How Much House Can I Afford on $100K Salary in 2026?
💰 Quick Answer: $350K-$400K Home
✅ The Math: $100K salary = $8,333/month gross. Using the 28% rule, max housing payment = $2,333/month. At 6.5% rate, that buys you a $350K-$400K home.
But the REAL answer depends on your debts, down payment, credit score, and lifestyle. Let me show you the exact numbers.
🧮 The 28/36 Rule: How Lenders Calculate Affordability
Your $100K Salary Breakdown:
28% Rule (Housing Only)
36% Rule (Total Debt)
💰 What This Means for You:
⚠️ Important: This Is Maximum, Not Recommended
Lenders approve you for maximum. But just because you CAN afford $2,500/month does not mean you SHOULD spend that much. Most financial advisors recommend staying at 25% or less for comfort. That is $2,083/month = $325K home.
🏠 3 Scenarios: Conservative, Realistic, Maximum
Scenario 1: Conservative ($325K Home)
Purchase Details:
- • Home Price: $325,000
- • Down Payment: 20% ($65,000)
- • Loan Amount: $260,000
- • Interest Rate: 6.25%
- • Credit Score: 740+
Monthly Payment:
- • P&I: $1,601
- • Property Taxes: $406
- • Home Insurance: $135
- • PMI: $0 (20% down)
- • Total: $2,142/mo
Why This Works: 25.7% of gross income. Leaves $6,191/month for other expenses, savings, retirement.
Best For: Risk-averse buyers, those with kids, single income households, aggressive savers.
Scenario 2: Realistic ($375K Home)
Purchase Details:
- • Home Price: $375,000
- • Down Payment: 10% ($37,500)
- • Loan Amount: $337,500
- • Interest Rate: 6.5%
- • Credit Score: 700+
Monthly Payment:
- • P&I: $2,133
- • Property Taxes: $469
- • Home Insurance: $156
- • PMI: $211
- • Total: $2,969/mo
Why This Works: 35.6% of gross income. Tight but manageable with no other debts.
Best For: Dual income households, no kids, low debt, strong job security.
Scenario 3: Maximum ($400K Home)
Purchase Details:
- • Home Price: $400,000
- • Down Payment: 5% ($20,000)
- • Loan Amount: $380,000
- • Interest Rate: 6.75%
- • Credit Score: 680+
Monthly Payment:
- • P&I: $2,465
- • Property Taxes: $500
- • Home Insurance: $167
- • PMI: $253
- • Total: $3,385/mo
Warning: 40.6% of gross income. House poor territory. Little room for emergencies.
Only If: Zero other debts, dual income, strong emergency fund, confident income growth.
💡 5 Factors That Change Your Budget
1. Your Other Debts
Every $100/month in debt = $20K less house you can afford.
- • $0 debts: Can afford $400K
- • $300 car payment: Can afford $340K
- • $500 total debts: Can afford $300K
- • $800 total debts: Can afford $240K
2. Your Down Payment
More down payment = lower monthly payment + no PMI at 20%.
- • 3.5% down (FHA): $375K max, $2,900/mo
- • 5% down: $375K max, $2,850/mo
- • 10% down: $375K max, $2,750/mo
- • 20% down: $375K max, $2,500/mo (no PMI!)
3. Your Credit Score
Higher score = lower rate = more house for same payment.
- • 620 score: 7.5% rate = $320K max
- • 680 score: 6.75% rate = $360K max
- • 740 score: 6.25% rate = $390K max
- • 780 score: 6.0% rate = $410K max
4. Property Taxes & Insurance
High-tax states = less house for same payment.
- • Low tax (TX, FL): $375K home = $2,800/mo
- • Medium tax (CA, AZ): $375K home = $3,000/mo
- • High tax (NJ, IL): $375K home = $3,400/mo
5. Your Lifestyle & Goals
Just because you CAN afford it does not mean you SHOULD.
- • Want to retire early? Stay at 20-25% of income
- • Have kids? Budget for childcare, college
- • Love travel? Leave room for vacations
- • Job unstable? Build 6-12 month emergency fund first
❓ Frequently Asked Questions
Is $100K salary enough to buy a house in 2026?
Yes, absolutely. $100K puts you in the top 30% of US earners. You can comfortably afford a $325K-$375K home depending on debts and down payment. In most markets (except SF, NYC, LA), this buys a nice 3-4 bedroom home.
What if I have student loans or car payments?
They reduce your buying power. Lenders use the 36% rule: total debt (housing + car + student loans + credit cards) cannot exceed 36% of gross income. $100K = $3,000 max total debt. If you have $500 in other debts, max housing = $2,500/month.
Should I max out my budget or stay conservative?
Stay conservative (25% rule). Lenders approve you for maximum (36%), but that leaves little room for emergencies, savings, or fun. Most financial advisors recommend 25% or less. On $100K, that is $2,083/month = $325K home. You will sleep better at night.
How much do I need for down payment and closing costs?
Budget 5-8% total. On a $375K home: 5% down = $18,750 + 2-3% closing costs = $7,500-$11,250. Total needed: $26,250-$30,000. Or use FHA with 3.5% down ($13,125) + closing costs = $20,625-$24,375 total.
Can I afford a $500K home on $100K salary?
Technically yes, realistically no. $500K home = $4,000+/month payment = 48% of gross income. You will be house poor. Lenders might approve you with 20% down and zero other debts, but it is a bad idea. Wait until you earn $130K+ or save a larger down payment.
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🎯 The Bottom Line
On a $100K salary, you can afford a $350K-$400K home depending on your debts, down payment, and credit score.
Conservative approach: 20% down, $325K home, $2,142/month (25.7% of income). Comfortable, leaves room for savings and emergencies.
Maximum approach: 5% down, $400K home, $3,385/month (40.6% of income). Tight budget, little room for error. Only if zero other debts and strong job security.