Cities Where Dave Ramsey’s 25% Housing Rule Still Works

In five major U.S. metro areas—Los Angeles, San Diego, San Francisco, Seattle, and New York City—median home prices far exceed what median household incomes can afford under a 25% mortgage payment rule. Even with a 20% down payment and a 15-year mortgage at 5.82%, monthly payments surpass affordable limits by thousands of dollars. Solutions include longer loans, buying fixer-uppers, or increasing income.