Can You Afford a Home in West Virginia’s Eastern Panhandle?
Housing affordability is a big topic right now. The National Association of REALTORS® uses the Housing Affordability Index (HAI) to answer a simple question: does a typical family earn enough to qualify for a mortgage on a typical (median-priced) home? The HAI assumes a 20% down payment and that your principal and interest payment is no more than 25% of your income. A score of 100 means a typical family can just afford a typical home. Above 100 is more affordable; below 100 is less affordable. You can see NAR’s latest national discussion here: Latest HAI data & graphs.
This 2025 Eastern Panhandle housing affordability update explains what the HAI means for buyers and sellers locally.
What the HAI Score Means (Plain English)
- HAI is a ratio. It compares what a typical family earns to what a family needs to earn to buy a typical home under the HAI rules.
- 100 = “just enough.” A score of 100 means the typical family income is exactly enough to qualify for the median-priced home (with 20% down and principal and interest capped at 25% of income).
- Above 100 = cushion. For example, 120 means the typical family earns 20% more than needed.
- Below 100 = shortfall. For example, 90 means the typical family earns 10% less than needed.
Our Local HAI Snapshot (Implied)
Using recent prices and rates with HAI’s simple rules (20% down, 30-year fixed, principal and interest only):
- Berkeley County: implied HAI is about 97—very close to 100.
- Jefferson County: implied HAI is about 98—also very close.
In plain speech: a typical household here is near the qualifying line for a typical home under HAI assumptions. Your number may differ based on your down payment, credit, other debts, and the exact home you choose. Small adjustments—like down-payment assistance, a rate buydown, or choosing a slightly different price point—can make a big difference.
Quick explainer: “Principal and Interest”
- Principal = the amount you borrowed.
- Interest = the lender’s charge for the loan.
HAI looks at these two pieces only. Real life also adds property taxes, homeowners’ insurance, and sometimes HOA dues.
National Snapshot
Mortgage rates have eased from last year’s highs (see the weekly average at Freddie Mac PMMS or the long-term trend on FRED). Prices remain firm in many places because supply is still tight. That mix—slightly lower rates and limited supply—keeps demand steady and homes moving when they’re priced and presented well.
Eastern Panhandle Snapshot
Recent data show a regional median price near $325,000 for the MD/WV Panhandle. County-level numbers help you plan: Berkeley County is around $336,265 with roughly 2.3 months of supply, and Jefferson County is around $400,000 with about 2.7 months of supply. In plain language: our market is active and competitive, but not out of control. Homes that are priced right and show well are still going under contract efficiently.
What This Means for Your Budget
Using the HAI method (20% down, 30-year fixed, principal and interest only), a Berkeley County median home (about $336,265) works out to roughly $1,711/month for principal and interest. Jefferson County’s median (about $400,000) is roughly $2,035/month for principal and interest. That suggests a qualifying household income of about $82,000 for Berkeley and $98,000 for Jefferson under HAI’s simple rules. Local incomes are close to those marks, which means many buyers are within reach—especially with a strong pre-approval and a realistic monthly plan.
“All-In” Matters
Remember, HAI looks at principal and interest only. Real life also includes property taxes, homeowners’ insurance, and sometimes HOA dues. West Virginia’s property taxes are generally lower than many nearby states. That often adds roughly $135/month on a ~$336K home and about $160/month on a ~$400K home (before insurance and HOA—your exact numbers will vary by location and coverage). Lower property taxes are a big reason Northern Virginia commuters often stretch their budgets further in our area.
Why the Eastern Panhandle Compares Well
Virginia’s statewide median price is higher (see the latest at Virginia REALTORS®), and many NoVA submarkets are higher still. When you combine our prices with WV’s lower property taxes, your monthly payment can go further in Charles Town, Ranson, Shepherdstown, and Martinsburg—especially if you’re hoping for a yard, a home office, or an easier path to a detached home. Explore our area pages for Charles Town and Shepherdstown.
Help for First-Time and Budget-Minded Buyers
The West Virginia Housing Development Fund offers programs that can help if you qualify, including the Homeownership Program, Low Down Home Loan, and Movin’ Up. Terms change over time, so we’ll connect you with participating lenders who use these programs every day.
A Simple Game Plan from The Kable Team
1) Get pre-approved first.
This shows what you can afford and helps you act fast when the right home appears. Start with our First-Time Buyer Guide for steps and timelines.
2) Build a true monthly budget.
Add property taxes, homeowners’ insurance, and any HOA/maintenance to your principal and interest. Our Buying Power Checklist and House-Hunting Tips can help you plan with confidence.
3) Compare commute and costs.
If you work in NoVA, weigh your monthly payment and your time on the road. See options on our Commutes page.
4) Start touring smart.
Browse Current Listings, then contact us for same-day tours when possible. Curious how we work? Visit Why Choose The Kable Team and Testimonials.