The short answer
With today's mortgage rates, a common lender guideline (the 28/36 rule), and 10% down, a household earning $100,000 can afford a home of about $287,000. With 20% down, that rises to about $338,000. The table below covers salaries from $50,000 to $200,000.
Home price by salary
| Household income | Max housing payment | Home price — 10% down | Home price — 20% down |
|---|---|---|---|
| $50,000 | $1,100/mo | $125,000 | $147,000 |
| $60,000 | $1,400/mo | $165,000 | $194,000 |
| $75,000 | $1,750/mo | $211,000 | $248,000 |
| $100,000 | $2,333/mo | $287,000 | $338,000 |
| $125,000 | $2,917/mo | $364,000 | $429,000 |
| $150,000 | $3,500/mo | $441,000 | $519,000 |
| $200,000 | $4,667/mo | $594,000 | $700,000 |
"Max housing payment" is the full monthly cost — principal, interest, property tax, insurance, and PMI — that fits inside both limits of the 28/36 rule. Home prices are rounded to the nearest $1,000.
The assumptions
- Mortgage rate: 7.4%, 30-year fixed — Freddie Mac's Primary Mortgage Market Survey average for the week of October 15, 2026.
- The 28/36 rule: housing costs no more than 28% of gross monthly income, and housing plus other debts no more than 36%.
- Other debts: $400 a month (a car payment or student loan, for example).
- Property tax: 1.1% of the home's value per year; homeowners insurance: $1,800 per year; no HOA dues.
- PMI: 0.6% of the loan amount per year when the down payment is under 20%.
At $50,000 of income, the $400 of other debt is what limits the budget: 36% of $4,167 is $1,500, minus $400 leaves $1,100 — less than the 28% housing limit of $1,167. At $60,000 the two limits are exactly equal. From $75,000 up, the 28% housing limit is the binding one.
What moves the number the most
Interest rate. Every percentage point of interest changes the price you can afford by roughly 8%. If rates fell to 6.4%, the $100,000 household's budget would rise from about $287,000 to about $312,000; at 8.4% it would drop to about $266,000.
Other debts. Each $100 of monthly debt payments matters once the 36% limit becomes the tighter one. Paying off a car loan before applying can raise your budget directly. Check where you stand with the debt-to-income calculator.
Property taxes and insurance. They come out of the same monthly budget as your loan. In a high-tax county or an area with expensive insurance, the same income buys noticeably less house.
Down payment. A bigger down payment means a smaller loan for the same price, and 20% down removes PMI on a conventional loan — which is why the 20% column is about 18% higher.
What lenders allow vs. what's comfortable
28/36 is a conservative guideline; many loan programs approve higher ratios, so a lender may pre-approve you for more than this table shows. That doesn't mean you should borrow it. Your housing payment competes with childcare, commuting, retirement saving, and an emergency fund — none of which a debt-to-income ratio measures.
Enter your own income, debts, down payment, and local tax rate in the home affordability calculator, then check the full payment on a specific house with the mortgage calculator.
Figures were calculated with the same formulas as our affordability calculator. They are estimates for planning, not a loan approval.