How Much House Can I Afford 2026? Calculator Based on Income & DTI
How much house can you afford in 2026? Use the 28/36 rule: spend max 28% of gross income on housing and 36% on total debts. Example: $80,000 income = $1,867/month max housing payment = $300,000-$350,000 home (with 20% down). This complete guide includes affordability calculator, income requirements by home price, DTI limits, and pre-approval strategies. The only way to know your EXACT affordability is to get pre-approved (lenders verify income, debts, credit). Compare with down payment assistance and low down payment options. Get pre-approved now.
🏠 Quick Affordability Guide (2026)
| Annual Income | Max Monthly Payment | Home Price (20% Down) |
|---|---|---|
| $50,000 | $1,167/month | $180K-$210K |
| $80,000 | $1,867/month | $300K-$350K |
| $100,000 | $2,333/month | $375K-$440K |
| $150,000 | $3,500/month | $560K-$660K |
💡 28/36 Rule Explained
28% Rule: Max 28% of gross monthly income on housing (mortgage + taxes + insurance)
36% Rule: Max 36% of gross monthly income on total debts (housing + car + student loans + credit cards)
Example: $80K income = $6,667/month gross → 28% = $1,867 max housing, 36% = $2,400 max total debts
Affordability Calculator: Step-by-Step
Calculate Your Max Home Price
Step 1: Calculate Max Monthly Housing Payment
Formula: Gross Monthly Income × 28%
Step 2: Subtract Property Tax & Insurance
Step 3: Calculate Max Loan Amount
At 6.25% rate, 30-year fixed:
Step 4: Add Down Payment = Max Home Price
💰 Result:
$80K income = $287,500 max home price (with 20% down). With 3% down, max home price = $237,000.
🎯 Get Pre-Approved to Know Your EXACT Affordability!
Calculators are estimates. Pre-approval shows your real buying power!
Get Pre-Approved Now →Free pre-approval • Know exact amount • Shop with confidence
Income Requirements by Home Price (2026)
| Home Price | Down Payment (20%) | Loan Amount | Monthly Payment | Income Needed |
|---|---|---|---|---|
| $200,000 | $40,000 | $160,000 | $1,283/month | $55,000 |
| $300,000 | $60,000 | $240,000 | $1,925/month | $82,500 |
| $400,000 | $80,000 | $320,000 | $2,567/month | $110,000 |
| $500,000 | $100,000 | $400,000 | $3,208/month | $137,500 |
| $750,000 | $150,000 | $600,000 | $4,813/month | $206,000 |
💡 Assumptions:
- • 6.25% interest rate (30-year fixed)
- • 20% down payment (no PMI)
- • 1.2% property tax + $150/month insurance
- • 28% housing-to-income ratio
Debt-to-Income (DTI) Limits
What is DTI?
DTI = (Total Monthly Debts ÷ Gross Monthly Income) × 100
Example Calculation:
✅ DTI Limits by Loan Type:
- • Conventional: 43% max (50% with compensating factors)
- • FHA: 43% max (57% with strong credit)
- • VA: 41% preferred (no hard limit)
- • USDA: 41% max
- • Jumbo: 43% max (36% preferred)
Frequently Asked Questions
How much house can I afford with $100K salary?
$375,000-$440,000 home (with 20% down). Calculation: $100K income = $8,333/month gross → 28% = $2,333 max housing payment → after taxes/insurance = $1,800 P&I → $290K loan + $75K down (20%) = $365K home. With 3% down: Max $300K home. Key factors: Your debts (car, student loans) reduce affordability. If you have $500/month debts, max home drops to $350K. Get pre-approved for exact amount.
Can I afford a house making $60K a year?
Yes—$225,000-$265,000 home (with 20% down). Calculation: $60K = $5,000/month gross → 28% = $1,400 max housing → $1,050 P&I after taxes/insurance → $170K loan + $42K down = $212K home. With 3% down: Max $175K home. Reality check: $60K is tight in high-cost areas (CA, NY). Consider down payment assistance or 3% down programs to reduce upfront costs.
What if my DTI is too high?
5 ways to lower DTI: (1) Pay off debts: Eliminate car loan or credit cards before applying (reduces monthly debts). (2) Increase income: Get raise, second job, or include spouse's income. (3) Lower home price: Target cheaper home = lower mortgage payment. (4) Larger down payment: 30% down vs 20% = lower loan = lower payment. (5) Wait & improve: Pay down debts for 6-12 months, then reapply. Example: DTI 45% (too high) → pay off $400 car loan → DTI drops to 39% (approved!).
Should I max out my affordability?
No—aim for 20-25% of income, not 28% max. Why: (1) Unexpected costs: Repairs, maintenance, HOA fees add $200-500/month. (2) Financial flexibility: Need buffer for emergencies, savings, retirement. (3) Lifestyle: Want money for vacations, hobbies, kids. Example: $80K income = $287K max home (28% rule), but $225K comfortable home (22% rule) = $350/month extra for life. Rule of thumb: If max feels tight, it IS tight. Buy less house, live better life.
🚀 Get Pre-Approved & Know Your Exact Buying Power!
Stop guessing. Get pre-approved and know exactly how much you can afford!
Get Pre-Approved Now →Free pre-approval • Know exact amount • Shop with confidence