Idaho Home Affordability

The data below quantifies Idaho home affordability by using home prices and home price indices to calculate price-to-income and price-to-rent ratios.¹ The maximum affordable loan amount for the median household income is also calculated. You can also compare Idaho home affordability to other states.

Idaho Home Price-to-Income Ratios

The home price-to-income ratio for Idaho comes from the Federal Housing Finance Agency's relatively new state median price series and their purchase only index combined with Idaho annual median household income data. The FHFA home price series yields a dollar ratio (top chart) while the index results in an index ratio (bottom chart). Based on the latest FHFA state home prices in June 2010, the price-to-income ratio for Idaho was 2.99.

Home Price-to-Income Dollar Ratio: FHFA

Home Price-to-Income Index Ratio: FHFA

Note: Index set to 100 in Q1 of 2000

Idaho Home Price-to-Income Ratio History

Date	FHFA (Dollar Ratio)	FHFA (Index Ratio)
September 2011	—	96.6
June 2011	—	95.7
March 2011	—	95.9
December 2010	—	99.9
September 2010	—	105.7
June 2010	2.99	110.6
March 2010	3.00	112.6
December 2009	3.08	118.7
September 2009	3.23	120.1
June 2009	3.28	125.1

Idaho Home Price-to-Rent Ratios

The price-to-rent ratio for Idaho is determined for both the FHFA median price and the purchase only index by calculating a ratio with the median contract rent. The price-to-adjusted rent value takes into account CPS reported household size to attempt to correct for quality differences in renter and owner occupied homes. More on that process here. Again, the median price ratio is a dollar ratio and the HPI ratio is an index ratio defined to be 100 in Q1 2000. The adjusted price-to-rent ratio for Idaho was 18.54 in June 2010.

Home Price-to-Rent Dollar Ratio: FHFA, FHFA Adjusted Rent

Home Price-to-Rent Index Ratio: FHFA

Note: Index set to 100 in Q1 of 2000

Idaho Home Price-to-Rent Ratio History

Date	FHFA (Dollar Ratio)	FHFA Adjusted (Dollar Ratio)	FHFA (Index Ratio)
September 2011	—	—	87.6
June 2011	—	—	86.8
March 2011	—	—	87.0
December 2010	—	—	90.6
September 2010	—	—	95.8
June 2010	20.32	18.54	100.3
March 2010	20.37	18.59	102.1
December 2009	20.45	19.78	105.1
September 2009	21.45	20.74	106.4

Idaho Inferred Affordable Mortgage

The inferred affordable mortgage is determined by taking the median household income for Idaho 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 median household income and average monthly mortgage rates. The amounts are not adjusted for inflation.

Inferred Affordable Mortgage

Idaho Inferred Affordable Mortgage History

Date	Inferred Mortgage
November 2011	$246,487
October 2011	$244,122
September 2011	$242,952
August 2011	$238,353
July 2011	$230,614
June 2011	$231,696
May 2011	$228,206
April 2011	$222,990
March 2011	$222,990
February 2011	$220,197
January 2011	$225,054
December 2010	$226,360
November 2010	$237,506