Short answer: At Morris County’s September 2026 median single-family price of $737,500 and a 7.24% 30-year rate, a household needs roughly $219,000 a year with 20% down, or about $253,000 to $264,000 with 10% or 5% down, using the common 28% housing-cost guideline. The full math and every assumption are below.
Online calculators rarely show their work or use Morris County property taxes. Here is a worked example built from public data, with each input labeled so you can swap in your own.
The Inputs We Used
Verified numbers
- Home price: $737,500. The median sales price for single-family homes in Morris County in September 2026, from the NJ REALTORS monthly county report (ShowingTime). Through September, the year-to-date single-family median was $795,333, and townhouse-condo sales had a September median of $540,000.
- Mortgage rate: 7.24%. Freddie Mac’s Primary Mortgage Market Survey average for a 30-year fixed loan, week of October 29, 2026. Your actual rate depends on credit, points and loan type.
- Property taxes: about 1.55% of the price. The NJ Division of Taxation’s 2025 Average Residential Statistics show a Morris County average residential tax bill of $12,175 and an average residential sales price of about $787,973. Dividing one by the other gives a rough county-wide rate of 1.55%, which works out to about $11,400 a year ($950 a month) on a $737,500 home.
Assumptions (change these to fit your situation)
- Homeowners insurance: $1,800 a year ($150 a month). This is an assumption, not a published figure. Get real quotes.
- Private mortgage insurance (PMI): 0.5% of the loan amount per year when you put less than 20% down. Also an assumption. Actual PMI pricing varies widely with credit score and down payment.
- Other debts: $500 a month (car, student loan, cards) for the back-end check.
- No HOA fees. Condos and townhouses usually have them, and lenders count them.
Taxes are the input most likely to move your number. Bills vary a lot from town to town, so if you have a specific municipality in mind, read our guide on how NJ property taxes work in Morris County and plug in that town’s figure.
The 28% / 36% Guideline
A long-standing rule of thumb for conventional loans is that housing costs (principal, interest, taxes, insurance and any PMI) should stay at or under 28% of gross monthly income, and all monthly debts together should stay at or under 36%. Virginia Housing, a state housing finance agency, publishes those same conventional benchmarks. Fannie Mae’s Selling Guide sets 36% as the maximum total debt-to-income ratio for manually underwritten loans, with room up to 45% for stronger files, and up to 50% when the loan runs through its automated underwriting system.
The CFPB also points out that limits differ by loan product and lender. In other words, many buyers get approved above 28/36. We use it here because it is a conservative, comfortable budget, not a hard cap. In every scenario below, the 28% test was the one that set the income requirement.
The Math on a $737,500 Home
| Down payment | 5% | 10% | 20% |
|---|---|---|---|
| Cash down | $36,875 | $73,750 | $147,500 |
| Loan amount | $700,625 | $663,750 | $590,000 |
| Principal and interest (7.24%) | $4,775 | $4,523 | $4,021 |
| Property tax (est.) | $950 | $950 | $950 |
| Insurance (assumed) | $150 | $150 | $150 |
| PMI (assumed 0.5%/yr) | $292 | $277 | $0 |
| Total monthly housing cost | $6,166 | $5,900 | $5,120 |
| Income needed at 28% | $264,269 | $252,840 | $219,447 |
| Income needed at 36% (with $500 other debt) | $222,209 | $213,320 | $187,348 |
Closing costs and cash reserves come on top of the down payment, so plan for more cash than the first row shows.
Income Needed at Other Price Points
Same rate, tax estimate and assumptions, using the 28% guideline:
| Home price | 5% down | 10% down | 20% down |
|---|---|---|---|
| $650,000 | $233,677 | $223,605 | $194,174 |
| $737,500 (Sept. 2026 median) | $264,269 | $252,840 | $219,447 |
| $850,000 | $303,600 | $290,428 | $251,942 |
All of these loan amounts fall under FHFA’s 2026 baseline conforming loan limit of $832,750 for a one-unit home.
One more local factor: Morris County single-family homes sold for 104.0% of list price on average in September 2026, per the same NJ REALTORS report. If you expect to compete, budget for paying above asking. Our post on how much over asking homes sell for in Morris County walks through that.
How Does That Compare to Local Incomes?
The Census Bureau’s QuickFacts puts Morris County’s median household income at $137,326 (2020 to 2024 American Community Survey, in 2024 dollars). At 28%, that household’s housing budget is about $3,204 a month. With 20% down and the same assumptions, that covers a home of roughly $453,000, well below the current single-family median.
That gap is real, but many buyers bring equity from a sale, and others buy a townhouse or condo (September median: $540,000). First-time buyers may qualify for down payment or closing cost help; see our roundup of first-time home buyer programs in New Jersey.
Ways to Bring the Number Down
- Shop the rate. Lenders price differently, and points can lower the rate.
- Compare town-level taxes. Similar homes can carry very different bills.
- Pay down other debts if the 36% test is what limits you.
- Get pre-approved early. A lender’s real numbers beat any rule of thumb.
This is general information, not legal, tax or financial advice. Confirm the details for your situation with your attorney, accountant or lender.
Frequently Asked Questions
What salary do you need to buy a house in Morris County, NJ?
Using the September 2026 single-family median of $737,500, a 7.24% rate, estimated taxes and assumed insurance, the 28% guideline points to about $219,000 a year with 20% down and roughly $253,000 to $264,000 with 10% or 5% down. Lenders may approve higher ratios.
Is the 28/36 rule a lender requirement?
No. It is a conservative budgeting benchmark. Fannie Mae, for example, allows total debt-to-income ratios up to 36% on manually underwritten loans, up to 45% for some borrowers, and up to 50% through its automated underwriting system.
How much are property taxes on a Morris County home?
The NJ Division of Taxation’s 2025 figures show an average residential tax bill of $12,175 in Morris County. Individual bills depend on the town’s tax rate and the home’s assessment, so check the specific property.
Can the median Morris County household afford the median home?
Not on these assumptions. A household earning the Census median of $137,326 could afford about $453,000 with 20% down at 28%, which is below the $737,500 single-family median. Equity from a prior home, a lower-priced home or assistance programs can close the gap.
Sources
- NJ REALTORS / ShowingTime, Morris County Local Market Update, September 2026
- Freddie Mac Primary Mortgage Market Survey
- NJ Division of Taxation, 2025 Average Residential Statistics
- U.S. Census Bureau QuickFacts: Morris County, New Jersey
- Fannie Mae Selling Guide B3-6-02, Debt-to-Income Ratios
- Virginia Housing, Know Your Homebuying Ratios
- CFPB, What Is a Debt-to-Income Ratio?
- FHFA, Conforming Loan Limit Values for 2026
Talk to the MorrisAgent Team
If you want to run these numbers on a specific home or town, we are happy to help. Call (973) 200-4800, email [email protected], or stop by our office at 518 Main Street, Suite 102, Boonton. No pressure, and no surprises.