How Much Income Do You Need to Buy a Home in San Diego?

by Trevor Landress

The California Association of REALTORS® (C.A.R.) reported that a buyer needed an income of about $268,000 a year to qualify for the median-priced single-family home in San Diego County in the second quarter of 2026. Your own number can be lower or higher. It depends on the price, the rate, your down payment and your other debts.

I'm Trevor Landress, a San Diego REALTOR® with Coldwell Banker West and part of the Campbell Group, a three-generation real estate team. This guide explains where that number comes from and how to find yours.

The short answer

C.A.R. Q2 2026: median price $1,075,000, minimum qualifying income $268,000, monthly payment about $6,700.
That payment includes taxes and insurance, not just the loan.
C.A.R. reported that 17% of San Diego County households could afford the median-priced home.
Rates matter. Freddie Mac reported the average 30-year rate at 7.40% on October 8, 2026.
There is no federal 43% debt-to-income cap anymore, but lenders still check your ability to repay.

What did C.A.R. report for San Diego County?

C.A.R. Q2 2026, San Diego County	Figure
Median home price	$1,075,000
Minimum qualifying income	$268,000
Monthly payment (including taxes and insurance)	about $6,700
Households able to afford the median home	17%

The 17% share was unchanged from the first quarter of 2026 and up from 16% a year earlier, according to KPBS. The report described affordability in the county as near historic lows.

C.A.R. builds its index with its own assumptions. The statewide figures it published use a 20% down payment, a 6.54% rate and a 30-year fixed loan. Treat the San Diego number as a benchmark, not a rule.

How much do interest rates change the payment?

A lot. C.A.R. reported a statewide average effective rate of 6.54% in the second quarter, up from 6.24% in the first quarter. Freddie Mac reported the 30-year average at 7.40% on October 8, 2026. The Federal Reserve also raised its target rate on September 16, 2026.

Here is what that does to principal and interest on an $860,000 loan, which is 80% of the Q2 median price. These are my own calculations, not C.A.R. figures.

30-year rate	Principal and interest	Difference
6.54%	$5,458 a month	Base
7.40%	$5,954 a month	+$496 a month

The rate moved less than one point. The payment moved by almost $500 a month. That is why a rate headline can change your budget overnight.

How do lenders decide how much you can borrow?

Lenders look at four things: income, debts, credit and cash. They compare your monthly debts to your monthly income. That is called your debt-to-income ratio, or DTI.

A common myth is that federal law caps DTI at 43%. It does not anymore. The CFPB's 2020 General QM rule replaced the 43% limit with a price-based test. Lenders must still check that you can repay, and each loan program and lender sets its own DTI limits.

What counts as debt?

Car loans and leases.
Student loans.
Credit card minimum payments.
Personal loans and other monthly obligations that show on your credit report.
The new housing payment itself, including taxes and insurance.

Groceries, utilities and subscriptions usually do not count in DTI, but they still count in your real life. Remember that when you pick a comfortable payment.

What should you do before you apply?

Check your credit report for errors and fix them early.
Do not open new credit cards or finance a car right before you apply.
Gather pay stubs, tax returns and bank statements. Lenders ask for them.
Keep large deposits explained. Lenders may ask where money came from.
Ask your lender what documents your loan program needs.

What lowers the income you need?

A bigger down payment, which means a smaller loan.
Paying off a car loan or credit card before you apply.
A lower price, or a different property type such as a condo or townhome.
A co-borrower with income.
Down payment help programs such as CalHFA MyHome Assistance.

What if the benchmark feels out of reach?

Many people do not buy the median-priced single-family home. They buy a condo, a townhome or a home below the median. They save longer. They pay down debt first. The C.A.R. number is a starting point for the conversation, not a reason to give up.

This is not a guarantee

Prices, rates and loan rules change, and every buyer is different. The numbers in this post are averages, benchmarks or my own examples. They are not a quote, a prediction or a guarantee. Talk to a lender about your own situation.

My advice for San Diego buyers

Write down your monthly debts and your take-home pay.
Get preapproved so you see a real number from a real lender.
Test your payment at a higher rate than today's, so one rate move does not break your budget.
Set a ceiling you are comfortable with, even if a lender approves more.
Remember the full payment: loan, property tax, insurance and any mortgage insurance.

Call or text me at (619) 402-4614 or send me a message.

Call or text (619) 402-4614 Contact Trevor Landress

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Frequently asked questions

How much income do you need to buy a home in San Diego?

C.A.R. reported a minimum qualifying income of about $268,000 a year for the median-priced San Diego County home in Q2 2026. Your actual number depends on price, rate, down payment and debts.

What was the San Diego median price in Q2 2026?

C.A.R. reported a median price of $1,075,000 for San Diego County in the second quarter of 2026. The monthly payment it reported, including taxes and insurance, was about $6,700.

Is there a 43% debt-to-income cap on mortgages?

Not under the federal rule anymore. The CFPB's 2020 General QM rule replaced the 43% limit with a price-based test, though lenders still check your ability to repay and set their own limits.

How much does a higher rate change my payment?

On an $860,000 30-year loan, moving from 6.54% to 7.40% adds about $496 a month in principal and interest. That is my own calculation.

What share of San Diego households can afford the median home?

C.A.R. reported that 17% of San Diego County households could afford the median-priced single-family home in Q2 2026.

About the author

Trevor Landress is a San Diego REALTOR® with Coldwell Banker West (DRE# 02126901). He was born and raised in San Diego and has been licensed since 2021. Trevor helps homeowners sell, guides first-time buyers through the home buying process and assists investors with their next acquisition. His work includes negotiating offers, analyzing market trends, building pricing strategies and running marketing campaigns for his listings.

He serves clients across San Diego County, from coastal communities like La Jolla, Del Mar and Carlsbad to neighborhoods inland. Trevor is part of the Campbell Group, a three-generation real estate team, and he and the Campbell Group consistently rank as a top producing team at Coldwell Banker West each month. He writes these guides to help San Diego buyers and sellers navigate an ever-changing market. To talk through your plans, call or text (619) 402-4614 or contact Trevor Landress.

Sources

This article is general information about the San Diego housing market and home buying. It is not financial, tax or legal advice. Rates, programs and rules change, so confirm details with your lender, a tax professional or an attorney before you act.