Federal mortgage records show the typical financed buyer's income ranged from about $77,000 in Madison Heights to more than $300,000 in Birmingham, and that "20% down" was the norm in only some cities.
By BIG Real Estate · November 2, 2026
Most "how much do I need to earn" articles start with a calculator and an assumed down payment. This one starts with what buyers actually did. Every year, mortgage lenders report each home loan they make under the federal Home Mortgage Disclosure Act (HMDA), including the property's value, the loan amount, the borrower's income and the census tract where the home sits. We matched the 2025 records for Oakland County to the city or township each census tract falls in. The result is a city-by-city picture of the roughly 12,900 people who bought a home with a mortgage in Oakland County last year.
Two findings stand out. First, the income of the typical financed buyer varied more than fourfold across our service area. Second, a 20% down payment was the norm only in some cities. In Madison Heights, Oak Park and Southfield, more than half of buyers put down 5% or less.
How we built the numbers
The data is the FFIEC HMDA Data Browser file of 2025 originated home-purchase loans in Oakland County. We kept first-lien loans on one-unit homes the buyer will live in, and we left out reverse mortgages, home-equity lines and business loans. That leaves 12,899 loans countywide. We assigned each loan's census tract to a city or township using the Census Bureau's 2020 block assignment file. In 345 of Oakland County's 350 tracts, at least 90% of the census blocks fall in one municipality. None of the five split tracts are in the cities in our table.
Keep three limits in mind:
- Cash purchases are not included. HMDA covers mortgage loans only, and some smaller lenders don't have to report. These figures describe financed buyers, not every buyer.
- The figures are rounded at the source. Loan amounts and property values are published as the midpoint of $10,000 bands, and incomes are rounded to the nearest $1,000. Medians are therefore approximate.
- "Value" means the value the lender relied on, usually the appraisal or the price. It is not a sale-price index. A city's median also reflects which homes sold that year, not only price changes.
Down payment is estimated as 100% minus the combined loan-to-value ratio. That ratio includes any second loan, so it reflects the buyer's own cash.
The city-by-city picture
2025 home-purchase mortgages in Oakland County, owner-occupied one-unit homes, first liens. Each line: number of loans · median home value · median loan · typical down payment · share putting 20%+ down · share putting 5% or less down · share FHA, VA or USDA · median household income.
- Bloomfield Hills (city)*: 31 loans · $1,205,000 · $745,000 · 20% down · 87% put 20%+ · 6% put 5% or less · 0% gov't-backed · income $383,000
- Birmingham: 223 · $885,000 · $655,000 · 20% · 71% · 12% · 1% · $309,000
- Bloomfield Township: 442 · $715,000 · $565,000 · 20% · 63% · 19% · 4% · $247,500
- Southfield Township**: 154 · $615,000 · $495,000 · 20% · 53% · 32% · 6% · $227,500
- Rochester: 102 · $535,000 · $365,000 · 20% · 61% · 24% · 3% · $165,000
- Troy: 759 · $465,000 · $385,000 · 20% · 50% · 28% · 4% · $150,000
- Rochester Hills: 641 · $465,000 · $375,000 · 20% · 53% · 27% · 7% · $144,000
- Royal Oak: 817 · $375,000 · $325,000 · 15% · 46% · 32% · 6% · $136,000
- Berkley: 255 · $355,000 · $295,000 · 10% · 43% · 38% · 7% · $125,000
- Lathrup Village*: 34 · $305,000 · $280,000 · 10% · 36% · 39% · 18% · $121,000
- Clawson: 163 · $315,000 · $275,000 · 10% · 31% · 41% · 7% · $100,000
- Ferndale: 304 · $275,000 · $235,000 · 10% · 35% · 44% · 9% · $100,000
- Southfield (city): 518 · $265,000 · $235,000 · 5% · 23% · 61% · 29% · $95,000
- Oak Park: 240 · $245,000 · $225,000 · 5% · 23% · 52% · 26% · $85,000
- Madison Heights: 301 · $235,000 · $215,000 · 5% · 22% · 59% · 13% · $77,000
- Oakland County: 12,899 · $375,000 · $315,000 · 12% · 45% · 36% · 10% · $126,000
* Fewer than 40 loans; treat as indicative only. ** Southfield Township includes the villages of Beverly Hills, Bingham Farms and Franklin. "Typical down payment" is the median of 100% minus combined loan-to-value, rounded. Source: FFIEC HMDA 2025; BIG Real Estate analysis.
What the numbers say
Income tracks price closely. In every city in the table, the typical home value was roughly 2.5 to 3.2 times the typical financed buyer's household income. Birmingham buyers reported a median income of about $309,000 on an $885,000 median value, a ratio of about 2.9. Madison Heights buyers reported about $77,000 on $235,000, about 3.1. Buyers in expensive and affordable cities stretched by similar amounts. What changed with price was the down payment, not how far buyers reached relative to income. HMDA counts the income the lender used to qualify the loan, which may be less than everything a household earns.
"20% down" is a habit of the pricier markets, not a rule. Countywide, 45% of financed buyers put down 20% or more, and 36% put down 5% or less. The split follows price. In Birmingham, 71% of buyers put down at least 20%. In Southfield, 61% put down 5% or less. Royal Oak sits in the middle, with almost a third of buyers at 5% or less and close to half at 20% or more. Plenty of people are buying in our area with small down payments, so a buyer who has saved 5% is not unusual in any of these cities.
Government-backed loans matter in some cities and barely appear in others. FHA, VA and USDA loans were 29% of purchases in Southfield and 26% in Oak Park, compared with 4% in Troy and 1% in Birmingham. For sellers, this tells you what kind of offers to expect. In Southfield or Oak Park, an FHA or VA offer is ordinary. These loans come with their own appraisal and property-condition standards, and those are worth understanding before you list.
Rates were similar everywhere. The median 2025 rate was 6.5% to 6.625% in every city in the table, except Bloomfield Hills (6.25%) and Bloomfield Township (6.375%), where buyers with larger loans and more equity tended to get slightly lower rates.
What the same purchase costs at today's rates
Mortgage rates are higher now than when most of these loans closed. Freddie Mac's weekly survey put the average 30-year fixed rate at 7.24% on October 29, 2026. Here is the monthly principal and interest on each city's median 2025 loan at 6.5% (close to what 2025 buyers typically paid) and at 7.24%:
- Birmingham ($655,000 loan): $4,140 → $4,464 (+$324)
- Bloomfield Township ($565,000): $3,571 → $3,850 (+$279)
- Troy ($385,000): $2,433 → $2,624 (+$191)
- Rochester Hills ($375,000): $2,370 → $2,556 (+$186)
- Royal Oak ($325,000): $2,054 → $2,215 (+$161)
- Berkley ($295,000): $1,865 → $2,010 (+$145)
- Clawson ($275,000): $1,738 → $1,874 (+$136)
- Ferndale ($235,000): $1,485 → $1,602 (+$117)
- Southfield ($235,000): $1,485 → $1,602 (+$117)
- Oak Park ($225,000): $1,422 → $1,533 (+$111)
- Madison Heights ($215,000): $1,359 → $1,465 (+$106)
These figures are principal and interest only. Property taxes, insurance and any mortgage insurance come on top. Taxes in particular can be much higher for a new owner than for the seller, because Michigan resets a home's taxable value the year after it sells (our explainer on "uncapping").
To keep the same payment at 7.24% that a 2025 buyer had at 6.5%, you would need to borrow roughly 7% less. For a Royal Oak buyer, that means about $301,000 instead of $325,000. You can close that gap with a bigger down payment, a lower price, a seller-paid rate buydown, or some combination.
What it means for you
First-time buyers. Don't let the "20% down" rule keep you out of the market. Roughly a third of last year's financed buyers in Oakland County put down 5% or less, and in several of our cities that was the majority. Smaller down payments do cost more each month, through mortgage insurance and a larger loan, so compare a few loan options side by side. Oakland County also has a first-time buyer grant. The Treasurer's Office and Independent Bank offer a $5,000 down-payment and closing-cost grant to buyers at or below 120% of area median income. The program page lists $127,320 for 2026, but it also shows an older figure, so confirm the limit with the program. Funding is first-come, first-served, and the grant requires a mortgage through Independent Bank and pre-purchase counseling.
Move-up buyers. In Troy, Rochester Hills and the Bloomfields, at least half of financed buyers put 20% or more down, and many were likely using equity from a previous home. If you are competing in those cities with a smaller down payment, a strong pre-approval and a clean offer matter more than they would in Ferndale or Southfield.
Sellers. Knowing the typical buyer in your city helps you price and negotiate. In cities where FHA and VA loans are common, expect appraisal and repair requirements, and possibly requests for closing-cost help. With mortgage rates roughly 0.6 to 0.75 point above what 2025 buyers typically paid, a seller credit toward a rate buydown may do more for a buyer than a similar price cut. Our fall selling guide covers that trade-off.
What this data can't tell you
HMDA describes 2025, and the market has changed since then. Oakland County inventory was up about 25% from a year earlier in September (our September market report), and rates are higher. The data also leaves out cash buyers, who often compete hardest at the top and bottom of the market. City medians hide large differences between neighborhoods, condos and single-family homes. The 2026 HMDA data, expected around March 2027, will show whether higher rates have changed who is able to buy.
The useful takeaway is narrower than any one number. In Southeast Oakland County, people buy homes with a wide range of incomes and down payments, and what is typical depends a lot on the city. Before you set a budget, find out what buyers in the specific city you're considering actually brought to the closing table.
This article is general information, not mortgage, tax or financial advice. Loan terms, program limits and eligibility change; confirm details with a lender and the program administrator. Figures are from public HMDA records as described above; calculations are BIG Real Estate's.