How Much House Can I Afford?

The lender's maximum and your comfortable maximum are two different houses. Here is how both are calculated — with salary examples you can map to your own life.

The 28/36 rule, in plain English

Lenders start with two caps on gross (pre-tax) monthly income: total housing costs (PITI + PMI + HOA) at 28%, and housing plus all other debts at 36%. Your personal cap is the smaller result. Programs vary — conventional underwriting often allows total DTI to 45–50% with strong files, FHA and VA have their own flexibilities — but 28/36 is the planning standard that keeps ownership comfortable.

Salary examples (6.5% rate, 30 years, 10% down, average taxes)

$60,000 salary → housing budget ~$1,400/mo → home around $190,000–$205,000.
$80,000 → ~$1,867/mo → around $255,000–$275,000.
$100,000 → ~$2,333/mo → around $320,000–$345,000.
$150,000 → ~$3,500/mo → around $480,000–$520,000.
$200,000 → ~$4,667/mo → around $640,000–$690,000.

These ranges assume modest other debts. Heavy car or student payments shrink them fast — every $100/month of debt costs roughly $15,000–$20,000 of house. Get your exact figure in the affordability calculator.

The costs first-time budgets forget

Property taxes at your state's rate, not the national average (see the PITI calculator).
Insurance — climbing fast in coastal and wildfire states.
Maintenance and repairs (~1% of value per year) and higher utilities for a bigger space.
Commuting, childcare changes, and furnishing a larger home.

Comfort math vs approval math

A household spending 28% of gross on housing keeps room for retirement savings (target 15%), an emergency fund, and actually living in the home they bought. At 40%+ of net income going to the house, families often become 'house poor' — asset-rich, cash-strangled. If your approval says $450,000 but your life says $375,000, believe your life. Then make the target real: price listings with the payment calculator, plan the cash with the down payment calculator, and take the pre-approval step when you are ready.

Frequently asked questions

How much house can I afford making $75,000 a year?

Roughly $240,000–$260,000 with 10% down at around 6.5%, assuming light debts and average property taxes. In a high-tax state or with a $500 car payment, expect $200,000–$220,000.

Is the 28% rule based on gross or net income?

Gross (pre-tax) income — lenders use gross for DTI. Many households prefer budgeting from net (take-home) pay, which makes their personal rule stricter and safer.

How much does a car payment reduce what I can afford?

A $450 car payment consumes DTI room equal to about $450 of housing payment — roughly $65,000–$70,000 of home price at current rates. Paying off the car before buying is one of the strongest affordability moves.

Should I include my partner's income?

If they will be on the loan and on title, yes — lenders count documented income of all borrowers. If they will not be a borrower, their income generally cannot be counted for qualification (though it obviously helps the household budget).