How much house can I afford? It’s one of the first questions every buyer asks, and the honest answer depends on more than your salary. Your monthly debts, your down payment, your interest rate, and local property taxes all change the number. Use the calculator below to get your own estimate, then read on to see realistic price ranges for incomes of $60,000, $80,000, and $100,000 a year.
Car loans, student loans, minimum credit card payments. Don’t include rent.
Maximum home price
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- Monthly payment$0
- Principal & interest$0
- Property tax$0
- Home insurance$0
- PMI$0
- HOA fees$0
Estimates for illustration only. Lenders also look at your credit score, savings and employment history, so your approved amount may be different.
Quick Answer: Home Prices by Salary
The table below uses the same assumptions for every income: a $25,000 down payment, a 7% interest rate on a 30-year fixed loan, 1.1% property tax, $1,800 a year in homeowners insurance, and PMI at 0.5% a year. It applies the conservative 28/36 rule that many lenders use as a starting point.
| Annual income | Max home price (no other debts) | Max home price ($700/month in other debts) |
|---|---|---|
| $60,000 | About $178,600 | About $141,100 |
| $80,000 | About $237,100 | About $216,200 |
| $100,000 | About $295,500 | About $291,300 |
If you’re asking “how much house can I afford” at these incomes, treat these figures as estimates, not approval amounts. Your lender will look at your full financial picture, and lower rates or a bigger down payment can raise these numbers.
How Lenders Decide What You Can Afford
When you ask a lender “how much house can I afford?”, most start with your debt-to-income ratio (DTI): the share of your gross monthly income that goes to debt payments. A common guideline is the 28/36 rule:
- 28% rule: your total housing payment (principal, interest, taxes, insurance, PMI, and HOA fees) should be no more than 28% of your gross monthly income.
- 36% rule: your housing payment plus all other monthly debts (car loans, student loans, credit card minimums) should be no more than 36% of your gross monthly income.
Your budget is the lower of the two limits. For example, on an $80,000 salary your gross monthly income is about $6,667:
- 28% of $6,667 = about $1,867 for housing.
- 36% of $6,667 = about $2,400 for all debts. With $700 in other debts, that leaves $1,700 for housing.
In that case, the 36% rule is the one that limits you, so your housing budget is $1,700, not $1,867.
Some loan programs allow higher ratios. FHA loans, for example, commonly use 31% for housing and 43% for total debts, which is why our calculator includes a “Stretch” option. A higher ratio can get you approved for more, but it also leaves less room in your monthly budget.
How Much House Can I Afford on $60K a Year?
With a $60,000 salary and no other debts, your housing budget under the 28% rule is about $1,400 a month. With a $25,000 down payment and a 7% rate, that points to a home price of around $178,600.
If you also have $700 a month in other debts, the 36% rule becomes the limit. Your housing budget drops to about $1,100 a month, and your maximum home price falls to about $141,100. Paying down a car loan or credit card before you apply can make a real difference at this income level.
How Much House Can I Afford on $80K a Year?
At $80,000 a year with no other debts, you can spend about $1,867 a month on housing. That supports a home price of around $237,100 with the same assumptions.
With $700 a month in other debts, your housing budget falls to about $1,700, which supports a home price of around $216,200.
How Much House Can I Afford on $100K a Year?
A $100,000 salary gives you a housing budget of about $2,333 a month under the 28% rule. That points to a home price of around $295,500.
At this income, $700 a month in other debts has a smaller effect: the 36% rule leaves about $2,300 for housing, and your maximum price is around $291,300.
How Interest Rates Change Your Budget
Your rate has a big effect on the price you can afford, even when your monthly budget stays the same. Here’s the $80,000 example with no other debts and $25,000 down:
| Interest rate | Max home price |
|---|---|
| 6% | About $256,100 |
| 7% | About $237,100 |
| 8% | About $220,300 |
A one-point change in your rate moves your budget by roughly $17,000 to $19,000 in this example. That’s why shopping for the best rate is worth the effort.
Costs to Plan for Beyond the Monthly Payment
Being able to afford the monthly payment isn’t the whole story. Before you set your budget, plan for:
- Closing costs: usually 2% to 5% of the loan amount, paid when you buy.
- An emergency fund: many financial planners suggest keeping several months of expenses saved after closing.
- Maintenance and repairs: a common rule of thumb is to set aside about 1% of the home’s value each year.
- Moving and furnishing: these costs add up quickly in the first few months.
5 Ways to Afford More House
- Pay down existing debts. Lowering your monthly debt payments can raise your housing budget, especially if the 36% rule is limiting you.
- Improve your credit score. A better score usually means a lower rate, and a lower rate means more home for the same monthly payment.
- Save a larger down payment. It reduces the amount you borrow, and reaching 20% removes PMI on a conventional loan.
- Look at lower-tax areas. Property tax rates vary a lot, even between nearby towns.
- Compare loan programs. FHA, VA, and USDA loans have different requirements that may fit your situation better.
A Note From José María
I’m José María, and I built this calculator for Finanzasclave because the question “how much house can I afford” deserves a clear answer based on your own numbers, not a generic rule. My advice is to treat the result as a maximum, not a target. Leaving some room in your monthly budget makes it much easier to handle repairs, rate changes in your insurance or taxes, and the unexpected costs that come with owning a home.
Final Thoughts
Your salary is only the starting point. Your debts, down payment, interest rate, and local taxes decide how much home you can comfortably buy. Use the calculator with your own figures, compare a few scenarios, and then talk to a lender for a pre-approval based on your full financial situation.
Frequently Asked Questions
Is the 28/36 rule a strict requirement?
No. It’s a guideline many lenders use, but approval limits vary by lender and loan program. Some programs, such as FHA loans, often allow higher ratios.
How much house can I afford if I make $100,000 a year?
With no other debts, a $25,000 down payment, and a 7% rate, about $295,000 based on the 28% rule. Your exact number depends on your debts, rate, taxes, and down payment.
Is my pre-approval amount what I can afford?
Not necessarily. A pre-approval shows the most a lender is willing to lend you. It doesn’t account for your other goals, savings, or lifestyle, so many buyers choose to spend less than their approved amount.
Can I buy a house on a $60,000 salary?
Yes, in many areas. With a solid down payment and few other debts, a $60,000 income can support a home price of around $140,000 to $180,000 at today’s rates, depending on your debts and location.
Does the calculator include closing costs?
No. It estimates the home price and monthly payment you can afford. Closing costs are a separate one-time expense you pay when you buy.
This article and calculator are for informational purposes only and are not financial advice. Results are estimates based on the assumptions you enter. Contact a licensed lender for an accurate pre-approval.