Department of Numbers

Missouri Home Affordability

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

Missouri Home Price-to-Income Ratios

The home price-to-income ratio for Missouri comes from the Federal Housing Finance Agency's relatively new state median price series and their purchase only index combined with Missouri 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 Missouri was 2.68.

Home Price-to-Income Dollar Ratio: FHFA

Chart of Missouri home price-to-income ratio using FHFA median price

Home Price-to-Income Index Ratio: FHFA

Chart of Missouri home price-to-income ratio using FHFA HPI

Note: Index set to 100 in Q1 of 2000

Missouri Home Price-to-Income Ratio History

Date FHFA
(Dollar Ratio)
FHFA
(Index Ratio)
December 2013 121.2
September 2013 121.0
June 2013 119.0
March 2013 117.1
December 2012 117.2
September 2012 114.6
June 2012 114.7
March 2012 114.0
December 2011 121.8
September 2011 122.4

Missouri Home Price-to-Rent Ratios

The price-to-rent ratio for Missouri 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 Missouri was 17.61 in June 2010.

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

Chart of Missouri home price-to-rent ratio using FHFA median price

Home Price-to-Rent Index Ratio: FHFA

Chart of Missouri home price-to-rent ratio using FHFA HPI

Note: Index set to 100 in Q1 of 2000

Missouri Home Price-to-Rent Ratio History

Date FHFA
(Dollar Ratio)
FHFA Adjusted
(Dollar Ratio)
FHFA
(Index Ratio)
December 2013 95.5
September 2013 95.3
June 2013 93.7
March 2013 92.2
December 2012 92.3
September 2012 90.3
June 2012 90.4
March 2012 89.8
December 2011 89.5

Missouri Inferred Affordable Mortgage

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

Chart of Missouri maximum affordable home loan amount

Missouri Inferred Affordable Mortgage History

Date Inferred Mortgage
February 2014 $251,399
January 2014 $247,566
December 2013 $246,694
November 2013 $252,597
October 2013 $254,713
September 2013 $245,826
August 2013 $246,694
July 2013 $249,324
June 2013 $258,403
May 2013 $275,683
April 2013 $278,786
March 2013 $274,660
February 2013 $276,025

1. Specifically, Home prices are from the FHFA seasonally adjusted, purchase only quarterly series. Rent data is from the Census ACS and income is from the Census CPS. Rent and income data for the previous year is carried into the following year for calculations prior to release of new data.