How Much House Can You Afford in Michigan?
Lenders typically use the 28/36 rule: your monthly housing payment should not exceed 28% of gross monthly income, and total debt payments should stay under 36%. With Michigan's median income of $63,000/year ($5,250/month), that means a maximum housing payment of roughly $1,470/month.
At 6.85% over 30 years with a 10% down payment ($25,000), that monthly budget supports a purchase price of approximately $237,500–$250,000. The median home price in Michigan is $250,000, which means housing is more affordable than the national average.