How much house can I afford?
Updated Updated for 2026 tax law
See the most house you can afford under the 28/36 rule lenders use, then check that payment against your actual take-home pay after federal, FICA and state taxes.
- Principal & interest$1,695
- Property tax$360
- Home insurance$167
- PMI$112
- Take-home pay per month
- $6,598After 2026 federal, FICA and Texas taxes
- Housing payment
- $2,33335.4% of take-home
- Other debt payments
- $400
- Left for everything else
- $3,865
This payment is 35% of your take-home pay. Lenders approve on gross income, but many planners suggest keeping housing nearer 25–30% of take-home to leave room for savings, repairs and maintenance (often 1%–2% of the home's value a year).
Lenders use gross (pre-tax) income for the 28/36 rule; take-home is computed with no pre-tax deductions. Doesn't include closing costs (often 2%–5% of the price) or an emergency fund.
How to use the affordability calculator
- Enter your household's gross annual income, your state and filing status (for the take-home figure).
- Enter monthly payments on other debts — car, student loans, card minimums.
- Enter the cash you'll put down and a mortgage rate quote.
- Adjust property tax, insurance and HOA under "Taxes, insurance & HOA". PMI is added automatically when you'd borrow more than 80%.
- Read the maximum price, the ratios, and what's left of your take-home pay each month.
How the 28/36 rule works
Housing payment = P&I + property tax + insurance + PMI + HOA
Max price = the highest price whose housing payment fits
Example: $100,000 income ($8,333/month), $500 of other debts and $40,000 down. The 28% limit is $2,333; the 36% limit is $3,000 − $500 = $2,500. The 28% rule binds, so the most you can spend on housing is $2,333 a month — enough for a home of about $321,700. A single filer in Texas takes home about $6,598 a month, so that payment is 35% of take-home pay.
House you can afford by income
| Income | Max home price | Housing / month | Take-home / month | Share of take-home |
|---|---|---|---|---|
| $50,000 | $175,100 | $1,167 | $3,530 | 33% |
| $75,000 | $244,700 | $1,750 | $5,133 | 34% |
| $100,000 | $321,700 | $2,333 | $6,598 | 35% |
| $125,000 | $398,800 | $2,916 | $8,059 | 36% |
| $150,000 | $475,800 | $3,499 | $9,483 | 37% |
| $200,000 | $629,900 | $4,666 | $12,411 | 38% |
| $250,000 | $784,000 | $5,833 | $15,265 | 38% |
How rates change your budget
| Mortgage rate | Max home price | Loan |
|---|---|---|
| 5.5% | $347,900 | $307,900 |
| 6% | $334,400 | $294,400 |
| 6.5% | $321,700 | $281,700 |
| 7% | $309,900 | $269,900 |
| 7.5% | $298,800 | $258,800 |
Beyond the 28/36 rule
- Cash to close. Besides the down payment, budget 2%–5% of the price for closing costs, plus moving costs and a cash reserve.
- Maintenance. A common rule of thumb is 1%–2% of the home's value per year for repairs and upkeep.
- Lender limits can be higher. Conventional loans run through automated underwriting may allow total debt-to-income up to about 45%–50%, and FHA often allows more than 43%. Qualifying for a bigger loan doesn't mean it fits your budget.
Disclaimer: Estimates for information only — not financial, lending or legal advice. Your lender's Loan Estimate and disclosures are the binding numbers. Take-home pay assumes no 401(k) or health deductions; use the paycheck calculator for an exact figure.
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Frequently asked questions
What is the 28/36 rule?
A lending guideline: spend no more than 28% of your gross monthly income on housing (mortgage principal and interest, property tax, insurance, PMI and HOA), and no more than 36% on all debt payments combined, including the mortgage. Many loan programs allow higher ratios, but 28/36 is the classic conservative benchmark.
How much house can I afford on $100,000 a year?
About $321,700 with $40,000 down, no other debts, a 6.5% 30-year rate, 1% property tax and $2,000 a year of insurance. That's a housing payment of $2,333 a month — 28% of gross pay, but 35% of a single Texas filer's take-home pay.
Do lenders use gross or net income?
Gross — your income before taxes and deductions. That's why this calculator also shows the payment as a share of your take-home pay: a payment that fits the 28% rule can still be a third or more of what actually lands in your bank account.
What counts as monthly debt?
Minimum payments that show on your credit report or that you're legally obligated to pay: car loans, student loans, credit card minimums, personal loans, child support and alimony. Rent you'll stop paying, utilities, phone bills and insurance generally don't count.
How does the interest rate change what I can afford?
A lot. With $100,000 of income and $40,000 down, the 28% rule allows about $347,900 at 5.5% but only $298,800 at 7.5% — the same monthly payment buys less house as rates rise.
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Estimates for information only — not tax, legal or financial advice.