Alabama Home Affordability
The data below quantifies Alabama home affordability by using state home price indices to calculate price-to-income and price-to-rent ratios. The maximum affordable loan amount for the median household income is also calculated.
Alabama Home Price-to-Income Index
The home price-to-income ratio for Alabama is calculated from the Federal Housing Finance Agency's purchase only index and state annual median household income data from the Census CPS.1
Home Price-to-Income: FHFA
Note: Index set to 100 in Q1 of 2000
Alabama Home Price-to-Income Index History
| Date | FHFA |
|---|---|
| June 2010 | 105.0 |
| March 2010 | 106.1 |
| December 2009 | 111.2 |
| September 2009 | 109.6 |
| June 2009 | 110.4 |
Alabama Home Price-to-Rent Index
The price-to-rent ratio for Alabama is determined from the FHFA purchase only price index and median contract rent as reported by the Census ACS.
Home Price-to-Rent: FHFA
Note: Index set to 100 in Q1 of 2000
Alabama Home Price-to-Rent Index History
| Date | FHFA |
|---|---|
| June 2010 | 95.0 |
| March 2010 | 96.0 |
| December 2009 | 100.6 |
| September 2009 | 99.1 |
| June 2009 | 99.9 |
Alabama Inferred Affordable Mortgage
The inferred affordable mortgage is determined by taking the median household income for Alabama and calculating the mortgage 30% of that income could afford. Traditionally, 30% of income is the maximum amount a homeowner could use towards a home loan. Inferred affordable loan values are calculated from CPS median household income and average monthly mortgage rates.
Inferred Affordable Mortgage
| Date | Inferred Mortgage |
|---|---|
| July 2010 | $217,909 |
| June 2010 | $213,398 |
| May 2010 | $209,745 |
| April 2010 | $204,788 |
| March 2010 | $207,835 |
| February 2010 | $207,362 |
| January 2010 | $206,420 |
| December 2009 | $208,787 |
| November 2009 | $209,985 |
| October 2009 | $208,310 |
| September 2009 | $205,719 |
| August 2009 | $202,718 |
| July 2009 | $202,036 |