In Miami: How Much Do I Need to Make to Buy a Home?

Buying a home in Miami is a major goal for many, but with home values high and costs rising, “how much do I need to make?” is a key question. Below, we break down what the current market looks like, what affordability means, and what income you’ll likely need — depending on your target home price, down payment, and debt-to-income ratio.

1. What’s the Miami Home Market Like Right Now

To understand what income is required, first we have to know how much homes cost.

• The median sale price for homes in Miami recently has been around $590,000. Redfin

• The median listing price for all homes in Miami in August 2025 was about $625,000. Realtor

• In Miami‑Dade County, the average home value is slightly lower, around $520,000–$525,000 depending on location. Zillow+2Zillow+2

So depending on neighborhood, type of home (condo, single‑family, townhouse), you may be working with prices from ~$500,000 up to $800,000+ for more premium areas. Redfin+2Zillow+2

2. What “affordable” means: Key Factors

How much you need to make depends on several variables:

• Down payment (how much you put upfront)

• Interest rate on the mortgage

• Loan term (30‑year vs. 15‑year)

• Property taxes, insurance, maintenance, HOA fees

• Your other debts (car payments, credit cards, etc.), which affect your debt‑to‑income ratio

• The percentage of your income you’re comfortable putting toward housing (many lenders use 28‑33%, sometimes up to ~35‑40% depending on circumstances)

3. Income Required: Examples

Let’s run through some scenarios based on the typical prices in Miami as of 2025.

Basic Assumptions (for these calculations):

• Purchase price: $600,000 (typical median price)

• Down payment: 20% (so that you avoid higher mortgage insurance) ⇒ $120,000 down, $480,000 financed

• Interest rate: example ~6.5% (this will vary)

• Mortgage term: 30 years

• Property taxes + insurance + maintenance etc: assume some additional cost (~1.5‑2% of home value annually)

• Housing cost should stay under ~30‑33% of gross income for comfort and lender approval

Scenario A: Buying at $600,000

• Mortgage payment (principal + interest) for $480,000 at ~6.5% over 30 years is roughly $3,034/month

• Add property taxes, insurance, etc, maybe another $800‑$1,200 (this can vary a lot by neighborhood) ⇒ total housing expense might be $3,900‑$4,200/month

• If that is ~30% of your gross income, you’d need to earn about $156,000–$168,000/year

Scenario B: Lower cost property — $500,000

• 20% down = $100,000; finance $400,000

• Mortgage payment ~$2,528/month (P&I) at ~6.5%/30yr

• Add taxes/insurance/etc, say $700‑$1,100/month ⇒ total ~ $3,300‑$3,600/month

• To keep that under ~30% of income, you’d need income around $132,000–$144,000/year

Scenario C: More expensive area — $800,000+

• 20% down = $160,000; finance $640,000

• Mortgage payment ~$4,050/month (P&I) → plus taxes/insurance could push total housing costs to ~ $5,200‑$5,600/month (or more depending)

• To keep housing cost ≤30%, you’d need income around $208,000‑$225,000+/year

4. What Data & Studies are Saying

• One recent report said that homebuyers in Miami need to earn about $151,039/year to afford a “mid‑priced home.” Axios

• Another source pointed out that typical mortgage payments in Miami are ~$3,580/month, which leads to an income requirement of $143,187/year for something “typical” in that market. NBC 6 South Florida

So our scenario calculations above are pretty consistent with what people are seeing in the market.

5. Tips to Lower What You Need to Earn

If the required income is higher than what you have now, there are levers you can pull:

• Lower the purchase price: look in less expensive neighborhoods, or smaller homes/condos

• Larger down payment: reduces monthly payments and sometimes reduces interest or insurance costs

• Shop for a better interest rate: credit score, loan type, and timing matter

• Extend loan term: a 30‑year loan gives lower monthly payments than a 15‑year, though you pay more interest over time

• Reduce other debts: lowering your debt load improves your debt‑to‑income ratio → you may qualify for a larger mortgage relative to income

• Check tax credits / assistance programs: first‑time homebuyer assistance, local programs in Miami‑Dade, etc. Some require minimum income but help toward down payment or closing costs. Miami+2Miami-Dade County+2

6. What to Keep in Mind

• Just because you can qualify for a mortgage doesn’t mean you should max it out — you’ll want breathing room for utilities, maintenance, emergencies.

• Costs like homeowner association (HOA) fees (common for condos), flood insurance (especially in Miami), property taxes, insurance etc can add up significantly.

• Market and interest rates can change, so what you need today might change in a year or two.

7. Summary: How Much Do You Need in Miami

Putting it all together, here are ballpark gross income ranges depending on what kind of home you’re trying to buy:

These estimates assume 20% down, moderate interest rates, and that housing costs stay under ~30‑33% of income. If any of those inputs shift (lower down payment, higher rates, additional costs), the required income may be higher.

Ready to See What You Can Afford?

Every buyer’s situation is different — your income, credit, savings, and target neighborhood all play a role in determining what’s affordable for you.

📞 Call me today for a personalized, no-obligation estimate on what kind of home you can comfortably afford in Miami. Whether you’re months away or just starting to dream, I’ll walk you through the numbers and options with clarity and zero pressure. Let’s make your homeownership goal a reality — together.

Magdalena Audisio

(786)546-7563