Bloomington, Illinois Home Affordability

The data below measures home affordability for the Bloomington-Normal, Illinois metropolitan area using price-to-income and price-to-rent metrics.¹ The maximum affordable loan amount for the median household income is also calculated. You can also compare Bloomington home affordability to other cities.

Bloomington, Illinois Home Price-to-Income Ratios

The current price-to-income ratio for Bloomington is 2.56 as determined by March 2012 Realtor median sales prices. The second chart shows a history of the ratio as an index calculated from the Federal Housing Finance Agency's Bloomington HPI series. Median household income data for Bloomington is from the Census American Community Survey.

Price-to-Income Dollar Ratio: Realtor

Price-to-Income Index Ratio: FHFA

Note: Index set to 100 in Q1 of 2000

Bloomington, Illinois Home Price-to-Income Ratio History

Date	Realtor (Dollar Ratio)	FHFA (Index Ratio)
March 2012	2.56	—
December 2011	2.53	97.4
September 2011	2.72	97.8
June 2011	2.61	97.9
March 2011	2.50	98.3
December 2010	2.65	99.0
September 2010	2.65	99.2
June 2010	2.65	98.8
March 2010	2.65	97.9

Bloomington, Illinois Home Price-to-Rent Ratios

The current adjusted price-to-rent ratio for Bloomington is 19.01 as determined by March 2012 Realtor median sales prices. This ratio is calculated using household size adjusted median contract rent for Bloomington. The chart below shows an index of the rent ratio calculated from the metro FHFA HPI series and the Bloomington median contract rent data from the Census ACS.

Price-to-Rent Dollar Ratio: Realtor, Realtor Adjusted Rent

Price-to-Rent Index Ratio: FHFA

Note: Index set to 100 in Q1 of 2000

Bloomington, Illinois Home Price-to-Rent Ratio History

Date	Realtor (Dollar Ratio)	Realtor Adjusted (Dollar Ratio)	FHFA (Index Ratio)
March 2012	21.45	19.01	—
December 2011	21.23	18.81	96.1
September 2011	22.78	20.18	96.5
June 2011	21.89	19.39	96.6
March 2011	20.97	18.58	97.0
December 2010	22.23	19.69	97.7
September 2010	22.23	19.69	97.8
June 2010	22.23	19.69	97.5
March 2010	22.23	19.69	96.6

Bloomington, Illinois Home Rent-to-Mortgage Payment Ratio

The rent-to-mortgage payment ratio uses the adjusted rent for Bloomington against a 100% loan-to-value mortgage (30-year fixed) for the median price home using Realtor home sales statistics. It's a lot like a cap rate, but I find it more appealing in ratio form. A ratio of 1.0 means that annual rent is equivalent annual mortgage payments. Values less than 1.0 indicate rents are cheaper and values greater than 1.0 mean mortgage payments are cheaper. Beware, taxes are not considered here. The rent-to-mortgage payment ratio for Bloomington was 0.92 in March 2012.

Rent-to-Mortgage Payment Dollar Ratio: Realtor

Bloomington, Illinois Home Rent-to-Mortgage Payment Ratio History

Date	Realtor Adjusted Rent (Dollar Ratio)
March 2012	0.92
December 2011	0.93
September 2011	0.85
June 2011	0.85
March 2011	0.85
December 2010	0.81
September 2010	0.85
June 2010	0.81
March 2010	0.79

Bloomington, Illinois Inferred Affordable Mortgage

The inferred affordable mortgage value is determined by taking the median household income for Bloomington, Illinois 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 ACS median household income and average monthly mortgage rates.

Inferred Affordable Mortgage

Bloomington, Illinois Inferred Affordable Mortgage History

Date	Inferred Mortgage
January 2012	$315,070
December 2011	$313,547
November 2011	$312,411
October 2011	$309,413
September 2011	$307,930
August 2011	$302,102
July 2011	$292,292
June 2011	$293,664
May 2011	$289,241
April 2011	$282,629
March 2011	$282,629
February 2011	$279,090
January 2011	$285,246