How Much House Can I Afford in 2026?
The honest answer uses three numbers: income, debt, and down payment.
The 28/36 rule, demystified
Lenders want your housing payment under 28% of gross income and total debt under 36%. That payment includes principal, interest, property tax, and insurance (PITI) — not just the mortgage itself.
Salary → affordable home (20% down, 6.5% rate, no other debt):
- $60k salary → about $220k home
- $100k salary → about $370k home
- $150k salary → about $555k home
- $200k salary → about $740k home
Why the down payment changes everything
20% down avoids PMI and lowers your payment. 10% or less means private mortgage insurance — roughly 0.5-1% of the loan per year — added to every payment. A $20k down payment buys a very different home than $80k.
Debt is the silent disqualifier
Car loans, student loans, and credit card minimums all count against the 36% back-end ratio. Two buyers with the same salary qualify for different amounts based purely on existing debt.
Run your real numbers
Your Results
Assumes 1% property tax + 0.5% insurance. FHA/VA may allow higher ratios.
Frequently Asked Questions
What is the 28/36 rule?
Lenders typically cap housing costs at 28% of gross income and total debt at 36%. FHA allows up to 31/43 in many cases.
How much house can I afford on $100k salary?
On $100k/year with no other debt and 20% down at a 6.5% rate, the 28% rule puts your max monthly payment around $2,333 — roughly a $370k home. At $150k, that scales to about $555k; at $200k, about $740k. Run your real numbers above — debt, down payment, and rate move the answer a lot.
How much house can I afford with a $20k down payment?
A $20k down payment is 10% on a $200k home or about 6% on a $320k home. Smaller down payments mean PMI and higher monthly costs — run the numbers in this calculator and the PMI calculator together to see the true payment.
Should I use the max price?
Just because you qualify doesn't mean you should buy at the max. Leave room for maintenance, repairs, and lifestyle costs.
Related Calculators
Related tools
- Mortgage Calculator — your actual monthly payment
- DTI Ratio Calculator — do you pass the 36% test?
- PMI Calculator — what under-20% down costs
- Mortgage Basics Guide