The typical owner-occupied home in Palos Heights is worth about $367,100, 39% above the Illinois median of $263,300 and 10% above the national median of $332,700. Owners pay a median $7,624 a year in property taxes, about 2.08% of their home's value, close to the Illinois rate of 2.01%. The median household earns $108,740 a year, so the median home costs 3.4 times the median income (3.2 times for Illinois). 93% of occupied homes here are lived in by their owners, and 58% of those owners still have a mortgage.
Palos Heights at a glance
| Palos Heights | Illinois | U.S. | |
|---|---|---|---|
| Median home value | $367,100 | $263,300 | $332,700 |
| Median property tax paid per year | $7,624 | $5,298 | $3,119 |
| Property tax as a share of value | 2.08% | 2.01% | 0.94% |
| Median household income | $108,740 | $83,390 | $80,734 |
| Homes lived in by their owners | 93% | 67% | 65% |
| Owner homes with a mortgage | 58% | 61% | 61% |
| Median monthly costs, owners with a mortgage | $2,576 | $1,987 | $1,963 |
| Those costs as a share of the owners' income | 20.1% | 20.6% | 21.0% |
| Median rent | $2,558 | $1,274 | $1,413 |
| Rent as a share of renters' income | 51.0% | 29.1% | 30.6% |
| Median year homes were built | 1976 | 1971 | 1980 |
| Vacant homes | 5.2% | 7.7% | 10.1% |
| Population | 12,152 | 12,694,798 | 334,922,499 |
What a typical home costs per month in Palos Heights
At this week's average 30-year rate of 7.11%, buying the median Palos Heights home of $367,100 with 20% down costs about $2,765 a month, including property taxes and insurance. With an FHA loan and 3.5% down, it's about $3,376, because the loan is bigger and FHA adds mortgage insurance.
Lenders usually want housing costs under about 28% of gross income, which means an income of roughly $118,494 for the 20%-down payment. That payment is 31% of the median Palos Heights household income of $108,740; at that income and 20% down, the 28% guideline points to a home of about $337,000.
The median rent here is $2,558 a month, so owning the median home costs about $207 a month more than renting, before you count the equity you build and any tax benefits.
| Down payment | $73,420 |
|---|---|
| Loan amount | $293,680 |
| Principal and interest | $1,976 |
| Property taxes (2.08% a year) | $636 |
| Homeowners insurance (our estimate, 0.5% a year) | $153 |
| PMI | $0 |
| Total per month | $2,765 |
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| Down payment | $12,848 |
|---|---|
| Loan amount | $360,451 |
| Principal and interest | $2,425 |
| Property taxes (2.08% a year) | $636 |
| Homeowners insurance (our estimate, 0.5% a year) | $153 |
| FHA mortgage insurance | $162 |
| Total per month | $3,376 |
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Questions about home buying in Palos Heights
What is the median home value in Palos Heights?
About $367,100 for owner-occupied homes, according to the Census Bureau's 2020–2024 American Community Survey.
How much are property taxes in Palos Heights?
Homeowners pay a median $7,624 a year, which is about 2.08% of the median home value. Your bill depends on your home's assessed value and local rates.
What income do you need to buy a home in Palos Heights?
For the median home with 20% down at 7.11%, the payment is about $2,765 a month. Keeping that under 28% of gross income takes about $118,494 a year.
More about Palos Heights
- Mortgage Refinance in Palos Heights
- Debt Relief in Palos Heights
- Home Equity Loans in Palos Heights
- Guides and quotes for mortgage refinance on our sister site, MortgageRefinance.com
Sources: U.S. Census Bureau, American Community Survey 2020–2024 5-year estimates; Freddie Mac Primary Mortgage Market Survey, week of November 12, 2026. Estimates for small places have wide margins of error. About our data