It Now Takes $116,000 a Year to Buy the Median Home, and the Median Family Earns $99,500
TallahasseeBusinessNews.com | By Brian French | Published September 5, 2026 | Data through June–August 2026
This is the baseline edition of the Tallahassee Affordability Index, a monthly Florida Authority Network series that converts home prices, mortgage rates, rents, and local incomes into one number: the household income required to buy the median Tallahassee home, compared with what Tallahassee households actually earn. Updated after each Florida Realtors monthly release.
Quick Answer
Can a typical Tallahassee family afford a typical Tallahassee home? Not quite, and the gap opened this summer. The median existing single-family home in the Tallahassee metro sold for $364,950 in June 2026, up 5.8% from a year earlier, according to Florida Realtors. At the current 30-year mortgage rate of 6.66% (Freddie Mac, August 27), a buyer putting 10% down would face roughly $2,715 a month in principal, interest, taxes, insurance, and mortgage insurance — which under a standard 28% housing-cost ratio requires household income of about $116,400. HUD’s 2026 median family income for the Tallahassee metro is $99,500. That puts the income needed to buy the median home at 117% of what the median family earns — the first reading of what this index calls the Tallahassee Buy Gap. Renting remains within reach: HUD’s FY2026 fair market rent for a two-bedroom is $1,352, affordable at 30% of income to a household earning $54,100. Tallahassee is still among Florida’s cheapest metros to live in — and, for the first time in this cycle, its median home is out of reach of its median family.
The Numbers at a Glance
| Metric | Figure | Period | Source |
|---|---|---|---|
| Median sale price, existing single-family, Tallahassee MSA | $364,950 (+5.8% YoY) | June 2026 | Florida Realtors |
| Year-to-date median sale price | $340,000 (+1.5%) | Jan–Jun 2026 | Florida Realtors |
| Florida statewide median | $432,000 (+4.9%) | June 2026 | Florida Realtors |
| Closed sales, Tallahassee MSA | 364 (-6.2% YoY); 1,830 YTD | June 2026 | Florida Realtors |
| Zillow Home Value Index, City of Tallahassee | ~$281,000–$289,000 (+1.3% to +3.1%) | June 2026 | Zillow |
| Median list price / active inventory / median days | $336,200 / ~991 homes / ~50 days | July 2026 | Realtor.com via HomeValuePros |
| Listings with price cuts | ~20% | July 2026 | Realtor.com via HomeValuePros |
| ZIP-code median range, MSA | $180,000 (32304) to $515,000 (32344) | June 2026 | Tallahassee Board of Realtors MLS via Manausa |
| 30-year fixed mortgage rate | 6.66% | Aug. 27, 2026 | Freddie Mac PMMS |
| HUD median family income, Tallahassee HMFA | $99,500 | 2026 | HUD / Florida Housing |
| HUD FY2026 fair market rent, 2-bedroom | $1,352 | Effective Oct. 1, 2025 | HUD |
| $1M+ closed sales, Jan–Jul | 34 (vs. 30); median days 91 (vs. 38) | 2026 | Century 21 First Story / TBR MLS |
The Index: Income Needed to Buy
| Home price benchmark | Monthly payment (10% down, 6.66%, taxes, insurance, PMI) | Income required at 28% | Share of median family income ($99,500) |
|---|---|---|---|
| June 2026 MSA median, $364,950 | $2,715 | $116,400 | 117% |
| YTD 2026 MSA median, $340,000 | $2,539 | $108,800 | 109% |
| Zillow typical Tallahassee home, ~$281,000 | $2,123 | $91,000 | 91% |
| ZIP 32304 median (lowest), $180,000 | $1,407 | $60,300 | 61% |
| ZIP 32344 median (highest), $515,000 | $3,777 | $161,900 | 163% |
| June median with 20% down | $2,344 | $100,500 | 101% |
Rent benchmark: 2-bedroom fair market rent of $1,352 requires $54,100 at 30% of income — 54% of median family income.
Florida Authority Network calculations. Assumptions: 30-year fixed at 6.66%; property tax 1.1% of price; homeowners insurance $1,600/year (Tallahassee’s inland location keeps premiums roughly half the Florida average); private mortgage insurance 0.5% of loan for 10% down; 28% front-end ratio. See Methodology.
What the Data Shows
Prices are rising faster than the state’s — on falling volume
June’s $364,950 median was up 5.8% year-over-year, outpacing Florida’s 4.9%, while closed sales fell 6.2% to 364 against a statewide sales increase of 9.3%. Tallahassee is the inverse of the state: fewer transactions at higher prices. Year-to-date the picture is calmer — a $340,000 median, up only 1.5% — which suggests June’s jump reflects mix (more expensive homes closing) as much as appreciation. The permit data in this series’ Tallahassee Permit Tracker points the same way: fewer, more expensive new homes.
The Zillow gap: what a house is worth versus what sells
Zillow’s home value index for the city sits near $281,000–$289,000, roughly $50,000–$80,000 below the Realtors’ median sale price. The two measure different things — Zillow estimates the value of all homes including those not for sale; the Realtors’ figure is the median of what actually closed — but the spread is the affordability story in one line. The homes changing hands are pricier than the typical home Tallahasseeans own. A first-time buyer competes for the former.
The metro is not one market
The Board of Realtors’ ZIP-level data shows medians ranging from $180,000 in 32304 (west of campus, the FSU-FAMU student corridor) to $515,000 in 32344 (Monticello, Jefferson County) — a near-threefold spread inside a single MSA. A household earning the metro median can comfortably buy in 32304 and cannot approach the northeast or the Jefferson County horse-country ZIPs. Surrounding-county ZIPs do not reliably offer relief: 32351 (Quincy) is $223,500, but 32333 (Havana) is $395,000.
Mortgage rates erased the spring’s affordability gain
Rates fell to 6.01% in February 2026, the lowest since 2022, and Freddie Mac reported purchase applications 20% above a year earlier by April. They have since climbed back to 6.66%. On the June median with 10% down, the move from 6.01% to 6.66% adds about $135 a month to the payment and roughly $5,800 to the income required — nearly wiping out the effect of a year’s wage growth.
The luxury tier is selling more and selling slower
Thirty-four homes closed at $1 million or more from January through July, up from 30, at a higher median ($1,366,563 vs. $1,200,000), but median days on market more than doubled to 91 from 38, according to an MLS export reviewed by Century 21 First Story. Northeast Tallahassee is the luxury core. More inventory at the top, taking longer to clear, is consistent with the 20% of active listings carrying price cuts.
Rent is the relief valve
HUD’s FY2026 two-bedroom fair market rent of $1,352 is among the lowest of any Florida metro. The Tallahassee Housing Authority sets its voucher payment standard at 95% of FMR ($1,284 for a two-bedroom). A household at the metro’s 50%-of-median income limit for a family of four ($49,750) can afford $1,244 a month at 30% — just under the two-bedroom FMR. Tallahassee’s rental market clears at roughly half the income its ownership market requires, which is the structural reason a growing metro with a rising unemployment rate has not yet seen a housing crisis: renters can still stay.
What It Means for Tallahassee Business
Home builders: The gap between what the median family can afford (~$300,000 at 10% down) and the median new home is where the volume is. Product under $300,000 in Leon County has almost no new-construction competition.
Real estate professionals: Expect continued low transaction counts. A 117% Buy Gap means the marginal buyer is stretched; every quarter-point move in rates swings the qualified-buyer pool.
Employers recruiting to Tallahassee: The pitch that “housing is cheap here” is still true relative to Florida — the metro median is $67,000 below the state’s — but no longer true relative to local wages. Relocation packages priced on 2022 assumptions will fall short.
Apartment developers and lenders: With 342 units in review downtown and a 5.1% unemployment rate, the rent side is where affordability lives; that supports absorption at FMR-level rents but not at premium pricing.
Brian’s Take
The single most useful number in local housing coverage is the one nobody publishes: how much you have to earn to buy the median house. Here it is — about $116,000 at today’s rates, against a median family income of $99,500. Tallahassee has spent years telling recruits and retirees it’s the affordable Florida, and by state standards it still is: our median is $67,000 under Florida’s, our insurance is half the state average, and a two-bedroom rents for $1,352. But affordability is a ratio, not a price, and the ratio crossed 100% this summer on the back of a 5.8% price gain and a rate rebound to 6.66%. Two things I’ll watch. First, whether June’s median holds or was a mix effect; the July Florida Realtors data comes out later this month. Second, whether the 20% of listings with price cuts turns into a lower median by fall, which would pull the Buy Gap back toward 100% without anyone earning more. Until then, the honest headline for a Tallahassee family is: you can rent here on one good salary, and you need two to buy.
Frequently Asked Questions
What is the median home price in Tallahassee? $364,950 for an existing single-family home in the Tallahassee metro in June 2026, up 5.8% from a year earlier, according to Florida Realtors. The year-to-date median is $340,000. Zillow’s home value index for the city is about $281,000–$289,000.
How much income do you need to buy a house in Tallahassee? About $116,400 a year to buy the June 2026 median home with 10% down at a 6.66% mortgage rate, using a 28% housing-cost ratio. With 20% down the requirement falls to roughly $100,500.
What is the median household income in Tallahassee? HUD’s 2026 median family income for the Tallahassee metro (Leon, Gadsden, Jefferson counties) is $99,500. Median household income, which includes single-person households, is lower.
How much is rent in Tallahassee? HUD’s FY2026 fair market rent is $1,097 for a studio, $1,204 for one bedroom, $1,352 for two bedrooms, $1,674 for three bedrooms, and $1,790 for four bedrooms.
Is Tallahassee cheaper than the rest of Florida? Yes. The metro’s June 2026 median of $364,950 is $67,000 below Florida’s $432,000, and homeowners insurance runs roughly half the state average because of the inland location.
What is the cheapest ZIP code in Tallahassee? 32304, west of the FSU and FAMU campuses, had the lowest median sale price in the metro at $180,000 in June 2026, according to Tallahassee Board of Realtors MLS data.
Methodology
The Tallahassee Affordability Index uses the Florida Realtors monthly market report for the Tallahassee MSA (median sale price of existing single-family homes, closed sales), Freddie Mac’s Primary Mortgage Market Survey (30-year fixed rate, most recent week), HUD’s FY2026 Fair Market Rents and 2026 Median Family Income for the Tallahassee HUD Metro FMR Area, Zillow’s Home Value Index, Realtor.com inventory data, and Tallahassee Board of Realtors MLS ZIP-level medians as published by local brokerages. The income-required calculation assumes a 30-year fixed mortgage at the Freddie Mac rate, 10% down payment (a 20% case is shown), property tax at 1.1% of purchase price (an approximation of Leon County effective rates), homeowners insurance of $1,600 per year, private mortgage insurance at 0.5% of loan balance when down payment is under 20%, and a 28% front-end debt-to-income ratio. The Tallahassee Buy Gap is income required divided by HUD median family income. Rent affordability uses HUD’s 30%-of-income standard. All derived figures are Florida Authority Network calculations and will be recomputed monthly; changes in assumptions will be noted.
Sources and Resources
- Tallahassee Reports, “Tallahassee Home Prices Outpace State as Sales Slow in June,” August 14, 2026 (Florida Realtors data) — https://tallahasseereports.com/2026/08/14/tallahassee-home-prices-outpace-state-as-sales-slow-in-june/
- Florida Realtors, Market Reports — https://www.floridarealtors.org/research-education/research-reports
- Freddie Mac, Primary Mortgage Market Survey, August 27, 2026 — https://www.freddiemac.com/pmms
- HUD, FY2026 Fair Market Rents — https://www.huduser.gov/portal/datasets/fmr.html
- Florida Housing Data Clearinghouse (Shimberg Center), 2026 Income and Rent Limits — https://flhousingdata.shimberg.ufl.edu/income-and-rent-limits/results?nid=1
- Tallahassee Housing Authority, Income Limits and Payment Standards — https://www.tallha.org/income-limits-and-payment-standards
- Zillow, Tallahassee Home Values — https://www.zillow.com/home-values/47945/tallahassee-fl/
- HomeValuePros, Tallahassee Housing Market (Zillow/Realtor.com aggregation) — https://www.homevaluepros.com/fl/tallahassee/
- Manausa Real Estate, “Tallahassee MSA Home Prices By ZIP Code In June,” June 2026 — https://www.manausa.com/blog/tallahassee-msa-home-prices-zip-code/
- Century 21 First Story Real Estate / PRZen, “Tallahassee Million-Dollar Home Sales Rise in 2026,” August 19, 2026 — https://www.daily-tribune.com/online_features/press_releases/tallahassee-million-dollar-home-sales-rise-in-2026-as-median-selling-time-more-than-doubles/article_4c4faef7-7f44-5ba5-8fae-f21679b1a869.html
- Florida Independent, “Cost of Living in Tallahassee, FL (2026 Breakdown)” — https://floridaindependent.com/florida/cost-of-living/tallahassee
- Leon County Property Appraiser — https://www.leonpa.gov/
Related coverage across the Florida Authority Network: FloridaRealEstateNews (statewide affordability), FlFinancialNews (mortgage markets), and the TallahasseeBusinessNews Permit Tracker and Employer Scorecard.
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