by Daniel Yoon | eXp Realty | Richmond, Virginia
With 5% down and a 30-year fixed rate at about 7.4%, Freddie Mac’s 30-year average in early October 2026, a household earning $100,000 per year can comfortably afford roughly a $270,000 to $290,000 home in the Richmond, Virginia area. That is below the typical single-family price in Henrico, Chesterfield, and Hanover (medians of $425,000 to about $508,000 in January through August 2026, per CVR MLS), so at this budget most buyers are looking at townhomes, condos, or older starter homes. Here is how the math works at every income level.
The Real Affordability Math
Lenders will approve you for more than you should spend. Your max approval is not your budget. I tell my clients to keep total housing costs (mortgage, taxes, insurance, HOA) at or below 28% of gross monthly income. Here is what that looks like:
Household income: $75,000/year ($6,250/month)
- Max monthly housing cost: $1,750
- Affordable purchase price: about $200,000 to $215,000 (at about 7.4% rates, October 2026)
- Where to look: Mostly condos and older, smaller homes. Inventory at this price is thin across the metro (the median condo or townhome sold for about $375,000 in January through August 2026, per CVR MLS), so down payment assistance matters more here.
Household income: $100,000/year ($8,333/month)
- Max monthly housing cost: $2,333
- Affordable purchase price: about $270,000 to $290,000 (at about 7.4% rates, October 2026)
- Where to look: Condos, townhomes, and older starter homes in the City of Richmond, Henrico, and Chesterfield, where the median single-family home sold for $425,000 to $450,000 in January through August 2026 (CVR MLS).
Household income: $130,000/year ($10,833/month)
- Max monthly housing cost: $3,033
- Affordable purchase price: about $360,000 to $385,000 (at about 7.4% rates, October 2026)
- Where to look: Townhomes and condos across the metro (the median condo or townhome sold for about $375,000 in January through August 2026, per CVR MLS) and some smaller or older single-family homes in Henrico, Chesterfield, and the City of Richmond.
Household income: $175,000/year ($14,583/month)
- Max monthly housing cost: $4,083
- Affordable purchase price: about $490,000 to $520,000 (at about 7.4% rates, October 2026)
- Where to look: A typical single-family home in most of the metro. January through August 2026 medians were $425,000 in Henrico, $450,000 in Chesterfield, $427,500 in the City of Richmond, and about $508,000 in Hanover (CVR MLS).
What People Forget to Include
- Property taxes: $250 to $400/month depending on county
- Homeowner insurance: $150 to $250/month
- HOA dues: $0 to $300/month (many Richmond neighborhoods have no HOA)
- Maintenance: Budget 1% of home value per year ($300 to $500/month)
- PMI: $100 to $250/month if down payment is under 20%
A $400,000 home with 5% down has a principal-and-interest payment of about $2,630 at about 7.4%, Freddie Mac’s 30-year average in early October 2026, but it actually costs about $3,270 per month once you add taxes, insurance, and PMI, and $3,600 or more when you also set aside money for maintenance. Make sure your budget accounts for the real number, not just principal and interest.
How Down Payment Affects Affordability
More down means lower monthly payments and no PMI:
- 3% down on $400K: $12,000 down, about $3,380/month total
- 5% down on $400K: $20,000 down, about $3,270/month total
- 10% down on $400K: $40,000 down, about $3,060/month total
- 20% down on $400K: $80,000 down, about $2,670/month total (no PMI)
(Totals include principal and interest at about 7.4%, Freddie Mac’s average in early October 2026, plus taxes, insurance, and PMI.)
The difference between 5% and 20% down is about $600/month. Over 30 years, that adds up. But do not wait to save 20% if it means renting for 3 more years. You build zero equity renting.
FAQs
How much do I need to earn to buy a house in Richmond VA?
At about 7.4% rates (Freddie Mac’s average in early October 2026), a household earning $75,000 can buy in roughly the $200,000-$215,000 range. At $100,000, you reach roughly the $270,000-$290,000 range. At $130,000, you reach roughly $360,000-$385,000, about the metro’s median townhome or condo price.
What is the minimum down payment in Virginia?
3% for conventional loans, 3.5% for FHA, 0% for VA loans, 0% for USDA in eligible areas. Virginia Housing offers grants covering 2-2.5% of the purchase price.
Should I buy the most expensive home I qualify for?
No. Your max approval is not your budget. Keep housing costs at 28% or less of gross income. Leave room for savings, emergencies, and actually enjoying your life.
Want to know your real buying power? Call Daniel Yoon at (804) 896-2694. I will connect you with a lender and map out exactly what neighborhoods fit your budget.