers will need a household income between $215,000 and $290,000, depending on how much they put down. However, many first-time buyers successfully purchase homes priced between $650,000 and $900,000, significantly reducing both monthly payments and income requirements.

The key isn’t just how much you make it’s how you buy.

Final Thoughts

Buying a home in Los Angeles can feel intimidating, but with the right strategy, it’s absolutely achievable. Understanding your down payment options, monthly comfort level, and long-term goals makes all the difference.

If you’re curious what price range makes sense for you, or whether renting or buying is the smarter move right now, I’m always happy to walk through the numbers and help you create a plan that fits your lifestyle — no pressure, just clarity.

Connect with us today to find out more about monthly affordability and home prices.

Email: info@jimmyvibert.com

Phone: 818-334-6987