Answer first. To buy the median single family home in southern Maine in 2026, a household needs roughly $95,000 to $145,000 of gross annual income depending on the town, assuming 10 percent down, a 30 year fixed at a rate near the current Freddie Mac Primary Mortgage Market Survey level, standard homeowner insurance, and a debt-to-income ratio of 43 percent inclusive of principal, interest, property tax, and insurance. Portland and the immediate coast sit at the top of that band. Sanford, Biddeford, and Lewiston sit near the bottom. This post shows exactly how those numbers were built, town by town, using the same math the tools on this site use.
How this number is computed
The income figure is the smallest gross annual income that keeps a full monthly PITI payment at or under 43 percent of gross monthly income. PITI is principal and interest on the mortgage, property tax at the town's actual mill rate, and homeowner insurance at a conservative annual figure of $1,600 for a single family home. The mortgage rate used here is the most recent Freddie Mac PMMS 30 year fixed reading pulled by this site's Market Pulse module. If you visit the tool page today, the number you see will move with that reading; the ratio and the tax math do not.
Two important honest notes. First, 43 percent is a common maximum back-end DTI on conventional and government loans; some programs stretch further with compensating factors and some tighten below it. This is a planning number, not a promise. Second, homeowner insurance in coastal Maine has been rising; the $1,600 figure is a reasonable central estimate and the tool lets you adjust it. Nothing here is a rate quote or a commitment to lend.
Median prices used, by town
These are the same 2024 medians embedded in the tool: Portland $565,000; Cape Elizabeth $795,000; Falmouth $780,000; Cumberland $735,000; South Portland $505,000; Scarborough $655,000; Yarmouth $685,000; Freeport $585,000; Gorham $475,000; Windham $460,000; Westbrook $430,000; Saco $475,000; Biddeford $425,000; Kennebunk $675,000; York $685,000; Sanford $345,000. Sources are the Maine Association of Realtors 2024 county reports and MLS town-level year-end summaries. Prices verified before publish; if you spot a stale figure, the tools always run on the current values in src/lib/town-data.ts.
Worked examples at the current Pulse rate
These examples use a placeholder rate of 6.75 percent, close to recent PMMS readings. The exact number renders live on the tool pages. All examples assume 10 percent down, a 30 year fixed, and $1,600 annual insurance. Property tax uses each town's current mill rate applied to the median price.
- Portland, $565,000, mill rate 15.29. Monthly PITI near $4,150. Gross income needed at 43 percent DTI: about $116,000.
- South Portland, $505,000, mill rate 15.20. Monthly PITI near $3,720. Income needed: about $104,000.
- Biddeford, $425,000, mill rate 17.60. Monthly PITI near $3,290. Income needed: about $92,000.
- Sanford, $345,000, mill rate 19.75. Monthly PITI near $2,830. Income needed: about $79,000.
- Cape Elizabeth, $795,000, mill rate 17.98. Monthly PITI near $5,800. Income needed: about $162,000.
Notice what the mill rate does. Sanford's price is 40 percent below Portland's, but the higher mill rate compresses the monthly gap. That is the entire point of running these numbers per town instead of quoting a metro average. The 207 Number tool does this in one screen with the current rate.
Why 43 percent DTI, and what changes it
The 43 percent back-end DTI cap is the customary Qualified Mortgage ceiling and the level most conventional automated underwriting engines respect without extra documentation. Certain loan types allow more: VA loans routinely approve above 50 percent when residual income clears; FHA regularly runs to 50 percent and beyond with strong compensating factors; some conventional AUS decisions accept up to 49.9 percent. If you have significant reserves, a large down payment, or a documented rent-to-mortgage payment shock that is small or negative, higher ratios become defensible. The number in this post is deliberately conservative so it holds up town to town without asterisks.
What changes the answer month to month
Three inputs drive most of the movement. The 30 year fixed rate is the loudest lever; a one percentage point rate move changes required income by roughly 10 to 12 percent at these price points. The property tax bill is the second lever and it is town-specific, not metro-wide; a town revaluation can move required income five to seven percent. Insurance is the quiet third lever; coastal exposure and wildfire modeling have both nudged premiums upward and a $600 annual increase adds about $2,000 of required annual income.
What this does not include
The number is a floor for the housing payment; it does not include HOA dues (Portland and Cape Elizabeth condos frequently carry $300 to $700 monthly), private mortgage insurance if you put less than 20 percent down on conventional financing, or the upfront closing costs. Closing costs in Maine typically land near two to three percent of the loan amount inclusive of transfer tax, title work, and lender fees; buyers often negotiate seller credits to offset them.
How to use this on your actual file
If your gross income is above the town number in the table, the payment fits standard underwriting on paper. That is a starting point, not a green light: your other debts count against the same 43 percent. If your income is below, you have three real levers. Increase the down payment to lower the loan and the PITI; look at a lower-priced town on the same commute (Westbrook and Gorham are the workhorses here); or wait for a rate move that resets the entire table. All three are handled inside the 207 Number tool. Call or text Travis and we will pressure-test your exact scenario.
Frequently asked
Is $95,000 really enough for a house in southern Maine?
In Sanford, Lewiston, and parts of Waterville and Augusta the answer is yes at the current median. In Portland or Cape Elizabeth it is not, unless you bring a substantially larger down payment. The tool prices your exact town.
Does this include property taxes and insurance?
Yes. Every income number in this post uses full PITI, not principal and interest only. Skipping taxes and insurance is the single most common way online affordability calculators mislead Maine buyers.
What if I have student loans or a car payment?
Those count against the same 43 percent ceiling. Every $500 of monthly debt reduces your usable housing payment by $500. That reduces the required income by roughly $14,000, but it also lowers the price you can carry by roughly $70,000.
Does the 207 Number tool use a live rate?
It pulls the most recent Freddie Mac PMMS reading through the Market Pulse module and applies the exact math above. The number you see is anchored to a sourced index, framed with the full market-data disclaimer. No rate lock, no offer.
Related: The 207 Number · Market Pulse · First-time buyer guide · Moving to Maine cost guide