Houston Households Rank Low in Car-Buying Ability

Houston ranks seventh-worst in Bankrate.com’s 2017 Car Affordability Index.

A median-income household can afford to spend $370 per month on car payments in the Houston metro area, Bankrate says.

That assumes the car buyer follows the "20/4/10" rule: a 20 percent down payment, a four-year loan and payments and insurance equaling 10 percent of gross monthly income.

"A median-income household can afford the average new car in only one of the nation’s 25 largest metropolitan areas -- Washington, D.C. -- if it follows the 20/4/10 rule," accordinng to Bankrate.

The median Houston-area household can afford to spend just $18,858, according to the rankings. The average new car would cost $35,783 including sales tax.



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