How much house can you afford in Key West?
Median price is about $895,000. Here's the income, down payment, and monthly payment that actually go with it.
How much house can you afford?
Conventional loans typically allow up to 45–50% DTI; FHA up to 50%; jumbo around 43%. Adjust the cap to match your loan type.
What it takes to buy a median-priced home in Key West
The median home price in Key West, Florida is roughly $895,000. The table below assumes a 6.75% 30-year fixed rate, taxes and insurance estimated at 1.50% of value per year, and no other monthly debt payments. Real numbers move with your credit score, actual property taxes, HOA dues, and — in Florida — flood and wind coverage.
| Down payment | Cash needed | Est. monthly payment | Income needed (43% DTI) |
|---|---|---|---|
| 3% (conventional) | $26,850 | $6,750/mo | $188,360/yr |
| 3.5% (FHA) | $31,325 | $6,721/mo | $187,550/yr |
| 5% | $44,750 | $6,633/mo | $185,120/yr |
| 10% | $89,500 | $6,343/mo | $177,020/yr |
| 20% | $179,000 | $5,763/mo | $160,820/yr |
Payments exclude mortgage insurance and HOA dues. Below 20% down, budget roughly $90–$160 per month of mortgage insurance per $300,000 borrowed on conventional, or the FHA MIP schedule on FHA.
Three Key West price points and the income behind them
- $671,250 with 10% down and $500 of other monthly debt needs about $146,718 of household income.
- $895,000 with 10% down and $500 of other monthly debt needs about $190,973 of household income.
- $1,118,750 with 10% down and $500 of other monthly debt needs about $235,228 of household income.
Loan limits that apply here
The 2026 conforming loan limit is $990,150, and the FHA limit is $990,150 in Monroe County. Financing above the conforming limit is a jumbo loan — typically 10%+ down, a 700+ score, and documented reserves. VA borrowers with full entitlement have no loan limit at all.
Ways to buy in Key West with less cash
- VA: 0% down and no monthly mortgage insurance for eligible veterans and service members.
- USDA: 0% down in eligible rural areas, subject to household income limits.
- FHA: 3.5% down with credit scores as low as 580 and more flexible DTI.
- Conventional 97: 3% down for qualified buyers, with cancellable mortgage insurance once you hit 20% equity.
- Gift funds: Allowed on all of the above from an eligible donor with a documented gift letter.
Key West affordability FAQs
What income do I need to buy a median-priced home in Key West?
At a $895,000 price with 10% down, a 6.75% rate, and no other monthly debt, you'd need roughly $177,020 a year at a 43% debt-to-income ratio. Every $500 of car and credit payments adds roughly $13,953 to the income requirement.
How much is the down payment on a Key West home?
Conventional loans start at 3% down ($26,850 on a median Key West home), FHA at 3.5% ($31,325), and VA and USDA at 0% for eligible borrowers. Twenty percent ($179,000) removes mortgage insurance but is not required.
Do I need 20% down to buy in Key West, FL?
No. Most Florida buyers put down far less than 20%. Below 20% you pay mortgage insurance on conventional and FHA loans, but the payment difference is usually far smaller than the years it takes to save the extra cash — especially while prices move.
What loan limits apply in Monroe County?
The 2026 conforming limit is $990,150 and the FHA limit is $990,150. Above the conforming limit you're in jumbo territory, which generally means tighter credit, reserve, and down payment requirements.
Related: Key West mortgage guide · Mortgage payment calculator · DTI calculator · Get pre-approved
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Real numbers from a licensed Colorado & Florida mortgage broker.