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You may have heard that 20% is the ideal down payment on a house, but that doesn’t mean you must pony up that amount to become a homeowner. In truth, the average house down payment is considerably smaller. Currently, the median down payment for a house is 15%, according to data from the National Association of Realtors® (NAR).
Here, you’ll learn more about down payments so you can house-hunt like an insider. Getting a sense of what others are paying and how that differs based on geographic area is helpful. We’ll also share how you might access help if you can’t come up with 20%. Armed with this intel, you’ll be better prepared to navigate that major rite of passage: purchasing a home.
Table of Contents
Key Points
• The median down payment for a house in the US ranges widely from 10% to 35% of the purchase price.
• The amount of the down payment can vary based on factors like loan type, credit score, and lender requirements.
• A larger down payment can result in lower monthly mortgage payments and potentially better loan terms.
• Down payment assistance programs and gifts from family members can help with affordability.
• It’s important to save and plan for a down payment to achieve homeownership goals.
Average Down Payment Statistics
As of 2023, the median down payment for a house was 15%, or $63,908 if you consider that the median national home price in 2023 was $426,056, according to Redfin. This was up slightly from 13% in 2022, according to the NAR. (The median means half of buyers put down less and half put down more; it’s generally considered a better barometer than an average, because the latter can be thrown off by outliers — people who spend wildly more or less than usual.)
This 15% figure shows that the conventional wisdom that you need 20% down to purchase a home is, to a large extent, untrue. In fact, in an April 2024 SoFi survey of prospective homebuyers, many planned to put down far less than 20%. Almost a third of respondents (29%) said they planned to put down 10% or less, and 7% of those surveyed were exploring zero-down-payment options.
A 20% down payment will lower your mortgage amount and monthly payments vs. a smaller down payment, and will allow you to avoid private mortgage insurance (PMI), but it’s not the only game in town.
Average Down Payment on a House for First-Time Buyers
First-time buyers make about a third of all home purchases, and the typical down payment for first-time buyers in the NAR survey was 8%, while repeat buyers’ typical down payment was 19%. (Repeat buyers often have money from the sale of their first residence to put toward the purchase of their next one.)
Down Payment Requirements by Mortgage Loan Type
The amount of money you put down on a home may be governed in part by the type of mortgage loan you choose (and conversely, how much money you have saved for a down payment could dictate the type of mortgage you qualify for). Let’s take a look at the different loan types and their down payment requirements.
Remember that if you are buying your first home or you haven’t purchased a residence in three or more years, you may qualify as a first-time homebuyer and be eligible for special first-time homebuyer programs.
Conventional Loan
This is the kind of loan favored by most buyers, and for first-time homebuyers some conventional home loans can allow for as little as 3% down on a home purchase. A repeat homebuyer might need to put down a bit more — say 5%.
FHA Loan
An FHA loan, acquired through private lenders but guaranteed by the Federal Housing Administration, allows for a 3.5% minimum down payment if the borrower’s credit score is at least 580.
VA Loan and USDA Loan
These loans usually require no down payment, although there are still other hoops to jump through to qualify for one of these loans.
A VA loan backed by the Department of Veterans Affairs, is for eligible veterans, service members, Reservists, National Guard members, and some surviving spouses. The VA also issues direct loans to Native American veterans or non-Native American veterans married to Native Americans. For a typical VA loan borrower, no down payment is required.
A USDA loan backed by the U.S. Department of Agriculture is for households with low to moderate incomes buying homes in eligible rural areas. The USDA also offers direct subsidized loans for households with low and very low incomes. Typically, a credit score of 640 or higher is needed. While borrowers can make a down payment, one is not required.
Jumbo Loan
A jumbo loan is a loan for an amount over the conforming loan limit, which is set by the Federal Housing Finance Agency (FHFA). In most U.S. counties, the conforming loan limit for a single-family home in 2024 is $766,550. Minimum down payment rules for jumbo loans vary by lender but are generally higher than those for conforming loans. Some lenders require a 10% down payment, and others require as much as 20%.
For all of the above loan types, the home being purchased must be a primary residence in order to qualify for the minimum down payment, but a homebuyer can use a conventional or VA loan to purchase a multifamily property with up to four units if one unit will be owner-occupied.
Average Down Payment by Age Group
The latest NAR Home Buyers and Sellers Generational Trends Report breaks down by age the percentage of a home that was financed by homebuyers in 2023.
Older buyers tend to use proceeds from the sale of a previous residence to help fund the new home. Buyers 59 to 68 years old, for instance, put a median of 22% down, the NAR report shows.
Most younger buyers depend on savings for their down payment. Buyers ages 25 to 33 put down a median of 10%, and those ages 34 to 43, 13%. A fortunate 20% of the younger homebuyers (those age 25-33) received down payment help from a friend or relative.
Percentage of Home Financed
All buyers | Ages 25-33 | Ages 34-43 | Ages 44-58 | Ages 59-68 | Ages 69-77 | Ages 78-99 | |
---|---|---|---|---|---|---|---|
50% | 15% | 6% | 8% | 15% | 22% | 31% | 29% |
50-59% | 6% | 2% | 5% | 5% | 9% | 14% | 11% |
60-69% | 6% | 2% | 5% | 6% | 9% | 11% | 9% | 71-79% | 13% | 13% | 14% | 14% | 12% | 9% | 15% |
80-89% | 23% | 26% | 27% | 22% | 19% | 18% | 14% |
90-94% | 13% | 19% | 14% | 12% | 10% | 4% | 8% |
95-99% | 14% | 22% | 17% | 12% | 8% | 4% | 7% |
100% (financed the whole purchase) | 12% | 9% | 11% | 13% | 9% | 9% | 6% |
Average Down Payment by State
The average house down payment in any given state is tied to home prices in that location. You can look into the cost of living by state for an overview and then find the median home value in a particular state at a given point in time and estimate what your down payment might be.
The least expensive states in which to buy a home? Iowa, Oklahoma, Ohio, Mississippi, and Louisiana are among them, according to Redfin.
Average Down Payment On a House in California
California, the most populous state and one of the largest by area, is joined by Hawaii and Colorado on many lists of the most expensive states in which to buy a house. Redfin shows a median sales price of $859,300 in California in spring of 2024. A 3% down payment would be $25,779; 10% down, $85,930; and 20% down, $152,260. The Los Angeles housing market is among the toughest in California, with the median sale price up more than 10% in the last year to $1,050,000. You might want to check out housing market trends by city as well if you are interested in finding out where owning a home could be more or less expensive.
Hawaii comes out near the top with a median home price of $754,800. Three percent down would be $22,644; 10% down, $75,480; and 20%, $150,960. In Hawaii, the conforming loan limit is $1,149,825, a reflection of the state’s high home prices. If you need a mortgage for more than that amount in Hawaii, you’ll be in the market for a jumbo loan.
Recommended: How to Afford a Down Payment on Your First Home
First-time homebuyers can
prequalify for a SoFi mortgage loan,
with as little as 3% down.
Source of Down Payment
You’re probably wondering where homebuyers get the money to afford a down payment, especially first-time homebuyers. NAR has polled buyers to probe that question. Not surprisingly, more than half of buyers (53%) simply say they have saved up the money — which of course isn’t simple at all.
Savings is especially likely to fund a home purchase for those ages 25-33. Almost three-quarters of younger buyers rely on it for their down payment. Older buyers also use savings but are more likely to draw on the sale of a primary residence. This is especially true after age 59.
Other down payment sources include gifts from relatives or friends, sale of stock, a loan or draw from a 401K or pension, or an inheritance. For those who don’t have generational wealth or savings to rely on, first-time homebuyer programs can make home ownership possible.
City, county, and state down payment assistance programs are also out there. They may take the form of grants or second mortgages, some with deferred payments or a forgivable balance.
How Does Your Down Payment Affect Your Monthly Payments?
Curious to see what your potential mortgage would look like based on different down payments? Start with a home affordability calculator (like the one below) to get a feel for how much you’ll need to put down and other expenses.
Or use this mortgage calculator to estimate how much your mortgage payments would be, depending on property value, down payment, interest rate, and repayment term.
If Your Down Payment Is Less Than 20%
If your down payment will be less than 20%, you now know that you’ll have plenty of company. (In SoFi’s survey, 14% of would-be buyers said not having an adequate down payment was their primary challenge.) Consider these ways to optimize the situation:
• A government loan could be the answer: FHA loans are popular with some first-time buyers because of the lenient credit requirements. The down payment for an FHA loan is just 3.5% if you have a credit score of 580 or more. Just know that upfront and monthly mortgage insurance premiums (MIP) always accompany FHA loans, and remain for the life of the loan if the down payment is under 10%. If you put 10% or more down, you’ll pay MIP for 11 years.
• You may be able to improve your loan terms: If you can’t pull together 20% for a down payment, you can still help yourself by showing lenders that you’re a good risk. You’ll likely need a FICO® score of at least 620 for a conventional loan. If you have that and other positive factors, you may qualify for a more attractive interest rate or better terms.
• You can eventually cancel PMI: Lenders are required to automatically cancel PMI when the loan balance gets to 78% LTV of the original value of the home. You also can ask your lender to cancel PMI on the date when the principal balance of your mortgage falls to 80% of the original home value.
You may be able to find down payment assistance: City, county, and state down payment assistance programs are out there, and SoFi’s survey suggests they don’t get enough attention: About half (49%) of the homebuyers who said they were challenged to come up with a down payment hadn’t looked into city or state down payment assistance programs. The assistance may take the form of grants or second mortgages, some with deferred payments or a forgivable balance.
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Dream Home Quiz
The Takeaway
What is the average down payment on a house? Currently, it’s about 15% of the home’s purchase price, which usually means mortgage insurance and higher payments for the buyer. But buyers who put less than 20% down on a house unlock the door to homeownership every day. If you want to join them, you can be helped along by low down payments for first-time homebuyers, as well as government loans, down payment assistance, and other programs.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% – 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It’s online, with access to one-on-one help.
SoFi Mortgages: simple, smart, and so affordable.
FAQ
Is 10% down payment enough for a house?
Yes. More than a third of all buyers put down 10% or even less to buy a home. Lower down payments are especially common among younger and/or first-time homebuyers.
What is the minimum you should put down on a house?
Conventional wisdom says the minimum down payment is 20%, but most buyers put down less — 15% is far more common. Younger buyers and first-time homebuyers, especially, often put down far less and some home loans allow you to finance 97% or even 100% of the home’s cost.
What factors can affect my down payment requirements?
The amount of down payment you’ll need to come up with depends on your loan type, credit history and credit score, the cost of the property you’re buying, and whether you are a first-time homebuyer.
What are the pros and cons of putting down less than 20% on a house?
Putting down less than 20% on a house might allow you to buy a home sooner. It might also permit you to set aside money for renovations or to pay off other debts. The disadvantage is that those who put down less than 20% usually have to pay for private mortgage insurance which adds to their monthly costs. (Those with FHA loans who put down less than 20% will pay a mortgage insurance premium.)
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SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
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Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility for more information.
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
SOHL-Q324-107
Source: sofi.com
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If you’ve always dreamed of opening your own business, now may be the time. The entrepreneurial spirit is thriving in the U.S. as historic numbers of Americans start their own companies. In 2023, a record 5.5 million new business applications were filed, according to the U.S. Census Bureau. The trend started in 2020 during the pandemic and has accelerated ever since.
There are many reasons why new business is big business today. For some individuals, the allure of running their own enterprise is a motivation too strong to resist. Others see opportunity created by changing consumer tastes and needs. For yet other people, starting a business may be a way to start over after a job layoff.
Small businesses are the backbone of the U.S. economy, employing 46% of the workforce, according to the Small Business Administration (SBA). But of course, a new business needs to stay in business. And one of the key factors that can help determine its success: Location, location, location.
So then, where is the best place to start a business? In what cities can a new business not only find its footing but go on to flourish?
To discover the answer, SoFi looked at the 50 largest cities across the U.S. with populations of 500,000 or less, and ranked them on eight different criteria, including annual business applications, average cost of office space, unemployment rates, and cost of living. We assessed the criteria for each city on a 10-point scale for a possible total score of 80 points. (See below for the complete details about our methodology.)
What we found was that while businesses are starting nationwide, certain cities across the country seem to be particularly beneficial for new businesses. Read on to learn the 10 best cities to start a business in the U.S.
Key Points
As SoFi analyzed the data about each city, these important findings stood out:
• The South is a hotspot for new businesses. Three of the top 10 cities on our list are in Florida, and all score high in self employment. Plus, Florida has increasing numbers of businesses owned by underrepresented groups. Atlanta, the Number 3 city overall, has a large population of working age people and ranks high for new business applications.
• Cold-weather cities are offering new businesses a warm welcome. Minneapolis clinched the Number 2 spot on our list, and St. Paul, Minnesota and Madison, Wisconsin scored in the top 10. All three have large populations of working age people.
• Texas is poised to become a new-business powerhouse. The Lone Star State has 2 of the top 10 cities on the list — Plano and Irving. Younger people are gravitating to Texas, giving new businesses in these cities plenty of working age adults to employ.
Our Findings
Reviewing the entire list of cities in the SoFi analysis reveals some important, even surprising, information for aspiring business owners. For instance, Miami is the city with the most new business applications and highest level of self employment, while Witchita, Kansas, offers the best prices for office space, and Cleveland has the lowest cost of living.
Check out how other top cities rank when it comes to opening a new business.
Ranking | City | Walkability Score | Cost of Living Score | Office Space Cost Score | Household Income Score | Unemployment Score | New Business Score | Self-Employment Score | Working Age Score | Total Score |
---|---|---|---|---|---|---|---|---|---|---|
1 | Miami, Florida | 8.85 | 3.74 | 0.44 | 4.46 | 5.14 | 10.00 | 10.00 | 9.50 | 52.13 |
2 | Minneapolis, Minnesota | 8.16 | 4.55 | 4.60 | 6.21 | 4.73 | 3.17 | 9.71 | 10.00 | 51.13 |
3 | Atlanta, Georgia | 5.52 | 4.14 | 2.65 | 6.32 | 4.05 | 9.75 | 7.88 | 9.99 | 50.30 |
4 | Plano, Texas | 4.71 | 3.43 | 3.79 | 8.60 | 6.22 | 4.26 | 8.68 | 9.21 | 48.89 |
5 | St. Louis, Missouri | 7.59 | 5.45 | 5.27 | 4.31 | 4.73 | 3.55 | 8.22 | 9.36 | 48.48 |
6 | St. Paul, Minnesota | 8.16 | 4.85 | 5.36 | 5.69 | 5.27 | 2.50 | 6.98 | 9.25 | 48.06 |
7 | Orlando, Florida | 4.71 | 4.44 | 2.88 | 5.39 | 5.14 | 7.05 | 8.66 | 9.74 | 48.01 |
8 | St. Petersburg, Florida | 4.94 | 4.75 | 3.23 | 5.72 | 5.95 | 5.62 | 8.77 | 8.99 | 47.97 |
9 | Madison, Wisconsin | 5.75 | 4.19 | 5.10 | 6.09 | 7.30 | 2.31 | 6.61 | 9.99 | 47.34 |
10 | Irving, Texas | 5.17 | 4.60 | 5.36 | 6.24 | 5.81 | 4.57 | 5.90 | 9.31 | 46.97 |
11 | Lincoln, Nebraska | 5.06 | 5.05 | 5.79 | 5.52 | 6.62 | 1.94 | 7.60 | 9.14 | 46.71 |
12 | New Orleans, Louisiana | 6.67 | 4.65 | 4.71 | 5.10 | 2.97 | 5.32 | 7.85 | 9.04 | 46.30 |
13 | Jersey City, New Jersey | 10.00 | 2.78 | 0.00 | 7.41 | 5.00 | 3.89 | 7.35 | 9.86 | 46.29 |
14 | Lubbock, Texas | 4.48 | 5.35 | 5.49 | 4.78 | 6.35 | 2.36 | 8.09 | 9.34 | 46.25 |
15 | Omaha, Nebraska | 5.52 | 5.15 | 5.59 | 5.71 | 5.81 | 2.85 | 6.58 | 8.89 | 46.10 |
16 | Pittsburgh, Pennsylvania | 7.13 | 5.20 | 4.28 | 4.90 | 5.41 | 2.43 | 6.61 | 9.63 | 45.58 |
17 | Lexington-Fayette, Kentucky | 3.91 | 4.90 | 5.69 | 5.38 | 5.14 | 2.86 | 8.31 | 9.20 | 45.39 |
18 | Colorado Springs, Colorado | 4.14 | 3.99 | 4.94 | 6.43 | 5.00 | 4.11 | 7.61 | 9.10 | 45.32 |
19 | Virginia Beach, Virginia | 3.79 | 4.14 | 4.86 | 7.12 | 6.22 | 3.84 | 6.12 | 8.94 | 45.04 |
20 | Arlington, Texas | 4.37 | 4.70 | 5.26 | 5.83 | 5.14 | 3.58 | 6.44 | 9.21 | 44.52 |
21 | Tulsa, Oklahoma | 4.48 | 5.45 | 5.53 | 4.61 | 4.46 | 3.21 | 7.75 | 8.80 | 44.30 |
22 | Gilbert, Arizona | 3.33 | 3.33 | 2.71 | 9.37 | 6.08 | 3.83 | 6.65 | 8.85 | 44.16 |
23 | Santa Ana, California | 7.70 | 2.27 | 3.94 | 6.85 | 5.27 | 2.99 | 5.56 | 9.42 | 44.01 |
24 | Reno, Nevada | 4.60 | 3.79 | 4.41 | 6.64 | 5.14 | 3.55 | 6.72 | 9.10 | 43.95 |
25 | Aurora, Colorado | 4.94 | 3.84 | 4.40 | 6.40 | 5.14 | 3.77 | 6.19 | 9.24 | 43.91 |
26 | Durham, North Carolina | 3.45 | 4.70 | 3.63 | 6.08 | 5.54 | 3.61 | 7.41 | 9.44 | 43.85 |
27 | Long Beach, California | 8.39 | 2.07 | 2.18 | 6.43 | 4.05 | 3.46 | 7.59 | 9.60 | 43.77 |
28 | Chandler, Arizona | 4.02 | 3.59 | 4.40 | 8.08 | 5.81 | 3.83 | 4.79 | 9.20 | 43.72 |
29 | Anaheim, California | 6.44 | 1.82 | 4.70 | 7.20 | 5.27 | 2.99 | 5.88 | 9.24 | 43.55 |
30 | Corpus Christi, Texas | 4.60 | 5.25 | 6.11 | 5.21 | 5.14 | 1.94 | 6.37 | 8.85 | 43.47 |
31 | Tampa, Florida | 5.75 | 4.60 | 0.23 | 5.43 | 4.86 | 5.61 | 7.43 | 9.54 | 43.45 |
32 | Buffalo, New York | 7.70 | 5.66 | 6.01 | 3.76 | 3.92 | 2.02 | 4.90 | 9.04 | 43.00 |
33 | Irvine, California | 4.94 | 0.00 | 2.04 | 10.00 | 5.41 | 2.99 | 7.89 | 9.72 | 42.98 |
34 | Oakland, California | 8.62 | 0.81 | 0.03 | 7.68 | 4.46 | 2.43 | 9.40 | 9.44 | 42.86 |
35 | Wichita, Kansas | 4.02 | 5.35 | 6.45 | 4.94 | 5.00 | 2.50 | 5.75 | 8.78 | 42.79 |
36 | Honolulu, Hawaii | 7.59 | 0.66 | 2.98 | 6.73 | 6.35 | 2.46 | 7.24 | 8.74 | 42.74 |
37 | Raleigh, North Carolina | 3.56 | 4.39 | 2.40 | 6.40 | 5.95 | 3.95 | 6.32 | 9.69 | 42.65 |
38 | Henderson, Nevada | 3.45 | 4.04 | 3.55 | 6.94 | 4.32 | 4.45 | 7.21 | 8.33 | 42.29 |
39 | Cincinnati, Ohio | 5.63 | 5.20 | 6.06 | 4.00 | 3.38 | 3.28 | 5.20 | 9.50 | 42.25 |
40 | Fort Wayne, Indiana | 3.68 | 5.45 | 6.19 | 4.74 | 4.73 | 2.67 | 5.83 | 8.52 | 41.81 |
41 | Greensboro, North Carolina | 3.33 | 5.30 | 5.16 | 4.48 | 4.19 | 3.55 | 6.57 | 9.20 | 41.78 |
42 | Anchorage, Alaska | 3.56 | 3.38 | 2.40 | 7.79 | 5.27 | 2.83 | 7.05 | 9.14 | 41.42 |
43 | Toledo, Ohio | 5.29 | 5.61 | 6.28 | 3.69 | 2.70 | 2.75 | 6.25 | 8.72 | 41.29 |
44 | Riverside, California | 4.94 | 3.13 | 4.68 | 6.79 | 4.46 | 2.34 | 5.33 | 9.44 | 41.11 |
45 | North Las Vegas, Nevada | 3.91 | 4.55 | 4.50 | 5.84 | 3.24 | 4.45 | 4.11 | 9.04 | 39.63 |
46 | Chula Vista, California | 5.29 | 2.12 | 2.66 | 8.29 | 1.62 | 2.57 | 6.95 | 9.14 | 38.65 |
47 | Cleveland, Ohio | 6.55 | 5.81 | 5.63 | 3.03 | 0.00 | 3.77 | 4.87 | 8.98 | 38.64 |
48 | Newark, New Jersey | 8.74 | 4.24 | 3.11 | 3.78 | 1.22 | 4.45 | 3.89 | 9.11 | 38.53 |
49 | Stockton, California | 5.06 | 3.69 | 5.22 | 5.82 | 3.38 | 2.11 | 4.44 | 8.81 | 38.53 |
50 | Bakersfield, California | 4.25 | 3.89 | 5.39 | 6.00 | 3.51 | 1.73 | 4.57 | 8.61 | 37.97 |
The Top 10 Cities to Start Your Own Business
The best cities for new businesses tend to be in the South and Midwest, our research found. But no matter where they are located, each of the cities in our top 10 has attributes that make them great locations for aspiring business owners.
1. Miami, FL
Score: 52.13
This vibrant metropolis combines the perks of big-city life, such as an exciting food and nightlife scene and renowned museums and art galleries, with beautiful beaches and warm, sunny weather. Miami’s population has increased steadily in recent years, making it one of the fastest growing cities in the country. And tourists from around the world flock to this oceanside oasis. In short, there are endless opportunities — and customers — for new business owners in Miami.
In SoFi’s analysis, Miami received top scores for new business applications and the number of self-employed individuals. It also rated highly for walkability and its large working-age population. Not only that, prospective business owners in Miami may be able to take advantage of small business grants in Florida that can help with start-up costs.
2. Minneapolis, MN
Score: 51.13
With its friendly midwestern vibe and cosmopolitan charm, Minneapolis has been experiencing population growth since the pandemic. Despite the cold winters, residents say it offers a good quality of life, access to nature, sporting events, arts and culture, and more. The city is also seeing a surge in new housing and economic development.
In the SoFi study, Minneapolis received a top score for its large working-age population. It also got high marks for the number of self-employed residents and the city’s walkability. Another potential selling point for entrepreneurs: The state of Minnesota works to cultivate small businesses, offering assistance and partnerships through its Office of Small Business and Innovation.
3. Atlanta, GA
Score: 50.30
Atlanta is another one of the fastest-growing metro areas in the country, according to Census Bureau data. The city has seen a boom in businesses opening and relocating there, from major corporations to smaller companies. Atlanta’s lifestyle amenities have flourished as well, making the city a draw for its vibrant entertainment offerings, diverse restaurants, and sporting events.
It’s no wonder then that Atlanta has a robust population of working-age individuals, according to SoFi’s research. It also got a high score in our analysis for new business applications. For entrepreneurs, the city has support networks, incentives, and small business loans that make it an appealing place to set up shop.
4. Plano, TX
Score: 48.89
New businesses are popping up across Plano, making it a welcoming community for those ready to launch their own companies. Located less than 20 miles from Dallas, the city is a family-friendly place to live with easy access to a major metro area. People are drawn to Plano’s parks, cultural events, and restaurant offerings — something new business owners can both enjoy personally and benefit from professionally.
SoFi’s research found that Plano has a large working-age population and a high household income. It also ranks near the top of the list for self-employment. Plus, small business grants in Texas can make Plano a good choice for new business owners.
5. St. Louis, MO
Score: 48.48
Located on the Mississippi River and known for its iconic Arch, St. Louis is actively courting new businesses through incentive programs, tax credits, and enterprise zones. The city has a vibrant start-up scene, with business incubators and accelerators. St. Louis, which boasts a diverse culture, historic neighborhoods, and a fairly affordable cost of living, is a top area for job growth, according to recent data from the Federal Reserve Bank of St. Louis.
Indeed, SoFi’s report found that St. Louis gets high marks for its large working-age population, self-employment score, and household income.
6. St. Paul, MN
Score: 48.06
The state capital of Minnesota, and the other half of the famed “Twin Cities” (along with Minneapolis, the Number 2 city on our list), St. Paul is a mid-sized metropolis with a youthful vibe. There are a number of colleges and universities here, giving the city’s employers access to skilled graduates. In our research, the city ranked high for its large working-age population. In addition, St. Paul offers a number of resources for new businesses, including financial and technical assistance.
7. Orlando, FL
Score: 48.01
Home to Disney World and Universal Studios, among many other theme parks, Orlando is not only a coveted tourist destination but also a cosmopolitan city with a strong arts and cultural scene, good restaurants, and a bustling nightlife.
It also has a variety of employment opportunities to attract workers: Orlando is filled with big companies, such as AAA and Darden Restaurants, and it’s a growing technology hub. As a result, the city has a large working-age population, according to SoFi’s analysis. Orlando is welcoming to new businesses and offers many incentives to entrepreneurs.
8. St. Petersburg, FL
Score: 47.97
This Gulf Coast city is so beloved for its weather that it’s known as Sunshine City. St. Pete is appealing to employees and business owners alike for its working and lifestyle opportunities. Here, you’ll find pristine sand beaches and a walkable city with a dynamic business community. Companies like Raymond James and HSN are located in the city, as are a growing number of new businesses.
St. Petersburg has a booming working-age population and it scores high marks in self employment, the SoFi report found. It also offers tax benefits and incentives to new businesses.
9. Madison, WI
Score: 47.34
This state capital was recently rated the sixth best city in the U.S. to live in by U.S. News & World Report, thanks to its quality of life. Madison has a hot job market and it’s a hub for companies in technology, healthcare, and manufacturing. As a college town — the University of Wisconsin-Madison — it also has a diverse population and a dynamic downtown filled with boutiques, restaurants, bars, and coffee shops.
In SoFi’s report, the city rated highly for its working-age population. The unemployment rate in Madison is fairly low, which also makes it desirable. The city offers programs to help small businesses start and succeed, and there are small business grants in Wisconsin entrepreneurs can explore.
Recommended: Unemployment Rates by City
10. Irving, TX
Score: 46.97
Located near Dallas, Irving combines urban amenities with a suburban feel. It has many perks of city living, such as live music venues, ballet and symphony, art, movie theaters, and restaurants. For nature lovers, Irving has a number of rivers and lakes weaving through it, along with parks and nature trails.
Irving’s economy is strong — major corporations in industries such as technology, finance, and consumer goods are located there. SoFi’s research found that the city has a large working-age population, which can be beneficial to new business owners. Irving also offers incentives and resources for small businesses.
Tips for Small Business Owners
If you’re ready to start a small business, these are some important steps to take to help your venture become a success.
• Choose the right location for your business.
Do your research to pick an area that best suits your business needs. Consider whether the area has the type of customer you’re targeting, a robust workforce, and real estate and operating costs you can afford.
• Check out local resources, networks, and programs.
Does the location you’re considering offer incentives and tax credits for new and/or small businesses? The cities on our list do, as do many others. Be sure to check with the chamber of commerce, the city’s SBA office, if there is one, and local economic development centers and business incubators.
• Find the right financing.
The city or state may offer grants or funding for new businesses — do your homework to find out if they do. Also investigate grants and funding programs from the SBA.
As you’re seeking financing for your small business, you may also want to consider a loan to help get your venture off the ground.
When you’re looking for a loan for your new business, SoFi can help. On SoFi’s marketplace, you can shop top providers to access the capital you need. Find a personalized small business loan option today within minutes.
If you’re seeking financing for your business, SoFi can help. On SoFi’s marketplace, you can shop top providers today to access the capital you need. Find a personalized business financing option today in minutes.
With SoFi’s marketplace, it’s fast and easy to search for your small business financing options.
Methodology
To determine the best cities to start a business, SoFi looked at the largest 50 cities across the U.S. with populations of 500,000 or less. (“Population” refers to the city proper and is separate from surrounding urban areas.) SoFi analyzed eight key contributing factors, each assessed on a 10-point scale, in each city for an overall potential score of 80. These factors included:
Walkability
Walkability was determined by reviewing statistics from Walk Score, which were given on a scale of zero to 100. The higher the Walk Score, the higher a city’s walkability score.
Cost of Living
Using Area Vibes, SoFi reviewed the cost of living score — an index score compared to the national average. The lower the cost of living score in a city, the better the score we assigned.
Average Cost of Office Space
Using LoopNet, SoFi assessed all 50 cities using the following filters:
• Type of space needed: office, retail, or restaurant
• Number of employees: 10 (which equaled 1250 to 4000 sq. ft. of space)
SoFi averaged the price per square foot per year for the newest 10 results in each city. The higher the average cost, the lower the score.
Median Household Income
Using Data USA, SoFi assessed the median household income for each city. The higher the median income, the higher the score.
Unemployment Rates
Using Area Vibes, SoFi assessed the unemployment rate for each city. The lower the unemployment rate, the better the score.
Annual Business Applications
Using Census Burea data SoFi calculated the percentage of people who applied for a small business loan in the county where each city is located. The higher the percentage of new business applications, the higher the score.
Percentage of Self-Employed People
Using Census Burea data, SoFi calculated the percentage of people in each city who had self-employment income. The higher the percentage, the higher the score.
Working-Age Population
Using Census Burea data, SoFi calculated the percentage of people in each city who were between the ages of 15 and 64. The higher the percentage, the higher the score.
SoFi’s marketplace is owned and operated by SoFi Lending Corp. See SoFi Lending Corp. licensing information below. Advertising Disclosures: SoFi receives compensation in the event you obtain a loan through SoFi’s marketplace. This affects whether a product or service is featured on this site and could affect the order of presentation. SoFi does not include all products and services in the market. All rates, terms, and conditions vary by provider.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
SOSMB-Q324-018
Source: sofi.com
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Interest rates on personal loans have steadily increased since early 2022, coinciding with the Federal Reserve’s efforts to curb inflation by raising the federal funds rate.
But anticipated Fed rate cuts before the end of this year may not bring personal loan rates down right away.
“Typically, we don’t see personal loan rates drop as a result of those rates dropping,” said Jean Hopkins, director of consumer lending at WeStreet Credit Union in Tulsa, Oklahoma.
Changes to the federal funds rate have a greater impact on variable-rate credit products, such as credit cards or home equity lines of credit, she said. Personal loan rates, on the other hand, are driven by larger economic factors, such as inflation and unemployment.
Your exact personal loan rate is most influenced by your creditworthiness and income. If you’re planning to borrow this year, here are a few things you can do to get a low rate on a personal loan.
Maintain a high credit score
Lenders rely heavily on credit scores to determine how likely an applicant is to repay a loan. Generally, those with high scores get the lowest rates.
“If you have a high credit score, banks think that you’re a good risk to take,” says Spencer Betts, certified financial planner at Massachusetts-based Bickling Financial Services.
He says borrowers should check their credit report before applying for a personal loan and take note of any past-due credit accounts or accounts you don’t recognize, which could indicate identity theft.
Potential borrowers looking to maintain or boost their credit scores should make on-time payments toward credit cards and other loans, Hopkins says, because payment history is the most important factor in your credit score calculation. She also says borrowers should maintain a low credit utilization, which is the percentage of available credit you’ve used on revolving accounts like credit cards.
“Make sure if you’re borrowing money on credit cards that you’re not borrowing more than, say, 30% or 40% of your balance on that line of credit,” she says.
Keep a low debt-to-income ratio
Another factor lenders consider when underwriting a personal loan is the percentage of your monthly income that goes toward debt payments.
“You want to make sure your debt-to-income ratio is low,” says Jen Hemphill, a Kansas-based accredited financial counselor and host of the Her Dinero Matters podcast. “The lower it is, you’re going to have a better chance of a lower interest rate.”
Debt-to-income ratio, or DTI, is calculated by dividing your total monthly debt payments by your monthly income. Multiply that figure by 100 to get the ratio expressed as a percentage. Hemphill suggests keeping your DTI around 30% or less, though some lenders will accept higher ratios.
If your DTI is high, consider paying down debt before applying for a personal loan for a chance at a better rate.
Hopkins suggests paying off smaller debts first to quickly eliminate those monthly payments and consequently lower your DTI.
Raising your income — which would also lower your DTI — may be a difficult task, but be sure to include all sources of income on a loan application. Many lenders count alimony, child support and Social Security payments when calculating DTI. You might even be able to include a partner’s salary as household income.
Compare offers to find the best deal
When you’re preparing to apply for a personal loan, it pays to compare offers from multiple lenders. Each lender has its own qualification requirements and underwriting process, so you could get a different APR from one lender to the next.
You can compare costs by pre-qualifying online. This process lets you preview your potential APR, monthly payment, loan amount and repayment term with only a soft credit pull, so your credit scores won’t be affected.
Pre-qualifying gives you “an idea of what interest rates are available for you based on your own situation,” Hemphill says. “That helps you shop around.”
She suggests paying special attention to the repayment terms you’re offered and how they affect the amount of interest you’ll pay over the life of the loan. Long terms may be appealing because they lower your monthly payment, she says, but they increase the total cost of the loan.
You can use a personal loan calculator to see how the given loan amount, term and interest rate affect monthly payments and interest costs.
If you have two competitive loan offers, compare perks and features to determine which is the right fit for your plans, Hemphill says. For example, some lenders provide a rate discount for setting up autopay or for having the lender directly pay off your other debts when you get a debt consolidation loan. Others may provide credit-building assistance so you can boost your score while you repay the loan.
Source: nerdwallet.com
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Thinking of making Oklahoma your new home? While it might not have the fast-paced vibe of larger metropolitan areas or the extensive cultural districts of other states, Oklahoma has its own distinctive appeal. Whether you’re considering homes for sale in Oklahoma City, exploring rental options in Tulsa, or looking at houses for rent in Norman, here’s what you need to know before making the move to Oklahoma.
Oklahoma at a glance
Oklahoma provides a distinct lifestyle shaped by its diverse landscapes and communities. While its cities may be smaller compared to major urban centers elsewhere, they have a lot to offer. Oklahoma City, the state capital and one of its largest cities, combines a rich history with modern amenities, while Tulsa, known for its vibrant arts scene and historic architecture, serves as a cultural hub. Norman, home to the University of Oklahoma, adds an energetic college-town vibe to the mix, making these cities some of the best places to live in Oklahoma.
The state’s landscapes are equally captivating. Oklahoma features a varied terrain that includes rolling prairies, lush forests, and dramatic mesas. The Wichita Mountains and the serene waters of the Great Salt Plains offer countless options to explore.
Life in Oklahoma is often characterized by a slower pace that allows residents to enjoy a balanced lifestyle. Activities like hiking, fishing, and exploring state parks are popular, reflecting the state’s commitment to embracing its natural surroundings.
1. The weather can be extreme
When considering living in Oklahoma, it’s essential to be prepared for its diverse and sometimes extreme weather conditions. The state experiences hot, humid summers with temperatures often soaring above 90°F, while winters are relatively mild but can occasionally see temperatures drop below freezing. Oklahoma is located in Tornado Alley, making it particularly prone to severe thunderstorms and tornadoes, especially during the spring months when conditions are ripe for these natural disasters.
Insider tip: Invest in a reliable weather radio and familiarize yourself with local storm shelters and emergency procedures. Many communities offer storm preparedness classes that can help you stay safe and informed during severe weather events.
2. Oklahoma is an affordable state to live in
The cost of living in Oklahoma varies significantly across different cities, but remains relatively low. Oklahoma City has a median home sale price of around $262,000 and a median monthly rent for a one-bedroom apartment at $1,011. In contrast, Tulsa, located in northeastern Oklahoma, offers a more affordable lifestyle with a median home sale price of $250,000 and median rent of around $912.
If you’re planning a move to Oklahoma, it’s important to weigh the pros and cons to ensure that this state aligns with your needs and preferences.
3. There’s plenty to do throughout the state
There are many fun activities and attractions for newcomers to explore and enjoy throughout the state. If you love nature, get ready to enjoy the beauty of the state’s diverse landscapes, from hiking and rock climbing in the Wichita Mountains to kayaking on Lake Texoma.
You can immerse yourself in the state’s vibrant cultural scene by attending annual events like the Oklahoma State Fair in Oklahoma City, which features rides, concerts, and food stalls, or the Red Earth Festival in Norman, celebrating Native American arts and traditions. Additionally, the state’s diverse landscapes invite exploration, from the scenic Turner Falls Park in Davis to the historic Route 66 landmarks scattered across the state.
4. Fried food and bbq are staples here
Oklahoma’s cuisine is a delicious reflection of its cultural diversity and Southern roots, offering a rich array of flavors that anyone moving to the state will surely appreciate. The culinary scene is renowned for its hearty, down-home dishes, with barbecue being a standout favorite—think tender smoked meats slathered in tangy sauces. Fried foods, such as catfish, okra, and pies, are other staples, showcasing the state’s comfort food traditions.
Insider scoop: For an authentic experience, visit local barbecue joints like Leo’s Barbeque in Oklahoma City, where you can savor some of the best smoked brisket and ribs in the state.
5. You’ll want a car to travel
Understanding transportation options in Oklahoma is crucial for anyone considering a move to the state. Major cities like Oklahoma City and Tulsa offer public transportation systems, but with a transit score of 23, you’ll need a car to get around. However, the transit systems in place may not cover more rural areas or smaller towns, making a personal vehicle often essential.
6. Cowboy culture runs deep here
Oklahoma proudly claims the title of “Home of the Cowboy” due to its deep-rooted history in cattle ranching and Western culture. The state’s vast open plains and rich grazing lands made it an ideal location for cattle ranching during the late 19th and early 20th centuries. This era, known for the iconic cattle drives and the expansion of ranching operations, deeply influenced the state’s cultural identity.
Oklahoma’s cowboy legacy is celebrated through numerous events, such as rodeos and cowboy-themed festivals, and is vividly represented at institutions like the National Cowboy & Western Heritage Museum in Oklahoma City.
Insider scoop: For an authentic taste of cowboy culture, attend the annual Hoofs & Horns Spectacular in September, where you can experience thrilling rodeo events, live music, and a true celebration of Western heritage.
7. Oklahoma has high sales tax rates
Oklahoma boasts some of the highest average local sales tax rates in the nation, which notably affects the cost of goods and services for its residents. In many areas, the combined state and local sales tax rates can surpass 8%. This elevated tax rate is an important factor for those living in or moving to Oklahoma, as it can impact both personal finances and business expenses.
Methodology
Population data sourced from the United States Census Bureau, while median home sale prices, average monthly rent, and data on affordable and largest cities are sourced from Redfin.
Source: rent.com
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Oklahoma City, or OKC as the locals call it, is a city full of surprises. Known for its welcoming community, diverse job market, and rich cultural offerings, it’s no wonder the city has seen a surge in new residents. But moving here isn’t without its challenges. From unpredictable weather to a fast-paced housing market, there are a few things you need to know before making the move. Not sure if The 405 is for you? Read on to find out what to expect if you’re considering a move to the Oklahoma City area in 2024.
You know it from: Thunderstruck, Twister, Musical Drama
Average 1 bedroom rent: $1,035 | OKC apartments for rent, OKC houses for rent
Average home price: $646,000 | OKC homes for sale
Average cost of full-service moving services: $147/hr for 2 movers
Average cost to rent a moving truck: $19 – $39/day
Top industries: Aviation, Biotechnology, Energy
Move here for: The people, low rent, and excellent BBQ
Be sure to bring: A raincoat and a good weather app
1. The weather is as unpredictable as it gets
Oklahoma City weather is a rollercoaster. Summers are scorching with temperatures often exceeding 100°F, while winters can surprise with sudden ice storms. Severe thunderstorms and tornadoes are part of life here, especially in the spring. Be prepared for seasons that sometimes seem to change within a single day.
Moving Tip: You’ll get accustomed to keeping a close eye on the weather but investing in a good weather app is a must.
2. Cost of living is affordable, but housing moves fast
Oklahoma City is one of the more affordable metro areas in the U.S., with a cost of living nearly 15% below the national average. However, the housing market is hot. Homes and apartments often get snapped up quickly, especially in popular neighborhoods like Nichols Hills and Paseo. For renters and buyers alike, it’s crucial to act fast if you find something you love.
3. The job market is diverse and growing
The job market in OKC is booming, especially in sectors like energy, aerospace, and healthcare. Tinker Air Force Base is one of the largest employers, providing thousands of jobs. With a relatively low unemployment rate, the city offers plenty of opportunities for career growth. However, some industries are more competitive than others, so it’s essential to research before making the move.
4. Bricktown is the entertainment hub
Bricktown is the heart of Oklahoma City’s nightlife and entertainment. From catching a minor league baseball game at Chickasaw Bricktown Ballpark to enjoying live music along the canal, there’s always something happening. The area is also home to some of the city’s best restaurants and bars, making it a go-to spot for both locals and visitors. Just be ready for the crowds, especially on weekends.
5. Traffic is surprisingly manageable
For a city of its size, Oklahoma City’s traffic is relatively mild compared to other major metros. The city’s grid layout and wide streets help keep things moving. While rush hour can slow you down, it’s nothing compared to places like Dallas or Houston. Interstate 35 can get congested during peak times, but overall, getting around is a breeze.
6. Parks and outdoor spaces are everywhere
Oklahoma City is home to over 170 parks, offering plenty of green space for recreation. The 17-acre Myriad Botanical Gardens in downtown is a favorite for both relaxation and events. For those who enjoy water activities, Lake Hefner is a hotspot for sailing, fishing, and picnicking. The city’s commitment to expanding its park system is evident, making it a great place for outdoor enthusiasts.
7. A growing food scene with local flair
Oklahoma City’s food scene is on the rise, with an emphasis on local and farm-to-table options. Whether you’re craving barbecue, Tex-Mex, or something more eclectic, the city has you covered. The Plaza District and Midtown are popular dining destinations, offering a mix of trendy eateries and established favorites. Don’t leave without trying a fried onion burger, a local specialty.
8. Public transportation is improving but still car-dependent
While the city has made strides in public transportation with the EMBARK bus system and the downtown streetcar, OKC is still largely car-dependent. Most residents rely on their vehicles to get around, as public transit options are limited in coverage and frequency.
Moving Tip: If you plan to live here, having a car will make life much easier, especially outside of the downtown area.
9. The arts and culture scene is underrated
Oklahoma City’s arts and culture scene is diverse and growing. The Oklahoma City Museum of Art houses an impressive collection, including a stunning exhibit of Dale Chihuly glass. The Paseo Arts District is a vibrant community of galleries, studios, and festivals. The city’s Western heritage is celebrated at the National Cowboy & Western Heritage Museum, a must-visit for history buffs.
10. Sports are a big deal
Oklahomans are passionate about their sports, and Oklahoma City is no exception. The city is home to the NBA’s Oklahoma City Thunder, and game nights at the Paycom Center are electric. College football is another major draw, with fans loyally supporting the University of Oklahoma and Oklahoma State University. Whether you’re a die-hard fan or a casual observer, sports culture is hard to miss here.
11. Tornado preparedness is a way of life
Living in OKC means accepting the reality of tornadoes. The city is located in Tornado Alley, and severe weather is most common from April to June. Residents take tornado preparedness seriously, with many homes equipped with storm shelters. Local news stations provide excellent weather coverage, ensuring you’re informed and ready to take action if needed.
12. The city is spread out
Oklahoma City is one of the largest cities in the U.S. by land area, meaning it’s spread out and often feels suburban. While this gives residents plenty of space, it also means that getting from one part of the city to another can take time. Neighborhoods like Edmond and Yukon are technically part of the metro area but can feel like separate towns due to the distance.
13. A tight-knit community with a small-town feel
Despite its size, OKC has a close-knit community vibe. The city’s residents are known for their friendliness and hospitality. Whether you’re at a neighborhood event or grabbing a coffee at a local shop, you’re likely to strike up a conversation with a stranger. This sense of community makes the city feel more like a small town, which can be a refreshing change from larger urban centers.
14. Oklahoma City loves its festivals
From the Oklahoma State Fair to the Festival of the Arts, there’s no shortage of events in Oklahoma City. The city’s festival calendar is packed year-round, celebrating everything from food and music to arts and culture. The annual Red Earth Festival is a standout, showcasing Native American art and traditions. These events are a great way to experience the local culture and meet new people.
15. Rapid development and growth
Oklahoma City is growing rapidly, with new developments popping up all over the metro area. The downtown area has seen significant revitalization, with new apartments, offices, and attractions being built. This growth brings excitement but also challenges, such as increased traffic and rising housing costs. Staying informed about new projects and changes in the city will help you navigate the evolving landscape.
Methodology: Average rent prices sourced from Rent.com August 2024. Home prices sourced from Redfin August 2024. Average moving costs sourced from MoveBuddha. Employment data sourced from Greater Oklahoma City Chamber.
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The outlook for first-time home buyers in the US may seem bleak with high borrowing costs, home prices, and inflation. This may lead many prospective buyers to continue renting, as it’s generally seen as more affordable. But is renting truly the most cost-effective option? We crunched the numbers and found that in several cities across the US, it is still possible to achieve your homeownership dreams without depleting your savings. In some cities, it’s even possible to transition from renting to owning while saving money in the process.
Zoocasa analyzed data for 111 markets across the US and compared monthly rental prices and monthly mortgage payments for the median single-family home in each. Additional costs for each were not considered, such as utilities or property taxes. Rental price numbers were sourced from Zumper’s June national rent report, while the monthly mortgage payments were calculated using Nerd Wallet’s Mortgage Payment Calculator assuming an 8% down payment, a 30-year amortization, and a fixed rate of 6.78%. According to the National Association of Realtor’s 2023 Profile of Home Buyers and Sellers, the typical down payment for first-time buyers was 8%. Median single-family home prices were sourced from the National Association of Realtors.
In the majority of cities analyzed, renters transitioning to homeownership will face higher monthly mortgage payments compared to the average rent for a 2-bedroom apartment. However, there are 12 cities where homeownership is more affordable than renting.
New York, NY has the largest gap between monthly rent and mortgage payments at $781, but it also has some of the highest average rents and mortgage payments in the country, making it a challenging city for both renters and buyers.
Pittsburgh, PA, and Syracuse, NY are two more affordable cities for first-time home buyers thanks to their low median home prices. In Pittsburgh, the monthly cost of renting a 2-bedroom apartment is $1,550 while the average monthly mortgage payment is $1,240, a $310 difference. Similarly, in Syracuse, the monthly cost of renting a 2-bedroom apartment is $1,500, while the average monthly mortgage payment is $310 lower at $1,190.
The least expensive mortgage payments can be found in Peoria, IL, and South Bend, IN, with monthly mortgage payments of $761 and $1,077, respectively. The difference between monthly rent and mortgage payments is greater in Peoria, where the monthly mortgage payment is $289 lower. In South Bend, the difference is much smaller, at just $55.
The six other cities where owning is more affordable than renting are Chicago, Rochester, Miami, Cleveland, Charleston, Buffalo, and New Orleans. Among these, Cleveland has the lowest median single-family home price at $191,900, bringing the average monthly mortgage payment to $1,149. In comparison, renting a 2-bedroom apartment in Cleveland would cost $1,250, which is about $100 more than the monthly mortgage payment.
Although buying is more expensive than renting in most U.S. cities, the difference is relatively minor in 48 cities, where the gap between rent and mortgage is less than $500. This includes cities such as San Antonio, Nashville, and Arlington. First-time home buyers in cities like Atlanta, Louisville, and Dallas will have an even easier time transitioning from renting to buying, with the difference between monthly rent and mortgage payments being under $300. By budgeting accordingly, first-time buyers can find that investing an extra few hundred dollars a month in homeownership can be a worthwhile and feasible decision.
However, a more affordable home doesn’t necessarily mean an easier transition from renting to owning. Many cities with low single-family home prices still have significant gaps between the average monthly mortgage payment and the average monthly rent. For example, in Green Bay, WI, the median single-family home price is $288,000, resulting in an average monthly mortgage payment of $2,447. Meanwhile, the average monthly rent for a 2-bedroom apartment in Green Bay is just $1,094, which is $1,353 lower than the mortgage payment.
Similarly, Abilene, TX, Columbia, SC, and Bloomington, IL have median single-family home prices under $300,000 but a gap of more than $800 between the monthly mortgage and monthly rental payments. Prospective first-time buyers in these cities may find it easier to start by investing in a condo or townhouse, allowing them to build equity before moving into a larger home.
In many cases, first-time home buyers will face greater challenges in cities where the monthly mortgage payments exceed rent by more than $1,000. In Colorado Springs, San Diego, San Francisco, Anaheim, and San Jose, the challenge is even greater as the gap between monthly rent and the monthly mortgage payment is over $2,000.
Cities like Pensacola and Las Vegas, which are popular among tourists and retirees, have significant gaps between rental and homeownership costs. The influx of retirees and tourists likely drives up property values disproportionately compared to rental rates. Prospective first-time home buyers in these cities may want to consider more affordable locations within their state, such as Jacksonville, or Henderson, where the difference between monthly mortgage and rental costs is under $1,000. This move could make the transition from renting to owning more manageable.
First-time home buyers who are determined to live in less affordable cities may want to consider making a larger down payment. This strategy can save hundreds of dollars each month and make homeownership more financially manageable in the long run.
For example, if a first-time home buyer put down 15% in Phoenix, instead of 8%, the monthly mortgage payment would lower from $1,166 to $952. In Atlanta and St. Louis, the impact of a larger down payment is even more significant. With an 8% down payment, monthly mortgage payments in both cities are higher than rent. However, with a 15% down payment, the monthly mortgage payments in Atlanta and St. Louis drop below the average monthly rent, making homeownership more affordable.
By strategically selecting an affordable location or diligently saving for a larger down payment, first-time home buyers can significantly improve their chances of achieving their homeownership goals.
Do you have questions about entering the real estate market? Give us a call! Our experienced real estate agents will help you navigate the market to find the right home for you.
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Source: zoocasa.com
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Rising prices and inflation are driving worries that money doesn’t go as far as it used to. But rest assured that $120,000 is considered a good salary, especially if you’re single and have no dependents. And by developing sound money habits now, you can help make the most of your income, no matter what it is.
Here’s a closer look at an annual salary of $120,000.
Is $120K a Good Salary?
A salary of $120,000 is nearly double the national average salary in the U.S. of $63,795, per the latest data available from the Social Security Administration. But how comfortably you’re able to live on that money depends on a number of factors, including how much debt you have, your family size, and how much your lifestyle costs in the area where you live.
A money tracker can help you with budgeting, monitoring spending, and keeping tabs of your credit score.
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Average Median Income in the US by State in 2024
The average pay for a worker in the U.S. varies by state, though no state comes close to $120,000. For reference, here’s a chart of the median household income in each state, according to the U.S. Census Bureau.
State | Median Household Income |
---|---|
Alabama | $59,609 |
Alaska | $86,370 |
Arizona | $72,581 |
Arkansas | $56,335 |
California | $91,905 |
Colorado | $87,598 |
Connecticut | $90,213 |
Delaware | $79,325 |
Florida | $67,917 |
Georgia | $71,355 |
Hawaii | $94,814 |
Idaho | $70,214 |
Illinois | $78,433 |
Indiana | $67,173 |
Iowa | $70,571 |
Kansas | $69,747 |
Kentucky | $60,183 |
Louisiana | $57,852 |
Maine | $68,251 |
Maryland | $98,461 |
Massachusetts | $96,505 |
Michigan | $68,505 |
Minnesota | $84,313 |
Mississippi | $52,985 |
Missouri | $65,920 |
Montana | $66,341 |
Nebraska | $71,772 |
Nevada | $71,646 |
New Hampshire | $90,845 |
New Jersey | $97,126 |
New Mexico | $58,722 |
New York | $81,386 |
North Carolina | $66,186 |
North Dakota | $73,959 |
Ohio | $66,990 |
Oklahoma | $61,364 |
Oregon | $76,362 |
Pennsylvania | $73,170 |
Rhode Island | $81,370 |
South Carolina | $63,623 |
South Dakota | $69,457 |
Tennessee | $64,035 |
Texas | $73,035 |
Utah | $86,833 |
Vermont | $74,014 |
Virginia | $87,249 |
Washington | $90,325 |
West Virginia | $55,217 |
Wisconsin | $72,458 |
Wyoming | $72,495 |
Related: Highest Paying Jobs by State
Average Cost of Living in the US by State in 2024
The average cost of living in the U.S. will affect how you feel about your $120,000 salary. And, like salary, it varies by state. Here’s a look at what a typical resident in each state spends on basic necessities, such as housing, food, and transportation.
State | Personal Consumption Expenditure |
---|---|
Alabama | $42,391 |
Alaska | $59,179 |
Arizona | $50,123 |
Arkansas | $42,245 |
California | $60,272 |
Colorado | $59,371 |
Connecticut | $60,413 |
Delaware | $54,532 |
Florida | $55,516 |
Georgia | $47,406 |
Hawaii | $54,655 |
Idaho | $43,508 |
Illinois | $54,341 |
Indiana | $46,579 |
Iowa | $45,455 |
Kansas | $46,069 |
Kentucky | $44,193 |
Louisiana | $45,178 |
Maine | $55,789 |
Maryland | $52,651 |
Massachusetts | $64,214 |
Michigan | $49,482 |
Minnesota | $52,849 |
Mississippi | $39,678 |
Missouri | $48,613 |
Montana | $51,913 |
Nebraska | $37,519 |
Nevada | $49,522 |
New Hampshire | $60,828 |
New Jersey | $60,082 |
New Mexico | $43,336 |
New York | $58,571 |
North Carolina | $47,834 |
North Dakota | $52,631 |
Ohio | $47,768 |
Oklahoma | $42,046 |
Oregon | $52,159 |
Pennsylvania | $53,703 |
Rhode Island | $52,820 |
South Carolina | $46,220 |
South Dakota | $48,997 |
Tennessee | $46,280 |
Texas | $49,082 |
Utah | $48,189 |
Vermont | $55,743 |
Virginia | $52,057 |
Washington | $56,567 |
West Virginia | $44,460 |
Wisconsin | $49,284 |
Wyoming | $52,403 |
Source: U.S. Bureau of Economic Analysis
How to Live on a $120K Salary
Chances are, $120,000 can easily cover an individual’s basic expenses with some money left over for entertainment and saving. But if you live in a pricey area or are trying to pay down debt, you may need to be more mindful about how you’re managing your money. The following tips can help.
Live below your means
You‘ve heard it before, but the most important part of living well at your salary is to make sure your expenses are less than your salary. Try to find housing and transportation that fits within your budget, use a budget to plan for expenses, and manage lifestyle creep as much as you can.
Have a contingency fund
Be sure you’re planning for the unexpected. Building an emergency fund can go a long way toward preserving your finances when tough times come.
Make a plan for your money
Making a budget — yes, even on a $120,000 annual salary — can help you use your money more effectively and make progress toward financial goals.
How to Budget for a $120K Salary
There are a number of budgeting methods you may want to try.
• 50/30/20 method: With a 50/30/20 budget, 50% of your money should go toward needs (housing, transportation, food, etc.); 30% to wants (spending money, self-care, eating out, and vacations); and 20% to savings and debt payments.
• Zero-based budgeting: In this type of budgeting, you give a job to every dollar you earn so that your income minus your expenses ends at zero.
• Envelope method: You specify how much money is allotted to a specific category; say, $300 for gas for the month. You can spend the designated funds until they’re gone. If you’re really disciplined, you won’t spend in that category again until the next month, when the money in the envelope is refreshed.
Of course, the best budget is the one you will follow. A budget planner app can help you stay on track and reach your goals.
Maximizing a $120K Salary
Making the most of a $120,000 salary depends on what your financial goals are and your stage of life. Do you want to:
• Save more money?
• Grow your net worth?
• Provide for a family?
• Enjoy eating out and/or nightlife?
• Afford a nice car and house?
To maximize a $120,000 salary, invest in the areas of your life that are important to you. Make a plan to spend money according to your values and be more frugal in the areas that are not as important to you.
Quality of Life with a $120K Salary
According to the World Health Organization, quality of life is about a person’s perception of their culture and value systems in relation to their goals, concerns, expectations, or standards. Translation: Your quality of life on a $120,000 salary may depend, in large part, on your perception of how good it is. If you’re able to feel optimistic with the amount of money you have, you’ll likely have a good quality of life.
Is $120,000 a Year Considered Rich?
Yes, $120,000 is a six-figure salary — and a good one for a single person — but is it enough to qualify you as “rich”? The truth is, rich is a relative term. Living well depends on how satisfied you are with your lifestyle and how much you’re able to save for a future self.
Recommended: How to Calculate Your Net Worth and Wealth
Is $120K a Year Considered Middle Class?
Middle class is determined by incomes that range from two-thirds to double the median income. It is also adjusted for family size. In the U.S., the median income is $74,580, which puts the range for the middle class between $49,745 and $149,160.
However, when adjusting for family size, a $120,000 salary for a single person puts you squarely in the upper class in every metro area in the United States.
Example Jobs that Make About $120,000 a Year Salary
According to data from the U.S. Bureau of Labor Statistics (BLS), there are a number of occupations whose salaries sit at or above $120,000 — some which could be a good fit for introverts.
Some examples include:
• Software Developer: $132,270
• Physician Assistant: $130,020
• Nurse Practitioner: $126,260
• Information Security Analyst: $120,360
• Actuary: $120,000
Recommended: What Is a Good Entry-Level Salary?
The Takeaway
Is $120,000 a good salary for a single person? Generally speaking, yes. It’s more than what a typical American worker earns and, depending on where you live, can provide you with a comfortable life. But even with a six-figure salary, you may want to consider ways to maximize your money. Sound financial habits like building up an emergency fund, saving for short- and long-term goals, and creating a budget are all good places to start.
Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.
See exactly how your money comes and goes at a glance.
FAQ
Can I live comfortably making 120k a year?
Living comfortably on $120K a year depends on various factors, such as where you live, how much debt you have, your family size, and how you live. Many singles will find $120K enough to live on in many areas of the country, but may need to be more mindful about their spending if they live in pricier areas like Los Angeles or New York City.
What can I afford with a $120K salary?
If you’re looking to buy a home with a $120K salary, your best bet is to talk to a lender and run some numbers. In addition to your income, your level of debt, down payment amount, loan type, and interest rate can all impact how much house you can afford. For a rough estimate, a 120K salary would give you $10,000 of gross income each month, which would mean you’re looking at a mortgage payment between $2,500 and $3,600 if you have no other debt. With interest rates at 7.00%, that translates to a mortgage of around $415,000.
How much is $120K a year hourly?
A $120K salary comes out to approximately $57.69 per hour.
How much is 120K a year monthly?
A salary of $120,000 per year works out to roughly $7,706 per month, after federal income taxes are taken out.
How much is $120K a year daily?
If you earn $120,000 per year, you would be paid around $462 per day.
Photo credit: iStock/Delmaine Donson
SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.
*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
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Oklahoma is a state that beautifully blends Native American heritage, cowboy culture, and modern urban attractions. From the bustling streets of Oklahoma City to the tranquil beauty of the Wichita Mountains, Oklahoma offers a unique mix of experiences. But what else is Oklahoma known for? Whether you’re considering renting a home in Tulsa, looking to settle into an apartment in Norman, or just planning a visit, you’ll soon find that Oklahoma has much more to offer than meets the eye. In this article, we’ll explore what makes Oklahoma special and why so many are proud to call it home. Let’s dive in.
1. The Oklahoma State Fair
The Oklahoma State Fair, held annually in Oklahoma City every September, is a cherished event in the state. The fair spans over eleven days and attracts thousands of visitors with its array of attractions and activities. The fairgrounds provide attendees with thrilling amusement rides, from classic Ferris wheels to high-adrenaline roller coasters. Additionally, food is a major highlight, from corn dogs and funnel cakes to unique creations such as deep-fried Oreos and bacon-wrapped turkey legs. Beyond that, the fair has an impressive lineup of live entertainment including live concerts, stunt performances, and magic acts.
2. National Cowboy & Western Heritage Museum
The National Cowboy & Western Heritage Museum in Oklahoma City is a must-visit for anyone interested in the American West. The museum boasts an extensive collection of Western art, artifacts, and exhibits that celebrate cowboy culture. Visitors can see impressive sculptures, paintings, and even life-sized dioramas depicting scenes from the Old West. This museum offers a fun and educational experience, making it a top attraction in the state.
3. Chicken fried steak
Oklahoma’s culinary scene is highlighted by the beloved dish, chicken fried steak. This comfort food classic consists of a breaded and fried beef steak, typically served with creamy gravy and mashed potatoes. It’s a staple at many local diners and restaurants, such as Kendall’s Restaurant in Noble. Praised for its hearty portions and delicious flavor, chicken fried steak represents Oklahoma’s tradition of Southern cooking.
4. Lake Texoma
Lake Texoma is one of the largest reservoirs in the United States. Straddling the Oklahoma-Texas border, this lake offers a wide range of activities such as boating, fishing, and camping. Additionally, Lake Texoma is known for its excellent striper fishing, making it a prime spot for anglers looking to catch trophy-sized fish. The scenic beauty and recreational opportunities make it a favorite spot for locals and adventure seekers alike.
5. Philbrook Museum of Art
The Philbrook Museum of Art in Tulsa showcases an impressive collection of art from around the world. Housed in a stunning Italian Renaissance-style villa, the museum features works by renowned artists such as Pablo Picasso and Georgia O’Keeffe. Also, the beautiful gardens surrounding the museum provide a serene setting for visitors to enjoy.
6. Woody Guthrie Center
If you enjoy folk music, you should visit the Woody Guthrie Center in Tulsa. The museum is dedicated to the life and legacy of folk music legend Woody Guthrie. The center features interactive exhibits, rare recordings, and personal artifacts that tell the story of Guthrie’s impact on American music and culture. Patrons can learn about his famous songs, such as “This Land is Your Land,” and explore his contributions to the folk music movement. The center also hosts live performances and educational events, keeping Guthrie’s spirit alive.
7. Route 66
Often referred to as the “Main Street of America,” Route 66 runs through Oklahoma, making it a key landmark in the state. Travelers can explore charming small towns, quirky roadside attractions, and historic sites along this iconic highway. If you plan on driving Route 66, be sure to check out notable stops including the Round Barn in Arcadia and the Blue Whale in Catoosa. This historic route attracts road trip enthusiasts from around the world, eager to experience a piece of Americana.
Fun facts Oklahoma is famous for
- Birthplace of the shopping cart: The states holds the achievement of being the birthplace of the shopping cart. Sylvan Goldman introduced it in 1937 at his Humpty Dumpty supermarket chain in Oklahoma City.
- The Sooner State: Oklahoma is known as “The Sooner State” because of the early settlers who entered the territory before the official start of the Land Rush of 1889.
- Man-made lakes: With over 200 man-made lakes, this state has more of these lakes than other state in the U.S.
8. Tahlequah and Cherokee Heritage
Tahlequah, the capital of the Cherokee Nation, is rich with Native American history and culture. Visitors can explore the Cherokee Heritage Center, which offers exhibits on the Trail of Tears and traditional Cherokee life. The center also hosts events and demonstrations of traditional crafts, such as pottery and basket weaving. Tahlequah provides a unique opportunity to learn about the Cherokee people’s past and present, making it a culturally significant destination in Oklahoma.
College football is a major part of Oklahoma’s identity, with the University of Oklahoma Sooners and Oklahoma State University Cowboys boasting passionate fan bases. The Bedlam Series, the annual rivalry game between these two teams, is a highly anticipated event that highlights the state’s deep-rooted love for the sport. Both programs have produced numerous NFL stars and Heisman Trophy winners, cementing Oklahoma’s reputation as a powerhouse in college football.
10. Pioneer Woman Mercantile
Owned by celebrity chef Ree Drummond, the Pioneer Woman Mercantile in Pawhuska has become a culinary and shopping hotspot. The mercantile features a bakery, deli, and retail store offering Drummond’s signature recipes and products. Visitors can savor hearty meals, delicious pastries, and browse through a variety of kitchenware and home goods. Because of the charming ambiance and friendly service, the mercantile is a popular destination for fans of Drummond’s cooking show and blog.
11. Beavers Bend State Park
Beavers Bend State Park, located in the southeastern part of the state, is a top destination for nature lovers. This scenic park offers hiking trails, fishing spots, and opportunities for kayaking on the Mountain Fork River. The park is also home to cozy cabins and campsites, providing a perfect getaway for social gatherings and outdoor enthusiasts. With its stunning landscapes and variety of recreational activities, Beavers Bend State Park is a great way to experience the natural beauty of Oklahoma.
12. Oil and energy industry
Oklahoma is widely recognized for its significant contributions to the oil and energy industry. The state is home to major energy companies like Devon Energy and Chesapeake Energy, which play a crucial role in the national economy. Oklahoma’s landscape is dotted with oil rigs and natural gas wells, reflecting its deep history in fossil fuel production. The annual Oklahoma Oil & Gas Expo in Oklahoma City highlights the latest advancements and innovations in the field, attracting professionals and industry leaders from across the country.
Source: rent.com
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If you’re contemplating a job change or angling for a salary increase, you may have questions about whether a $95,000 salary will sustain you. Consider that the typical worker in the U.S. earns around $63,795 a year, according to the Social Security Administration. A $95,000 annual paycheck is nearly 49% higher than that.
Let’s see where you’d fall on the earnings spectrum compared to others in the U.S. and also explore ways to budget a $95,000 annual salary.
Is $95K a Good Salary?
While not quite a six-figure salary, $95K is generally considered a good income for a single person. But whether that amount works for you depends largely on where you live and your personal standards. For example, you may find that a $95,000 salary goes further in Des Moines than Honolulu, which has a higher cost of living.
No matter where you live, a budget planner app can help you set customized budgets and categorize spending, so you can make the most of your income.
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Recommended: Average Salary in the U.S.
Average Median Income in the US by State in 2024
As in real estate, location is an important factor when it comes to salaries. Wages for the same job can vary widely from one state to another, driven largely by differing costs of living.
Here’s a look at the median household income in each state, per U.S. Census Bureau data.
State | Median Household Income |
---|---|
Alabama | $59,609 |
Alaska | $86,370 |
Arizona | $72,581 |
Arkansas | $56,335 |
California | $91,905 |
Colorado | $87,598 |
Connecticut | $90,213 |
Delaware | $79,325 |
Florida | $67,917 |
Georgia | $71,355 |
Hawaii | $94,814 |
Idaho | $70,214 |
Illinois | $78,433 |
Indiana | $67,173 |
Iowa | $70,571 |
Kansas | $69,747 |
Kentucky | $60,183 |
Louisiana | $57,852 |
Maine | $68,251 |
Maryland | $98,461 |
Massachusetts | $96,505 |
Michigan | $68,505 |
Minnesota | $84,313 |
Mississippi | $52,985 |
Missouri | $65,920 |
Montana | $66,341 |
Nebraska | $71,772 |
Nevada | $71,646 |
New Hampshire | $90,845 |
New Jersey | $97,126 |
New Mexico | $58,722 |
New York | $81,386 |
North Carolina | $66,186 |
North Dakota | $73,959 |
Ohio | $66,990 |
Oklahoma | $61,364 |
Oregon | $76,362 |
Pennsylvania | $73,170 |
Rhode Island | $81,370 |
South Carolina | $63,623 |
South Dakota | $69,457 |
Tennessee | $64,035 |
Texas | $73,035 |
Utah | $86,833 |
Vermont | $74,014 |
Virginia | $87,249 |
Washington | $90,325 |
West Virginia | $55,217 |
Wisconsin | $72,458 |
Wyoming | $72,495 |
Recommended: Highest Paying Jobs by State
Average Cost of Living in the US by State in 2024
How much you pay for necessities like housing, transportation, health care, and food can impact just how far your $95,000 salary will go. When figuring out whether $95,000 is a good salary for a single person, it can help to look at how much people in different states are spending on housing, food, health care, and other basics. The U.S. Bureau of Economic Analysis’ (BEA) list of personal consumption expenditures, below, compiles this information.
State | Personal Consumption Expenditure |
---|---|
Alabama | $42,391 |
Alaska | $59,179 |
Arizona | $50,123 |
Arkansas | $42,245 |
California | $60,272 |
Colorado | $59,371 |
Connecticut | $60,413 |
Delaware | $54,532 |
Florida | $55,516 |
Georgia | $47,406 |
Hawaii | $54,655 |
Idaho | $43,508 |
Illinois | $54,341 |
Indiana | $46,579 |
Iowa | $45,455 |
Kansas | $46,069 |
Kentucky | $44,193 |
Louisiana | $45,178 |
Maine | $55,789 |
Maryland | $52,651 |
Massachusetts | $64,214 |
Michigan | $49,482 |
Minnesota | $52,849 |
Mississippi | $39,678 |
Missouri | $48,613 |
Montana | $51,913 |
Nebraska | $37,519 |
Nevada | $49,522 |
New Hampshire | $60,828 |
New Jersey | $60,082 |
New Mexico | $43,336 |
New York | $58,571 |
North Carolina | $47,834 |
North Dakota | $52,631 |
Ohio | $47,768 |
Oklahoma | $42,046 |
Oregon | $52,159 |
Pennsylvania | $53,703 |
Rhode Island | $52,820 |
South Carolina | $46,220 |
South Dakota | $48,997 |
Tennessee | $46,280 |
Texas | $49,082 |
Utah | $48,189 |
Vermont | $55,743 |
Virginia | $52,057 |
Washington | $56,567 |
West Virginia | $44,460 |
Wisconsin | $49,284 |
Wyoming | $52,403 |
Recommended: Average Income by Age
How to Budget for a $95K Salary
No matter how much money you earn each year, it’s a smart idea to create a budget. One of the first steps you’ll want to take is to figure out how much money you have left after withholding for federal income taxes, Social Security taxes, and Medicare. On average, the take-home pay on a $95,000 salary is around $74,991.50, though that doesn’t include state taxes.
Once you’ve determined your after-tax income, consider using the 50/30/20 rule for budgeting. This means 50% of your income goes toward needs, 30% goes toward “wants,” and 20% goes toward savings or debt repayment beyond your minimum amounts.
Let’s say, for example, you live in Massachusetts. Your $95,000 salary would break down to $5,757 per month due to taxes (based on a 27.3% average tax rate and 35% marginal tax rate). Using the 50/30/20 rule, you’d put the following amounts in the corresponding pockets:
• 50% needs: $2,878.50
• 30% wants: $1,727.10
• 20% savings or debt repayment: $1,151.40
After you have your budget in place, a tool like an online money tracker can help you monitor your spending as well as keep tabs on your credit score.
Maximizing a $95K Salary
Whether you’re earning $95,000 as an entry-level salary or after several years on the job, there are ways to make the most of your income. Here are some strategies to consider:
• Build an emergency fund. Aim for a cushion of three to six months of living expenses.
• Max out your retirement savings account — and make sure you’re taking advantage of a company match, if one is available.
• Explore investing in securities that charge minimal fees.
• Work on improving your credit score, which can boost your chances of getting competitive interest rates.
Quality of Life with a $95K Salary
While it’s a highly subjective measure, “quality of life” typically refers to a combination of personal preferences, including job satisfaction, family life, health, and safety. How well you can live on your salary often boils down to your expenses and how and where you choose to spend your money.
By and large, many people with $95,000 salaries find they can live quite comfortably. However, if you spend more than you earn or rely on credit to fund your lifestyle, you may find you have trouble making ends meet on your income.
Is $95,000 a Year Considered Rich?
The Charles Schwab Wealth Survey reported that a national sample of Americans between the ages of 21 to 75 believe you need to amass $2.2 million to be considered wealthy. However, according to the same survey, Americans who say they feel wealthy have less than that — around a $560,000 net worth.
Note that it’s possible to accumulate wealth if you’re earning $95,000 a year, though it may take some time. Common strategies include relying on investing and compound interest to increase net worth, saving money, and setting money aside in a company retirement plan.
Recommended: Net Worth Calculator By Age
Is $95K a Year Considered Middle Class?
Middle class is defined as income that is two-thirds to double the national median income. By that definition, a middle-class household makes between $47,189 and $141,568, and $95,000 is in that range.
However, that’s for the nation. When you drill down to the city and state level, you see that the income required to be middle class varies. For instance, to be considered middle class in San Francisco, you’ll need to earn between $91,126 and $151,877. In Washington, D.C., middle class is defined as income that falls between $67,815 and $113,024.
Example Jobs that Make About $95,000 a Year
Many career types fall into the $95,000 salary range, including jobs for introverts. Here are some examples of careers you can pursue, which require a range of degree levels from associate to graduate:
• Financial Analyst: $99,890 per year
• Industrial Engineer: $99,380 per year
• Radiation Therapist: $98,300 per year
• Occupational Therapist: $96,370 per year
• Civil Engineer: $95,890 per year
• Architect: $93,310 per year
The Bureau of Labor Statistics offers an occupation finder in its Occupational Outlook Handbook, which you can sort by median pay over $80,000.
The Takeaway
Is $95k a good salary for a single person? By and large, yes, but your spending habits, budgeting skills, and local cost of living can all impact how far your money goes. With careful budgeting and saving, you can make the most of your income.
Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.
See exactly how your money comes and goes at a glance.
FAQ
Can I live comfortably making $95K a year?
Generally speaking, many people can live comfortably making $95,000 per year. However, it depends on several factors, including where you live, how much you spend, and where you put your money. Those who live within a budget feel the most comfortable with that salary.
What can I afford with a $95K salary?
Let’s target one of the most expensive assets most people own: a home. You may wonder how much house you can afford without stretching yourself.
Experts often suggest the 28/36 rule, which means that you should spend no more than 28% of your gross income on housing and no more than 36% on all your debt, which might include housing, student loans, car payment, credit cards, etc.
For example, according to the 28/36 rule on a $95,000 salary, you should spend no more than $2,216 on housing per month.
How much is $95K a year hourly?
A $95,000 salary breaks down to $45.67 per hour. This per-hour figure might not help you budget or understand your overall income, but it’s interesting to analyze.
How much is $95K a year monthly?
You’ll bring in $7,916.67 per month with a $95,000 per-year salary. It’s important to note that this is the general breakdown for that salary — your state may charge more in taxes and you may actually make less.
How much is $95K a year daily?
You’ll earn $365.38 per day with a $95,000 salary. Similar to your hourly rate, you might find this number difficult to help you budget or for use in a net worth calculator by age, but it’s interesting to know.
Photo credit: iStock/JLco – Julia Amaral
SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.
*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
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Source: sofi.com
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The average salary across the United States sits at $63,795, per the Social Security Administration. So an income of $300,000 per year — more than four times that figure — is by most standards a great salary for a single person in 2024.
Of course, even a large amount of money can come up short if you don’t have a solid budget in place or if you lead a particularly expensive lifestyle.
Below, we’ll dive into the various considerations.
Is $300K a Good Salary?
If you’ve just been offered a job with this figure in its compensation package, you may be wondering, “Is $300,000 a good salary for a single person?”
The thing is, there’s really no one-size-fits-all answer to that question. While $300,000 per year is substantially more than most people — or even most U.S. households — make, whether or not it’s comfortable for you depends on your lifestyle choices and expectations.
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Median Income in the US by State in 2024
You may be wondering how much you make compared to your neighbors. Median yearly household income varies significantly by state, ranging from Mississippi’s $52,985 to Maryland’s $98,461. However, nowhere in America does the median household income come anywhere close to $300,000 per year.
State | Median Household Income |
---|---|
Alabama | $59,609 |
Alaska | $86,370 |
Arizona | $72,581 |
Arkansas | $56,335 |
California | $91,905 |
Colorado | $87,598 |
Connecticut | $90,213 |
Delaware | $79,325 |
Florida | $67,917 |
Georgia | $71,355 |
Hawaii | $94,814 |
Idaho | $70,214 |
Illinois | $78,433 |
Indiana | $67,173 |
Iowa | $70,571 |
Kansas | $69,747 |
Kentucky | $60,183 |
Louisiana | $57,852 |
Maine | $68,251 |
Maryland | $98,461 |
Massachusetts | $96,505 |
Michigan | $68,505 |
Minnesota | $84,313 |
Mississippi | $52,985 |
Missouri | $65,920 |
Montana | $66,341 |
Nebraska | $71,772 |
Nevada | $71,646 |
New Hampshire | $90,845 |
New Jersey | $97,126 |
New Mexico | $58,722 |
New York | $81,386 |
North Carolina | $66,186 |
North Dakota | $73,959 |
Ohio | $66,990 |
Oklahoma | $61,364 |
Oregon | $76,362 |
Pennsylvania | $73,170 |
Rhode Island | $81,370 |
South Carolina | $63,623 |
South Dakota | $69,457 |
Tennessee | $64,035 |
Texas | $73,035 |
Utah | $86,833 |
Vermont | $74,014 |
Virginia | $87,249 |
Washington | $90,325 |
West Virginia | $55,217 |
Wisconsin | $72,458 |
Wyoming | $72,495 |
Source: U.S. Census Bureau
Average Cost of Living in the US by State in 2024
Just as median income varies significantly depending on which state you’re in, so does the state-by-state cost of living. This means that $300,000 can go a lot further in, say, Arkansas than it would in California.
While these figures are just averages — and the state-wide cost of living can vary substantially depending on which city you live in — here’s the average cost of living in each of the 50 states:
State | Average Cost of Living |
---|---|
Alabama | $42,391 |
Alaska | $59,179 |
Arizona | $50,123/td> |
Arkansas | $42,245 |
California | $60,272 |
Colorado | $59,371 |
Connecticut | $60,413 |
Delaware | $54,532 |
Florida | $55,516 |
Georgia | $47,406 |
Hawaii | $54,655 |
Idaho | $43,508 |
Illinois | $54,341 |
Indiana | $46,579 |
Iowa | $45,455 |
Kansas | $46,069 |
Kentucky | $44,193 |
Louisiana | $45,178 |
Maine | $55,789 |
Maryland | $52,651 |
Massachusetts | $64,214 |
Michigan | $49,482 |
Minnesota | $52,849 |
Mississippi | $39,678 |
Missouri | $48,613 |
Montana | $51,913 |
Nebraska | $37,519 |
Nevada | $49,522 |
New Hampshire | $60,828 |
New Jersey | $60,082 |
New Mexico | $43,336 |
New York | $58,571 |
North Carolina | $47,834 |
North Dakota | $52,631 |
Ohio | $47,768 |
Oklahoma | $42,046 |
Oregon | $52,159 |
Pennsylvania | $53,703 |
Rhode Island | $52,820 |
South Carolina | $46,220 |
South Dakota | $48,997 |
Tennessee | $46,280 |
Texas | $49,082 |
Utah | $48,189 |
Vermont | $55,743 |
Virginia | $52,057 |
Washington | $56,567 |
West Virginia | $44,460 |
Wisconsin | $49,284 |
Wyoming | $52,403 |
Source: U.S. Bureau of Economic Analysis
How to Live on $300K a Year
No matter what you earn, figuring out how to spend (and save) your money takes effort and planning. Although it may seem like, with a six-figure salary, you can just buy whatever you want, if you don’t take the time to lay out how much money you’re actually taking home each month — and how much needs to be set aside for regular, necessary expenses like housing, insurance, food, and utility bills — you could quickly find yourself eating into your savings or even spiraling into credit card debt.
A money tracker is a great way to get a bird’s-eye view of where your funds are really going. This can be a first step toward deciding where you want them to go, rather than letting them whisk themselves away.
How to Budget for a $300K Salary
Whether you’re earning an entry-level salary or sitting in the C-suite, a little bit of budgeting can go a long way. But how?
The first step in budgeting is to determine how much money you make each month, which, in the case of someone earning a $300,000 salary, is about $25,000 before taxes are taken out. Because state taxes can vary significantly, you’ll need to look at your own pay stubs or do the math to determine how much is left afterwards, also known as your “net” income.
Once you know your net income, you can begin to deduct your regular, expected expenses. These include your housing payment (like rent or a mortgage), insurance payments, utility bills, and other recurring regular expenses (like your Netflix subscription). You should also set aside a budget for required monthly expenses that may vary a bit but are still critical, like groceries and fuel, or transportation.
Now, you can subtract your monthly expenses from your monthly earnings to determine how much discretionary income you have to do with what you please, including setting aside at least some of it for savings.
Sounds like too much work to do this all on paper? Fortunately, there are plenty of budget planner apps that can make the process a breeze.
Maximizing a $300K Salary
Just because you earn a lot doesn’t mean you have to spend a lot. And if you’re careful with your over-average salary, you can save money for the future and help safeguard your lifestyle for the long run.
For example, if you saved just 10% of your $300,000 per year salary, that would be $30,000 per year into your emergency fund or investment account. Especially if you choose to invest it, that amount can really add up over a relatively short amount of time — increasing your overall net worth and potentially even giving you the opportunity to retire early!
Quality of Life with a $300K Salary
Because a $300,000 per year salary is so much higher than the average cost of living in most states, most people who earn this much will find themselves able to afford a very comfortable, high quality of living anywhere.
Of course, the money can still go further in some places than others. For instance, on $300,000, you might be able to afford a small mansion in Mississippi — or an 800-square-foot apartment in Manhattan.
Is $300,000 a Year Considered Rich?
Given that the average salary in the U.S. is about 21% of $300,000, yes, many would consider someone earning $300,000 per year by themselves to be rich.
However, in most states, you’d need to make substantially more than $300,000 per year to be in the top 1% of earners. The states where you’d come closest are West Virginia and Mississippi, where the top 1% earn at least $367,582 and $381,919 per year, respectively.
Is $300K a Year Considered Middle Class?
The amount of money you’d need to earn to be considered middle class varies depending on where you live. But according to the Pew Research Center, it’s between about $47,189 and $141,568 per year on average. Which is to say, no, $300,000 per year is not considered middle class in the vast majority of cities and scenarios.
Example Jobs that Make About $300,000 a Year
Don’t make $300,000 per year (yet), and curious about how to make the dream a reality?
You might consider opening your heart to cardiology, which, according to data compiled by SoFi, offers an average salary of $421,330 per year. Medical positions feature prominently among the top-paying jobs, with surgeons, radiologists, dermatologists, emergency medicine physicians, and anesthesiologists all earning more than $300,000 per year.
The Takeaway
A salary of $300,000 is substantially higher than the national average and certainly a “good” salary for a single person in 2024 by most peoples’ reckoning. That said, no matter how much you earn, bad financial habits can bite you in the long run, so don’t forget about your budget.
Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.
See exactly how your money comes and goes at a glance.
FAQ
Can I live comfortably making $300K a year?
While everyone’s standard of comfort is individual, given how much higher $300,000 per year is than the average U.S. salary, yes, most people would be able to live comfortably on $300,000 per year. Even for high earners, however, having a budget is important. Making a plan for your money helps ensure you know exactly where each dollar is going rather than watching them fly away on their own.
What can I afford with a $300K salary?
With a $300,000 salary, you could afford a lot of things, including, depending on your overall applicant profile, a home priced close to a million dollars. With a high salary and the opportunity to save up money, you could likely afford luxurious vacations or high-end toys and gadgets, too. Again, though, a higher-than-average salary doesn’t preclude you from overspending or going into debt, so be sure to make a budget that accounts for all your necessary and discretionary expenses.
How much is $300K a year hourly?
For those who work 40-hour weeks 50 weeks out of the year, a $300,000 salary comes out to an hourly rate of around $150.
How much is $300K a year monthly?
A salary of $300,000 per year, divided by 12 months, comes out to roughly $25,000 per month.
How much is $300K a year daily?
A gross annual income of $300,000 per year, divided by 365 days, comes out to about $821.92 per day. Of course, most people don’t work every single day of the year. As an estimate for the normal five-day work week, accounting for weekends and typical American public holidays, an employee might work about 250 days per year, in which case a $300,000 salary comes out to approximately $1,200 per day.
Photo credit: iStock/Dusan Atlagic
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