How Much House Can I Afford?
Select your salary to see your affordable home price range — broken down by down payment, DTI, and 2026 mortgage rates.
The 28% Rule
Lenders recommend spending no more than 28% of your gross monthly income on housing costs (mortgage, taxes, and insurance). At 36% DTI, you can stretch further but leave less room for other debt. Use the salary cards below to find your range.
Key rules of thumb
Housing cost limit
Monthly mortgage + property taxes + insurance should stay under 28% of gross monthly income for comfortable homeownership.
Income multiplier
A quick estimate: you can typically afford a home worth 3–5× your annual income, depending on down payment and debt load.
Ideal down payment
A 20% down payment eliminates PMI, reduces your monthly payment, and typically qualifies you for a better interest rate.
Total debt limit
Total monthly debt payments (mortgage + car + student loans + credit cards) should stay under 36% of gross monthly income.
How we calculate affordability
Each salary card shows the affordable home price range based on the 28% rule (conservative) and 36% DTI (aggressive), modeled at a 2026 mortgage rate of approximately 6.9% on a 30-year fixed loan. The low end assumes a 10% down payment at 28% DTI; the high end assumes 20% down at 36% DTI. We assume no existing monthly debt — if you have car payments or student loans, your actual limit will be lower.
Use our Mortgage Calculator to model your exact monthly payment, or the individual salary pages above for a full scenario breakdown.
Hidden Costs That Affect What You Can Afford
The salary cards above show home price ranges based on principal and interest only. Your actual monthly housing cost includes several additional items that reduce your effective purchasing power:
On a $350,000 home in a typical market, total monthly housing costs including taxes, insurance, and PMI often run $400–$800 above the principal-and-interest figure. Always model total PITI before deciding what you can afford.