It's really troubling when you look at the salaries of school teachers around the country, especially when factoring in their contribution to society. Studies show, as well as common sense, that a teacher’s influence in the classroom is the main reason why students choose to graduate high school, go to college, and later become prosperous adults.

From the onset, teachers are the driving force behind America’s economy and national well-being. The success of every single industry, around the world, is all attributable to school teachers, which goes as far back as the first lessons learned in pre-school. We all have a favorite teacher that we appreciate for teaching us valuable lessons about life, and the importance of an education. For these reasons, a great teacher’s worth is countless. So, why are teachers underpaid, and unable to afford a new home?

Teaching is already more than a 40-hour-a-week job. If you throw into the mix that many teachers are commuting over an hour each way to get to school because they can’t afford to live where they teach. Then combine that with the fact that many are struggling to repay student loans, and credit card debts. Its not hard to understand why there is a lack of educators in the school system.

Most public school teachers are solidly middle-class. Salaries for a certified teacher are based on a number of factors including education, experience, the type of school, and the school district. The national average public school teacher salary in 2016-17 was $59,660 —up from $58,353 in 2015-16. The National Education Association (NEA) estimated that the average salary for 2017-18 is $60,483.

So, how much home can a school teacher afford making $60,000 per year?

Today, for teachers bringing home income in the $60,000 range doesn't mean it's impossible to purchase a new home.

The usual rule of thumb is that buyers can afford a mortgage 2 to 2.5 times their annual income. Typically, that's a $120,000 to $150,000 mortgage at $60,000. You also have to be able to afford the monthly mortgage payments.

Under the 28/36 rule, lenders want your principal, interest, taxes and insurance – referred to as PITI – to be 28 percent or less of your gross monthly income. A school teacher can cover a $1,400 monthly PITI mortgage payment if their monthly income is $5,000, ($5,000 x 0.28 = $1,400). To keep housing costs down to 25% of their income, teachers would have to spend $1,250 or less.

Monthly debt payments, including credit card bills and student loans, shouldn't exceed 36% of your gross income, ($5,000 x 0.36 = $1,800). A teacher with $1,400 in PITI payments might also have a $200 monthly car payment, and a $250 student loan payment; back-end monthly debt payments would tally to $1,850 per month. To qualify under the back-end ratio, a teacher would need to earn at least $5,139 ($1,850 / 0.36 = $5,138.88) in gross monthly income.

Tight inventory fueled by a tight labor market, and low interest rates, propelled home values to record heights across the United States. There are certain metro areas where home prices are so high compared to the average teacher's salary that a teacher would never be able to purchase a home without the assistance of various home loan programs.

With different home loan programs available such as the Good Neighbors Next Door, Educator Mortgage Program, Homes for Heroes,Teacher Next Door, Neighborhood Assistance Corporation of America, and FHA loans, teachers making $60,000 per year can afford homes in the range of $200,000 to $350,000.

Some home loan programs, such as Neighborhood Assistance Corporation of America, offer home buyers no down payment, no closing costs, no fees, no income limit, and no need for perfect credit.

An FHA (Federal Housing Administration) mortgage generally requires a household to qualify under a 31/43 rule, but this rule can be further relaxed in specific scenarios. In addition, with a FHA loan only a 3% down payment is required.  Under the 31/43 rule, a school teacher can cover a $1,550 monthly PITI ($5,000 x 0.31 = $1,550), or all debt inclusive PITI of $2,150, ($5,000 x 0.43 = $2,150).

The median home value in the United States is $217,300. The median price of homes currently listed in the United States is $279,500, while the median price of homes that sold is $231,700. The median rent price in the United States is $1,695.

States like New Jersey, New York, and Pennsylvania contain prices that are within reach of a teacher’s salary through a home loan program.

The median home value in New Jersey is $318,300. The median price of homes currently listed in New Jersey is $334,900 while the median price of homes that sold is $273,900. The median rent price in New Jersey is $2,000.  

In New York, the median home value is $282,100, the median price of homes listed is $385,000, and the median rent price is $3,300.

In Pennsylvania, the median home value is $169,000, the median price of homes listed is $215,900, the median price of homes that sold is $161,500, and the median rent price is $1,395.

If a teacher purchased a 30-year fixed rate mortgage, at an annual interest rate at 4%, and a mortgage loan amount of $210,000, the monthly principal, interest, taxes and insurance (PITI) payment would be around $1,530 each month.

Due to multiple home loan programs, teachers are able to select their next home while they unselfishly shape the next generation.