Home Affordability Calculator
Find out how much house you can afford based on your income, debts, down payment, and current 2026 mortgage rates.
Your total gross annual household income
Car loans, student loans, credit cards, etc.
Cash you have saved for a down payment
National average is 1.2%
How Much House Can I Afford?
Buying a home is one of the biggest financial decisions you'll make. Our affordability calculator helps you determine a realistic budget based on your actual financial situation — not just what a lender will approve you for.
Understanding the 28/36 Rule
The 28/36 rule is the gold standard for determining home affordability:
- 28% rule: Your monthly housing payment (mortgage + taxes + insurance) should not exceed 28% of your gross monthly income
- 36% rule: Your total monthly debt payments (housing + car loans + student loans + credit cards) should not exceed 36% of your gross monthly income
Your maximum housing payment is the lower of these two limits. If you have significant existing debt, the 36% rule will be your binding constraint.
Factors That Affect Home Affordability
- Credit score: A score of 740+ gets you the best rates. Below 620 may require FHA loans
- Down payment: 20% avoids PMI, but 3-5% is possible with some loan programs
- Debt-to-income ratio: Lower existing debt = more buying power
- Interest rates: Even 0.5% rate difference can change affordability by $20,000+
- Property taxes: Vary widely by location (0.3% in Hawaii vs 2.5% in New Jersey)
Tips to Afford More Home
- Improve your credit score — Pay down credit cards, fix errors on your credit report
- Reduce existing debt — Pay off car loans or student loans before applying
- Increase your down payment — More down = lower monthly payment = more buying power
- Consider first-time buyer programs — Many states offer down payment assistance and lower rates
- Look in lower-tax areas — Same house price, lower taxes = more affordable
Frequently Asked Questions
How much house can I afford with an $80,000 salary?
With an $80,000 salary and the 28/36 rule, you can afford a home priced around $280,000-$320,000 with a 20% down payment at a 6.5% interest rate. This assumes no significant existing debt. Use our calculator above with your specific details for a more accurate estimate.
What is the 28/36 rule?
The 28/36 rule suggests spending no more than 28% of gross monthly income on housing costs (mortgage, taxes, insurance) and no more than 36% on total debt (housing + car loans + student loans + credit cards). Lenders use these guidelines to determine how much they'll lend you.
How does my credit score affect home affordability?
A higher credit score gets you lower interest rates, which directly increases your buying power. A score of 740+ qualifies for the best rates. The difference between a 620 and 760 score could mean $20,000-$50,000+ in additional buying power over the life of the loan.
Should I use my entire pre-approval amount?
No. Lenders often pre-approve you for the maximum they think you can repay, which may stretch your budget too thin. Consider your full financial picture: retirement savings, emergency fund, childcare, and lifestyle before committing to a purchase price.
What costs besides the mortgage should I budget for?
Beyond the mortgage payment, budget for: property taxes (0.5-2.5% of home value/year), homeowners insurance ($1,000-$3,000/year), maintenance and repairs (1-2% of home value/year), HOA fees if applicable, utilities, and potential PMI if down payment is under 20%.
How much down payment do I need?
While some loan programs allow as little as 3% down (Conventional 97) or 3.5% (FHA), putting down 20% eliminates PMI and gets you the best rates. For a $400,000 home: 3% = $12,000, 5% = $20,000, 10% = $40,000, 20% = $80,000. First-time buyer programs may offer down payment assistance.