When everyone needs a separate individual house that they refuse to share, then per capita income will be relevant.
But in the real world, people buy houses because they want to share them with their family. On average, 2.5 people live in a single house. And the median household income is $63K in Michigan.
So if you really want to look at per capita income, that means there is $87.5K (2.5 x $35K) available to buy a house, which is easily enough to afford a $300K home.