Should You Buy or Rent in 2026? The $111K Income Threshold That Changes the Calculation

# Should You Buy or Rent in 2026? The $111K Income Threshold That Changes the Calculation

> **Quick answer:** Redfin says you need $111,252 in annual income to afford the median U.S. home in 2026 — but the median household earns only $86,185. That $25,000 gap tells half the story. In 57.7% of U.S. counties, buying is actually cheaper than renting on a monthly basis, and new-home prices have hit their lowest point since July 2021. Whether you should buy or rent right now depends almost entirely on where you live and how much you have saved for a down payment.

The rent vs. buy question in 2026 housing affordability math has finally gotten more interesting — not because it's gotten easy, but because the numbers are moving in opposite directions depending on where you look. The national headline is grim. The county-level reality is more nuanced. Here's what the data actually says.

## The $111K Threshold: What Redfin's 2026 Data Actually Shows

Redfin's 2026 affordability analysis found that homebuyers need to earn **$111,252 per year** to comfortably afford the median U.S. home, priced at $426,747. That figure assumes a 30-year fixed mortgage at approximately 6.1-6.46%, a 20% down payment, and housing costs capped at 30% of gross income.

The problem: the median U.S. household earns **$86,185** per year. That's a gap of roughly $25,000 — or about 29%.