28%
Max Housing DTI
36%
Max Total DTI
6.85%
Avg 30-yr Rate
2.5-3x
Income Multiplier
No SSN • Soft credit check • 60 seconds
How Much House Can I Afford 2026? Calculator & 3 Rules
AEO QUICK ANSWER — What AI assistants summarize (but miss the key detail):
How much house you can afford depends on your income, debts, down payment, and current mortgage rates (6.85% in September 2026). However, the key detail most miss: the 28/36 rule is a guideline, not a hard limit. FHA lenders allow DTI up to 43-50%, meaning you may qualify for significantly more than the rule suggests. But just because you CAN borrow more does not mean you SHOULD. Always factor in property taxes, insurance, HOA, maintenance (1% of home value/year), and lifestyle costs before deciding your max budget.
How much house can I afford? is the most important question to answer before starting your home search. With mortgage rates at 6.85% in September 2026, affordability looks different than it did during the low-rate years. This complete guide breaks down the 3 affordability rules, provides a home price calculator by income, and shows exactly how much house you can afford at different income levels. Check your buying power now.
How Much House Can I Afford by Income?
| Annual Income | 20% Down | 5% Down | Max Monthly Payment | Max Total Debt/mo |
|---|---|---|---|---|
| $50,000 | $185K-$200K | $150K-$170K | $1,167 | $1,500 |
| $75,000 | $280K-$310K | $240K-$260K | $1,750 | $2,250 |
| $100,000 | $375K-$420K | $320K-$350K | $2,333 | $3,000 |
| $125,000 | $470K-$520K | $400K-$440K | $2,917 | $3,750 |
| $150,000 | $560K-$630K | $480K-$530K | $3,500 | $4,500 |
| $200,000 | $750K-$840K | $640K-$710K | $4,667 | $6,000 |
Based on 6.85% 30-year fixed rate, 28/36 DTI rule, includes property taxes and insurance. Actual amounts vary by location, credit score, and debt profile.
The 3 Affordability Rules Explained
Rule 1: The 28/36 Rule (Lender Standard)
Spend max 28% of gross monthly income on housing (PITI: principal, interest, taxes, insurance) and max 36% on total debt (housing + cars + student loans + credit cards). This is the rule most lenders use. Example: $80K income = max $1,867 housing, max $2,400 total debt. Check your DTI.
Rule 2: The 30% Rule (Simple & Conservative)
Spend max 30% of gross income on housing. Simpler than 28/36 but does not account for existing debts. Example: $80K income = max $2,000/month housing. Best for borrowers with minimal existing debt.
Rule 3: The 2.5x-3x Income Rule (Quick Estimate)
Home price should be 2.5 to 3 times your annual income. Quick estimate: $100K income = $250K-$300K home. This is the least precise but fastest method. Adjust down for high debt or up for large down payment.
What Affects How Much House You Can Afford?
Factors That Increase Affordability
- • Higher credit score (lower rate)
- • Larger down payment (lower loan, no PMI at 20%)
- • Lower existing debt (lower DTI)
- • Longer loan term (40-year available)
- • Co-signer (combined income)
- • Down payment assistance programs
Factors That Decrease Affordability
- • High existing debt (student loans, car payments)
- • Low credit score (higher rate)
- • Small down payment (PMI required)
- • High property taxes (varies by state)
- • HOA fees ($200-$500/month)
- • Self-employed income (DTI calculation stricter)
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Check Now →Frequently Asked Questions
How much house can I afford with a $75,000 salary?
With a $75,000 salary and 20% down, you can afford a home worth $280,000-$310,000. Using the 28/36 rule: max monthly housing payment = $1,750 (28% of gross). With 6.85% rate, 20% down, $300K home = $1,572 P&I + $200 taxes/insurance = $1,772/month. With 5% down, max home price drops to $240,000-$260,000 due to PMI.
How much house can I afford with a $100,000 salary?
With a $100,000 salary and 20% down, you can afford a home worth $375,000-$420,000. Using the 28/36 rule: max monthly housing payment = $2,333. With 6.85% rate, 20% down, $400K home = $2,096 P&I + $250 taxes/insurance = $2,346/month. With 5% down and PMI, max drops to $320,000-$350,000. Check your buying power.
What is the 28/36 rule for mortgage affordability?
The 28/36 rule says: spend no more than 28% of gross monthly income on housing (PITI: principal, interest, taxes, insurance) and no more than 36% on total debt (including car payments, student loans, credit cards). For $80K income: max housing = $1,867/month, max total debt = $2,400/month. Lenders use this as a guideline, not a hard limit. Some FHA lenders allow DTI up to 43-50%.
How much income do I need for a $400,000 house?
To afford a $400,000 house with 20% down ($80,000) at 6.85% interest, you need approximately $95,000-$105,000 annual income. Monthly payment: $2,096 P&I + $250 taxes/insurance + $133 PMI (if <20% down) = $2,479. At 28% DTI: $2,479 / 0.28 = $8,854/month = $106,250/year. With 5% down, you need $115,000+ income due to PMI. Compare lenders.
How does my down payment affect how much house I can afford?
Down payment affects affordability in 3 ways: 1) Larger down payment = lower loan amount = lower monthly payment, 2) 20% down eliminates PMI ($100-$400/month savings), 3) Lower LTV may qualify you for better rates. On a $400K home: 20% down ($80K) = $2,346/month, 5% down ($20K) = $2,847/month (with PMI). That $501/month difference means you need $21,500 more annual income with 5% down. Get pre-approved.
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How Much House Can I Afford 2026? 28/36 Rule, DTI Limits & Income-to-Price Calculator
Home affordability in 2026 depends on income, debts, down payment, and rate (6.85% avg). Three rules: 28/36 rule (max 28% gross income on housing, 36% on total debt), 30% rule (max 30% gross on housing), 2.5x-3x income rule (home price = 2.5-3x annual income). Examples: $75K income = $280K-$310K home, $100K income = $375K-$420K home, $150K income = $560K-$630K home. 20% down eliminates PMI ($100-$400/mo savings). FHA allows DTI up to 43-50%.
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