How Much Income Do You Need to Buy a Home in Cedar City, Utah in 2026?
By Scott Jolley, Realtor, Scott Jolley Team | Fathom Realty, Cedar City, Utah. Published October 21, 2026.
Short answer: To buy a median-priced home in Iron County right now, most households need roughly $108,000 a year with 20% down, or about $123,000 a year with an FHA loan and 3.5% down. That is based on the September 2026 Iron County median sale price of $399,450 and the October 15, 2026 average 30-year mortgage rate of 7.40%. Cedar City's median household income is about $63,600, which is why so many local buyers are stretching, buying smaller, or looking at Enoch and newer townhomes.
I get this question almost every week, usually phrased as "Can we actually afford to buy here?" Here is how I walk clients through the math, using numbers you can check yourself.
What does a median-priced home in Iron County cost right now?
The median sale price in Iron County was $399,450 in September 2026, up 3.8% from $385,000 in September 2025, according to the Utah Association of REALTORS county market update. Year to date, the median is $415,500 across 923 closed sales. September closings were down to 91 from 127 a year earlier, so fewer homes are changing hands even though prices are still inching up. I break those numbers down in my September 2026 Iron County market update.
For comparison, the median in neighboring Washington County (St. George area) was $499,495 in September 2026. Cedar City still costs about $100,000 less than St. George for the typical home.
What is the monthly payment on a $399,450 home in Cedar City?
With 20% down, expect a total monthly payment of about $2,510. Here is the breakdown I use:
- Down payment (20%): $79,890
- Loan amount: $319,560
- Principal and interest at 7.40%, 30-year fixed: about $2,213
- Property taxes: about $146 per month (Cedar City's median effective rate is about 0.44% of value)
- Homeowners insurance: about $151 per month (average Cedar City estimate of $1,815 a year)
Here is how the two most common loan types compare on the same $399,450 home:
| Item | Conventional, 20% down | FHA, 3.5% down |
|---|---|---|
| Cash for down payment | $79,890 | about $13,980 |
| Total monthly payment (Oct 2026) | about $2,510 | about $3,190 |
| Household income needed | about $107,600 | about $123,500 |
Utah's primary-residence exemption is a big reason our property taxes are lower than in many states. If you buy a home you will live in, make sure the county has it recorded as your primary residence.
How much income do I need with 20% down?
About $107,600 a year in gross household income. Many lenders like to see your housing payment at or under about 28% of gross monthly income. $2,510 a month divided by 28% is about $8,965 a month, or $107,600 a year. Your other debts (car loans, student loans, credit cards) also count, so this is a starting point, not an approval.
How much income do I need with an FHA loan and 3.5% down?
About $123,500 a year, but you only need about $14,000 for the down payment instead of nearly $80,000. With FHA:
- The base loan is about $385,469, plus a 1.75% upfront mortgage insurance premium that is usually added to the loan
- Annual FHA mortgage insurance is 0.55% of the loan, about $177 a month
- Total payment at 7.40% runs about $3,190 a month including taxes and insurance
FHA guidelines generally allow a housing payment of about 31% of gross income, which works out to roughly $123,500 a year. FHA rates are often a little different from conventional rates, so get a real quote before you decide.
What can a median-income household in Cedar City afford?
Roughly $225,000 to $230,000 with 20% down at today's rates. Cedar City's median household income is $63,589 (U.S. Census Bureau, 2020–2024 American Community Survey). At 28% of gross income, that household can spend about $1,484 a month on housing. With current rates, taxes and insurance, that supports a purchase price of about $226,000.
That gap between what the typical household earns and what the typical home costs is the single biggest issue in our market. It is not a reason to give up. It is a reason to plan carefully.
How do Cedar City buyers close the affordability gap?
In my experience, buyers who make it work usually combine two or three of these:
- Two incomes, or adding a co-borrower. Lenders count all qualifying income on the loan.
- Buying a townhome or smaller starter home below the median, then trading up later.
- Looking at Enoch, Parowan or newer subdivisions where price per square foot can differ from central Cedar City.
- Asking for seller-paid concessions to buy down the rate. With fewer September closings than last year, many sellers are open to negotiating.
- Using Utah down payment help. Utah Housing Corporation offers down payment assistance programs for qualifying buyers. Ask your lender which ones you qualify for.
- Getting pre-approved before you shop. A real pre-approval tells you your true number, which is often different from online calculators.
How much does a 1% lower rate change the payment?
On a $319,560 loan, dropping from 7.40% to 6.40% saves about $214 a month in principal and interest, more than $2,500 a year. That is why seller-paid rate buydowns can matter as much as price reductions right now.
Frequently asked questions
What is the median home price in Cedar City, Utah?
The median sale price in Iron County, which includes Cedar City, was $399,450 in September 2026 and $415,500 year to date, according to the Utah Association of REALTORS.
What salary do you need to buy a house in Cedar City?
About $108,000 a year with 20% down, or about $123,000 a year with an FHA loan and 3.5% down, for a median-priced Iron County home at a 7.40% mortgage rate (October 2026).
How much are property taxes in Cedar City?
Cedar City's median effective property tax rate is about 0.44% of market value for a primary residence. On a $399,450 home, that is roughly $1,760 a year.
Is Cedar City cheaper than St. George?
Yes. In September 2026 the median sale price was $399,450 in Iron County versus $499,495 in Washington County, a difference of about $100,000.
Can I buy in Cedar City with less than 20% down?
Yes. FHA loans allow 3.5% down, and conventional loans can go as low as 3% to 5% down with mortgage insurance. Utah Housing Corporation also offers down payment assistance for qualifying buyers.
What should you do next?
If you are thinking about buying in Cedar City, Enoch or anywhere in Iron County, start with a real pre-approval and a short conversation about what you want. I am happy to run these numbers for your situation and connect you with local lenders who know Utah's down payment programs. You can search homes on my site, read my Cedar City relocation guide, or call or text me at (435) 701-0148.
About the author: Scott Jolley is a Realtor and leads the Scott Jolley Team with Fathom Realty at 755 S Main St, Suite 4, Cedar City, UT 84720. He has been licensed in Utah real estate since 2015, worked in mortgage lending earlier in his career, and served as President and CEO of the Cedar City Area Chamber of Commerce. More about Scott.
Sources
- Utah Association of REALTORS, Local Market Updates by County, September 2026 (Iron County and Washington County closed sales and median sales price): uar.stats.showingtime.com
- Freddie Mac Primary Mortgage Market Survey, week of October 15, 2026 (30-year fixed average 7.40%), via Mortgage News Daily
- U.S. Census Bureau QuickFacts, Cedar City, Utah (median household income, 2020–2024): census.gov
- Ownwell, Cedar City property tax trends (median effective rate 0.44%, updated April 2026): ownwell.com
- NerdWallet, Utah home insurance (Cedar City average $1,815 per year, updated March 2026): nerdwallet.com
- U.S. Department of Housing and Urban Development, Mortgagee Letter 2023-05 (FHA upfront premium 1.75%, annual premium 0.55% for most 30-year loans, effective March 20, 2023): hud.gov
Payment estimates are for illustration only and are not a loan offer. Your rate, taxes, insurance and mortgage insurance will depend on your credit, loan type and property. Talk with a licensed lender for a quote.
