A realistic estimate based on the lender's 28/36 rule: your housing costs should stay under 28% of gross income, and all your debt payments under 36%. Enter your numbers to see the home price that fits.
Roughly the gross salary needed for each home price, with 10% down at 6.5% and modest other debts.
| Home price | Income needed | Monthly payment |
|---|---|---|
| $250,000 | $81,000 | $1,896 |
| $350,000 | $114,000 | $2,655 |
| $450,000 | $146,000 | $3,413 |
| $600,000 | $195,000 | $4,551 |
| $800,000 | $260,000 | $6,068 |
A long-standing lender guideline: keep your monthly housing cost at or below 28% of your gross (pre-tax) monthly income, and your total monthly debt payments, housing plus car, student and card minimums, at or below 36%. Staying under both is a good sign a mortgage is affordable.
Yes, a lot. It reduces the loan you need, so the same monthly budget stretches to a higher home price, and a down payment of 20% or more usually avoids mortgage insurance (PMI), lowering the monthly cost further.
Usually not. This shows what a lender may allow, not what is comfortable. Leaving room for savings, emergencies and life means many people are happier buying below their maximum. Our rent vs buy tool can sanity-check whether buying is even the better move for you.