How Much Income Do You Need to Buy a Home on the Eastside at 7% Mortgage Rates?
"What do I actually have to earn to buy on the Eastside?" It is the question I hear most often, usually before anyone has looked at a single listing. With the 30-year fixed rate sitting above 7%, the honest answer is a number that surprises a lot of people. So let's work through it with real math, plain assumptions, and no sugarcoating.
The Two Numbers Behind Every Payment Example
Mortgage rate: Freddie Mac's Primary Mortgage Market Survey put the average 30-year fixed rate at 7.24% for the week ending October 29, 2026, down from 7.32% the week before. That is a national weekly average. Your own quote can land above or below it depending on credit, down payment, loan type and points.
Local prices: Based on NWMLS data reported by Beyond WA for October 2026, the King County median sale price is $849,000, down 2.7% from a year earlier. On the Eastside, the same source shows October medians of roughly $1,200,000 in Kirkland, $1,250,000 in Redmond, $1,430,000 in Sammamish and $1,435,000 in Bellevue. Medians move month to month and say little about any one home, but they give us sensible price points to test.
The Assumptions, Stated Plainly
Every number below depends on these inputs, so change them and the answer changes:
- Loan: 30-year fixed at 7.24%.
- Down payment: 20% in the main examples, with one 10% down example further down.
- Property tax: 0.9% of the purchase price per year. This is my planning assumption, not a quoted rate. Actual taxes vary by city, levies and assessed value, so check the specific property.
- Homeowners insurance: $1,800 per year, also a planning assumption. Quotes vary with the home's age, location and coverage.
- Not included: HOA dues, utilities, maintenance, and closing costs. Mortgage insurance is not included in the 20% down examples.
- Debt-to-income guideline: A traditional rule of thumb is that housing costs stay at or under about 28% of gross monthly income. Many lenders will look at total monthly debts (housing plus car loans, student loans, credit cards) up to the low-to-mid 40s as a percent of gross income, and some programs go higher or lower. To keep it simple, I assume no other debts.
Worked Example 1: An $850,000 Home
This is close to the King County median. With 20% down ($170,000), the loan is $680,000.
- Principal and interest: about $4,634 per month
- Property tax: about $637 per month
- Insurance: about $150 per month
- Total: about $5,422 per month
At the conservative 28% guideline, that payment points to a gross household income of roughly $232,000. If a lender were comfortable with housing at 36% of gross income, the figure drops to about $181,000. That is a wide range, and it is the point: the "required income" is not one number. It depends on how much of your paycheck you and your lender are comfortable putting toward housing.
Worked Example 2: A $1,200,000 Home
This is around the Kirkland and Redmond medians. With 20% down ($240,000), the loan is $960,000.
- Principal and interest: about $6,542 per month
- Property tax: about $900 per month
- Insurance: about $150 per month
- Total: about $7,592 per month
At 28% of gross income, that means roughly $325,000 a year. At 36%, about $253,000.
Worked Example 3: A $1,435,000 Home
This is near the Bellevue median. With 20% down ($287,000), the loan is $1,148,000.
- Principal and interest: about $7,824 per month
- Property tax: about $1,076 per month
- Insurance: about $150 per month
- Total: about $9,050 per month
At 28%, the income lands near $388,000. At 36%, about $302,000.
Side-by-Side Summary
| Price | 20% Down | Est. Monthly Payment | Income at 28% | Income at 36% |
|---|---|---|---|---|
| $850,000 | $170,000 | $5,422 | ~$232,000 | ~$181,000 |
| $1,200,000 | $240,000 | $7,592 | ~$325,000 | ~$253,000 |
| $1,435,000 | $287,000 | $9,050 | ~$388,000 | ~$302,000 |
Figures are rounded estimates for illustration only, using the assumptions above.
What Happens With Less Down?
Putting 10% down on the $1,200,000 home ($120,000) makes the loan $1,080,000. Principal and interest rises to about $7,360, and mortgage insurance would typically be added. If I assume 0.5% of the loan per year as a placeholder (your actual cost depends on credit and the program), the total payment is roughly $8,860 per month. That points to about $380,000 of gross income at 28%, or about $295,000 at 36%. A smaller down payment lowers the cash you need up front, but it raises the income needed to carry the payment.
Where the Math Eases Up
Property type matters a great deal. Beyond WA lists the October median for a Bellevue condo or townhome at about $760,000, compared with about $1,600,000 for a Bellevue house. At roughly $760,000 with 20% down, the same assumptions give a payment near $4,860 per month before HOA dues, which points to about $208,000 of income at the 28% guideline. HOA dues count toward your housing costs, so add them in when you compare. If you want the full picture of what those homes cost to own beyond the sticker price, my recent post on townhomes, condos and single-family homes walks through it.
Other things that can change the math include a larger down payment, a seller credit toward a rate buydown, paying off a car loan or card balance before applying, a co-borrower's income, or simply looking in a different city. None of these is a promise, and each has trade-offs, but they are worth raising early.
What These Numbers Don't Tell You
A lender's approval and your own comfort level are two different things. Approval is about debt-to-income ratios, credit, assets and documentation. Comfort is about your savings goals, childcare, commutes, and how much cushion you want after closing. I'd rather you buy at a payment that lets you sleep well than at the maximum a calculator allows.
Also keep in mind that rates change weekly. At 7.24%, the principal and interest on a $1,000,000 loan is about $6,815 per month. A move of a quarter point in either direction shifts that by roughly $170. That is real money, but it is also why I don't suggest timing your purchase around a rate you can't control. If you find the right home, you can plan around the payment today and revisit the loan later if conditions change, although refinancing is never guaranteed.
One more caution on the income figures: they use gross (pre-tax) income, and they assume no car payments, student loans or card balances. Every $500 of monthly debt payments pushes the required income higher or shrinks the price range you can reach, so it is worth knowing your own debt picture before you build a budget around a median price.
A Practical Next Step
Before you tour homes, have a conversation with a mortgage lender and get a written pre-approval based on your real income, debts, credit and savings. A lender can run these numbers with your actual taxes, insurance quotes and loan options, which is something a blog post can't do. I'm happy to connect you with lenders I know, and I can then help you translate the monthly payment into a realistic search range across Bellevue, Kirkland, Redmond, Sammamish and the surrounding Eastside communities.
Reach out anytime to set up a quick call.
This post is general information for educational purposes, not lending, legal, tax or financial advice. Payment examples are estimates based on stated assumptions and will differ from an actual loan offer. Sources: Freddie Mac Primary Mortgage Market Survey (week of October 29, 2026); Beyond WA market reports using NWMLS data (October 2026) for King County, Bellevue, Kirkland, Redmond and Sammamish.