How Much House Can I Afford? (2026)
The quick answer: aim for a home priced around 3–4× your salary. On a $100,000 income in 2026, that's roughly a $395,000 house — assuming 20% down, a mortgage rate near 7%, and little other debt. The real limit is the 28/36 rule lenders use. Here's the salary-to-home-price table, what moves your number, and why you probably shouldn't borrow the max. More in our Personal Finance Statistics Hub →
How Much House You Can Afford by Salary
Estimated maximum home price at 20% down, a ~7% 30-year rate, and no other major debt — keeping the total payment at 28% of gross income.
| Salary | Max Monthly Housing (28%) | Home Price (approx.) |
|---|---|---|
| $50,000 | $1,167 | ~$165,000 |
| $75,000 | $1,750 | ~$295,000 |
| $100,000 | $2,333 | ~$395,000 |
| $125,000 | $2,917 | ~$495,000 |
| $150,000 | $3,500 | ~$595,000 |
| $200,000 | $4,667 | ~$790,000 |
Illustrative estimates for 2026: 20% down payment, ~7% 30-year fixed rate, property taxes and insurance included in the 28% housing budget, and no other monthly debt. Your actual budget changes with rate, down payment, debts, and local taxes.
Home Price by Salary — Visual
The 28/36 Rule Explained
Lenders judge affordability with two ratios:
- 28% front-end: your total monthly housing payment — principal, interest, property taxes, and insurance (PITI) — should stay under 28% of gross monthly income.
- 36% back-end: all your monthly debt payments combined — housing plus car loans, student loans, and credit card minimums — should stay under 36% of gross income.
The back-end ratio is why existing debt shrinks your home budget: every $100 of car or student loan payment is $100 less you can put toward a mortgage.
📌 Key Insight
The 28/36 rule runs on gross income, but you live on take-home. On a $100,000 salary you might only net around $75,000 after taxes, so a "28%" housing payment can eat 35%+ of what actually hits your bank account. That's why the max you're approved for often feels unaffordable in practice. Aim for a payment closer to 25% of gross — or about 30–35% of take-home — to leave room for repairs, emergencies, and a life.
What Changes Your Number
- Interest rate: even a 1-point rate change swings your buying power by roughly 10%.
- Down payment: more down means a smaller loan and no PMI once you hit 20% equity.
- Other debt: car and student loans cut into the 36% back-end limit.
- Property taxes & insurance: these vary a lot by state and are part of the 28% — see average mortgage payment.
- Credit score: a higher score earns a lower rate, which raises how much house you can afford.
Get Your Numbers Right First
Before you shop, know your real budget, kill high-interest debt, and build your down payment. These tools help.
Debt Payoff Calculator → Best Budgeting AppsFrequently Asked Questions
Around $395,000, assuming 20% down, a ~7% rate, and little other debt, keeping the payment under 28% of gross income. Existing debt or a smaller down payment lowers it.
Keep housing (PITI) under 28% of gross monthly income and all debt payments under 36%. Both ratios must pass; existing debt eats into the 36% limit.
Roughly $295,000 on $75K and $595,000 on $150K under the same assumptions. Each $25K of salary adds about $100K of buying power — before adjusting for rate, down payment, and debt.
About $100,000/year with 20% down (~$80K), a ~7% rate, and little other debt. Less down or existing debts raise the income needed.
Usually not. The 28/36 rule is a ceiling, and lenders use gross income while you live on take-home. Aim for ~25% of gross (or 30–35% of take-home) to stay comfortable.