Mississippi Home Affordability

The data below quantifies Mississippi 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 Mississippi home affordability to other states.

Mississippi Home Price-to-Income Ratios

The home price-to-income ratio for Mississippi comes from the Federal Housing Finance Agency's relatively new state median price series and their purchase only index combined with Mississippi 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 Mississippi was 3.33.

Home Price-to-Income Dollar Ratio: FHFA

Home Price-to-Income Index Ratio: FHFA

Note: Index set to 100 in Q1 of 2000

Mississippi Home Price-to-Income Ratio History

Date	FHFA (Dollar Ratio)	FHFA (Index Ratio)
December 2011	—	115.1
September 2011	—	111.6
June 2011	—	111.8
March 2011	—	111.4
December 2010	—	111.5
September 2010	—	114.8
June 2010	3.33	114.2
March 2010	3.32	114.6
December 2009	3.60	125.1
September 2009	3.62	128.9

Mississippi Home Price-to-Rent Ratios

The price-to-rent ratio for Mississippi 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 Mississippi was 21.66 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

Mississippi Home Price-to-Rent Ratio History

Date	FHFA (Dollar Ratio)	FHFA Adjusted (Dollar Ratio)	FHFA (Index Ratio)
December 2011	—	—	91.0
September 2011	—	—	88.3
June 2011	—	—	88.4
March 2011	—	—	88.1
December 2010	—	—	88.2
September 2010	—	—	90.8
June 2010	21.82	21.66	90.4
March 2010	21.75	21.59	90.7
December 2009	22.54	21.69	94.5

Mississippi Inferred Affordable Mortgage

The inferred affordable mortgage is determined by taking the median household income for Mississippi 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

Mississippi Inferred Affordable Mortgage History

Date	Inferred Mortgage
January 2012	$200,845
December 2011	$199,873
November 2011	$199,150
October 2011	$197,238
September 2011	$196,293
August 2011	$192,578
July 2011	$186,325
June 2011	$187,199
May 2011	$184,379
April 2011	$180,165
March 2011	$180,165
February 2011	$177,909
January 2011	$181,833