Department of Numbers

This section of Department of Numbers is no longer being updated and may be removed in the future. The data here is out of date and should no longer be used.

Atlanta, Georgia Home Affordability

The data below measures home affordability for the Atlanta-Sandy Springs-Marietta, Georgia 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 Atlanta home affordability to other cities.

Atlanta, Georgia Home Price-to-Income Ratios

The current price-to-income ratio for Atlanta is 2.6 as determined by March 2014 Realtor median sales prices. The second chart shows a history of the ratio as an index calculated from the Federal Housing Finance Agency's Atlanta HPI series. Median household income data for Atlanta 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

Atlanta, Georgia Home Price-to-Income Ratio History

Date Realtor
(Dollar Ratio)
(Index Ratio)
March 2014 2.60
December 2013 2.61 106.7
September 2013 2.79 105.5
June 2013 2.62 103.3
March 2013 2.11 100.4
December 2012 1.86 99.6
September 2012 1.86 98.2
June 2012 1.86 97.0

Atlanta, Georgia Home Price-to-Rent Ratios

The current adjusted price-to-rent ratio for Atlanta is 14.68 as determined by March 2014 Realtor median sales prices. This ratio is calculated using household size adjusted median contract rent for Atlanta. The chart below shows an index of the rent ratio calculated from the metro FHFA HPI series and the Atlanta 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

Atlanta, Georgia Home Price-to-Rent Ratio History

Date Realtor
(Dollar Ratio)
Realtor Adjusted
(Dollar Ratio)
(Index Ratio)
March 2014 15.56 14.68
December 2013 15.61 14.73 95.0
September 2013 16.70 15.76 94.0
June 2013 15.71 14.83 92.1
March 2013 12.62 11.91 89.5
December 2012 11.12 10.49 88.7
September 2012 11.12 10.49 87.5
June 2012 11.12 10.49 86.4

Atlanta, Georgia Home Rent-to-Mortgage Payment Ratio

The rent-to-mortgage payment ratio uses the adjusted rent for Atlanta 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 Atlanta was 1.14 in March 2014.

Rent-to-Mortgage Payment Dollar Ratio: Realtor

Atlanta, Georgia Home Rent-to-Mortgage Payment Ratio History

Date Realtor Adjusted Rent
(Dollar Ratio)
March 2014 1.14
December 2013 1.12
September 2013 1.04
June 2013 1.17
March 2013 1.54
December 2012 1.80
September 2012 1.77
June 2012 1.73

Atlanta, Georgia Inferred Affordable Mortgage

The inferred affordable mortgage value is determined by taking the median household income for Atlanta, Georgia 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

Atlanta, Georgia Inferred Affordable Mortgage History

Date Inferred Mortgage
February 2014 $275,970
January 2014 $271,762
December 2013 $270,804
November 2013 $277,285
October 2013 $279,608
September 2013 $269,852
August 2013 $270,804
July 2013 $273,692
June 2013 $283,658
May 2013 $302,627
April 2013 $306,033
March 2013 $301,504
February 2013 $303,003

1. Specifically, home prices are from the non seasonally adjusted FHFA all-transactions quarterly series. Dollar ratios are calculated using NAR metro prices when available. Rent and income data are from the Census ACS and are carried forward into the following year prior to release of the new data.