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At recent median sale prices and a 7.24% mortgage rate, a buyer would need roughly $96,000 to $134,000 a year in household income to buy the typical home in the Chicago suburban counties, using a common 28% guideline. The exact number depends on the county, your down payment, your other debts and your loan type.
I’m Dana Gallagher, a Broker with Berkshire Hathaway HomeServices Starck Real Estate. I help buyers across the Chicago suburbs and the Northwest Suburbs figure out what they can comfortably afford before they fall in love with a house. Here’s how the math works, with real 2026 numbers.
The Short Answer by County
These estimates use each county’s median sale price for the three months ending September 2026, 20% down, a 30-year fixed loan at 7.24% (Freddie Mac’s average for the week of October 29, 2026), and each county’s average effective property tax rate from SmartAsset. They leave out homeowners insurance, HOA dues and PMI, which add to the payment.
| County | Median sale price | Monthly loan payment | Monthly property tax | Income at 28% |
|---|---|---|---|---|
| DeKalb | $304,319 | $1,659 | $583 | About $96,000 |
| McHenry | $364,185 | $1,986 | $662 | About $113,000 |
| Cook | $374,163 | $2,040 | $589 | About $113,000 |
| Will | $375,410 | $2,047 | $663 | About $116,000 |
| Kendall | $395,904 | $2,158 | $726 | About $124,000 |
| Kane | $409,085 | $2,230 | $699 | About $126,000 |
| DuPage | $443,507 | $2,418 | $706 | About $134,000 |
“Monthly loan payment” is principal and interest on 80% of the price. “Income at 28%” is the yearly income at which loan payment plus property tax equals 28% of your gross monthly income.
These are my own calculations from public data, not a loan approval. A lender will look at your full picture.
How Lenders Look at Your Income
Lenders compare your monthly debts to your gross monthly income. That’s your debt-to-income ratio, or DTI.
- Housing ratio: A common rule of thumb is to keep your housing payment (loan, taxes, insurance, HOA) near 28% of gross income.
- Total debt ratio: Many lenders also look at all monthly debts, including car loans, student loans and credit cards. A common guideline is 36%, though many loan programs allow more.
The Consumer Financial Protection Bureau explains DTI and how lenders use it at consumerfinance.gov. Your lender will tell you the limits for your loan.
What Changes the Number
Your down payment
Putting down less than 20% means a bigger loan and usually private mortgage insurance on a conventional loan. Read what PMI is and how to avoid or remove it. Illinois has down payment help for qualified buyers; see my post on first-time homebuyer programs in Illinois.
Mortgage rates
Freddie Mac’s 30-year average was 7.24% on October 29, 2026, up from 6.17% a year earlier. On the Will County example above, every one-point change in rate moves the monthly loan payment by roughly $200. I keep an eye on rates in my fall 2026 mortgage rate update.
Property taxes
Illinois property taxes are among the highest in the country. SmartAsset’s county estimates range from about 1.89% in Cook to 2.30% in DeKalb. On a $400,000 home, that’s roughly $7,560 to $9,200 a year. The actual bill depends on the township, school district and exemptions, so I pull the last bill for every home. My property taxes post explains how bills are built.
Homeowners insurance and HOA dues
Insurance costs depend on the home, the coverage and your carrier, so get a quote early. Townhomes, condos and many newer subdivisions also have HOA dues. In 55-plus communities such as Del Webb Sun City, dues cover different amenities; see my Del Webb Huntley HOA costs guide.
Your other debts
A $500 car payment can reduce what you qualify for as much as a big jump in price. Paying down a small balance before you apply can sometimes help more than waiting for rates to drop.
Buying Below the Median
The median is just the middle sale. Many buyers start with a townhome, condo or smaller home in a town where prices are lower. For example, see what $500K buys in St. Charles, Schaumburg and Huntley, and if you’re shopping higher, what $750K to $1M buys in the Northwest Suburbs.
Steps to Find Your Real Number
- Get pre-approved. A lender’s pre-approval looks at your actual income, credit and debts. Here’s why you need a pre-approval before you buy.
- Set a monthly payment you’re comfortable with, not just the top number a lender approves.
- Add taxes, insurance and HOA dues for the towns you like.
- Save for closing costs on top of the down payment. Your lender’s Loan Estimate shows them.
- Talk with me about towns that fit your budget and commute.
Thinking about whether now is the time? Read is now a good time to buy a home and the biggest mistakes home buyers make.
Already Own a Home?
If you’re selling to buy, the equity in your current home can make a big difference. Start with a free home value report.
A Quick Example
Say you’d like to buy in Will County near the $375,410 median with 20% down, or about $75,082. At 7.24%, the loan payment is about $2,047 a month. Adding property tax at SmartAsset’s 2.12% average brings it to about $2,710 before insurance.
At 28% of gross income, that works out to about $116,000 a year. If you also have a $400 car payment and a $300 student loan, your total monthly debts would be about $3,410. At a 36% total debt guideline, that would point to an income closer to $114,000 for the debts alone, so in that case the 28% housing number is the one that limits you.
Lenders use their own formulas, and many loan programs allow higher ratios. That’s why a pre-approval matters more than any calculator.
Ideas If the Numbers Feel Tight
- Look at towns or home types below the county median.
- Ask your lender about loan types with smaller down payments, and Illinois down payment help.
- Compare taxes town by town; two homes at the same price can carry very different bills.
- Pay down a monthly debt before you apply.
FAQs About Income and Buying a Home
How much do I need to make to buy a house in the Chicago suburbs?
Using September 2026 county median prices, 20% down, a 7.24% rate and a 28% guideline, roughly $96,000 to $134,000 a year depending on the county, before insurance and HOA dues.
What is the 28% rule?
It’s a common guideline that your housing payment, including taxes and insurance, should be about 28% of your gross monthly income. Lenders set their own limits.
What mortgage rate did these estimates use?
7.24%, Freddie Mac’s 30-year fixed average for the week ending October 29, 2026.
Do property taxes change how much house I can afford?
Yes. Illinois taxes are high, about 1.89% to 2.30% of value in Chicago-area counties according to SmartAsset, and they count in your monthly payment.
Can I buy with less than 20% down?
Yes. Many loans allow less, though conventional loans under 20% down usually need PMI. Illinois also has down payment help for qualified buyers.
How do I find out exactly what I can afford?
Get pre-approved with a lender, who will review your income, credit and debts, then pick a monthly payment you’re comfortable with.
Let’s Talk About Your Move
Tell me what you’re looking for, and I’ll send you current homes that fit. Call or text me at 224-858-0022, email mybrokerdana@gmail.com, or contact me here. You can also search homes for sale or get a free home value report.
Dana Gallagher, Broker (SRES®, CBR, CSR, ABR®, SRS) | Certified Luxury Home agent | BHHS Luxury Collection Specialist | Berkshire Hathaway HomeServices Starck Real Estate | ★★★★★ 5.0 on Google (40 reviews)
Last updated October 2026. Market figures come from public sources and change often.