How Much House Can I Afford with My Salary (2025–2026 Guide)
Updated: October 2025 • 8 min read
How much house can I afford with my salary — This 2025–2026 home affordability guide helps you calculate exactly how much home fits your budget. We’ll show you income-to-loan ratios, debt limits, and how to use our Mortgage Calculator to find your perfect price range.
What does “house affordability” mean?
Affordability is based on your debt-to-income (DTI) ratio, which measures how much of your monthly income goes toward debt payments. Lenders typically recommend:
- Front-end ratio: Housing costs ≤ 28 % of gross income.
- Back-end ratio: Total debts ≤ 36 % of gross income.
How to calculate how much house you can afford
- Find your gross monthly income (before taxes).
- Multiply by 0.28 to get your target monthly housing budget.
- Use our Mortgage Calculator to estimate monthly payments, taxes, and PMI.
Example affordability by income
| Annual Salary | Max Home Price | Monthly Payment |
|---|---|---|
| $60,000 | $220,000 – $250,000 | $1,400 – $1,600 |
| $80,000 | $300,000 – $340,000 | $1,900 – $2,100 |
| $100,000 | $375,000 – $420,000 | $2,400 – $2,700 |
| $120,000 | $460,000 – $500,000 | $2,900 – $3,200 |
Factors that impact how much house you can afford
- Interest rate: Even a 0.5 % change can shift affordability by $20,000 + .
- Down payment: A 20 % down payment reduces PMI and monthly cost.
- Property taxes: Vary widely by state — see our Best States to Buy a Home 2025.
- Loan term: Compare 15-, 20-, and 30-year loans for total cost.
How lenders decide your affordability
Mortgage lenders analyze your credit score, debt load, and employment stability. A higher credit score can unlock lower rates and higher loan limits, saving thousands in interest.
FAQ — How much house can I afford?
How much house can I afford on $70k a year?
With $70 000 annual income and low debts, you may afford around $260 000 – $300 000 depending on taxes and rates.
What salary do I need for a $500k house?
Roughly $120 000 annual income (before taxes), assuming 20 % down and 6 % interest rate.
Can I buy a house with a $60k salary?
Yes, if you keep other debts low and choose affordable areas with property taxes < 1 %.
Additional resources
– Mortgage Calculator
– Mortgage Interest Rate Predictions 2026
– CFPB Home Buying Guide