How Much House Can I Afford?
Use the 28/36 rule, our free calculator, and salary-based tables to find exactly how much home you can buy in 2026.
The answer depends on three things: your income, your existing debts, and your down payment. The general rule: you can afford a home that costs 3-5x your annual gross income. But let's get more precise.
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Open Mortgage Calculator →The 28/36 Rule
This is the standard lenders use to determine how much you can borrow:
28% Rule — Housing Costs
Your total monthly housing payment (mortgage + property taxes + homeowner's insurance + PMI) should be no more than 28% of your gross monthly income.
36% Rule — Total Debt
Your total monthly debt payments (housing + car + student loans + credit cards + other) should be no more than 36% of your gross monthly income.
Home Affordability by Salary (2026)
Assuming 6.5% mortgage rate, 20% down payment, $400/mo taxes + insurance, and no other debt:
| Annual Salary | Monthly Budget (28%) | Max Home Price |
|---|---|---|
| $50,000 | $1,167 | $190,000 |
| $75,000 | $1,750 | $285,000 |
| $100,000 | $2,333 | $395,000 |
| $125,000 | $2,917 | $505,000 |
| $150,000 | $3,500 | $620,000 |
| $200,000 | $4,667 | $845,000 |
| $250,000 | $5,833 | $1,070,000 |
| $300,000 | $7,000 | $1,300,000 |
Important: These are maximums. Many financial advisors recommend spending no more than 25% of take-home (not gross) pay on housing for financial comfort.
How Debt Affects Affordability
Existing debts reduce how much house you can afford. The 36% total debt rule means every $500/month in existing payments reduces your home budget by approximately $80,000.
| Salary: $100K | No Debt | $300/mo Car | $500/mo Car + Student | $800/mo Total Debt |
|---|---|---|---|---|
| Max home price | $395,000 | $345,000 | $310,000 | $260,000 |
| Reduction | — | -$50K | -$85K | -$135K |
Down Payment: How Much Do You Need?
| Loan Type | Min Down Payment | PMI Required? | Best For |
|---|---|---|---|
| Conventional | 3-5% | Yes, until 20% equity | Good credit (620+) |
| Conventional 20% | 20% | No | Best rates, no PMI |
| FHA | 3.5% | Yes, entire loan life | Lower credit (580+) |
| VA | 0% | No | Veterans/military |
| USDA | 0% | No | Rural areas, income limits |
On a $400,000 home: 3% down = $12,000, 10% = $40,000, 20% = $80,000. The 20% down option saves you PMI ($150-350/month) and gets better rates, saving $50,000+ over the life of the loan.
Hidden Costs Most Buyers Forget
- Closing costs: 2-5% of home price ($8,000-20,000 on a $400K home)
- Property taxes: Average 1.1% of value ($4,400/year on $400K)
- Homeowner's insurance: $1,500-3,000/year
- PMI: $100-350/month if under 20% down
- Maintenance: Budget 1-2% of home value per year ($4,000-8,000)
- HOA fees: $200-500/month in many communities
- Moving costs: $1,500-5,000+
💡 Total First-Year Cost on a $400K Home
Down payment (20%): $80,000 + Closing costs: $14,000 + Moving: $3,000 = $97,000 cash needed before your first mortgage payment.
Interest Rates Matter — A Lot
On a $320,000 loan (30-year term), here's how rates change your monthly payment and total cost:
| Rate | Monthly Payment | Total Interest | Total Cost |
|---|---|---|---|
| 5.0% | $1,718 | $298,280 | $618,280 |
| 5.5% | $1,817 | $333,920 | $653,920 |
| 6.0% | $1,919 | $370,720 | $690,720 |
| 6.5% | $2,023 | $408,280 | $728,280 |
| 7.0% | $2,129 | $446,440 | $766,440 |
| 7.5% | $2,238 | $485,680 | $805,680 |
A 1% rate difference (6% vs 7%) costs $75,720 more over 30 years. This is why improving your credit score before buying can save you tens of thousands.
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Calculate Now — Free →Frequently Asked Questions
How much house can I afford on a $100,000 salary?
With no other debt and 20% down, you can afford approximately $395,000-$420,000. With $500/month in existing debt payments, this drops to about $310,000. Use our mortgage calculator for your exact number.
What is the 28/36 rule?
Spend no more than 28% of gross monthly income on housing (mortgage + taxes + insurance), and no more than 36% on total debt. On $8,333/mo gross ($100K salary): max housing = $2,333, max total debt = $3,000.
How much do I need for a down payment?
3-20% for conventional loans, 3.5% for FHA, 0% for VA/USDA. Putting 20% down avoids PMI and gets better rates. On a $400K home: 3% = $12K, 10% = $40K, 20% = $80K.
What credit score do I need to buy a house?
Minimums: FHA = 580, Conventional = 620, VA = typically 620+. For the best rates, aim for 740+. Each 20-point increase saves 0.125-0.25% on your rate, which means thousands over the loan's life.