How Much House Can I Afford on a $100k Salary?

The quick answer

On a $100,000 salary, a comfortable home price is about $296,000 to $346,000, depending on your down payment. That assumes a 30-year fixed loan at 7.32%, the national average in Freddie Mac's mortgage rate survey for the week of October 22, 2026, with property tax and insurance included, and less than about $667 a month in other debt payments.

Lenders may approve you for more than that. Whether you should borrow the maximum is a different question, and we cover both below. To test your own numbers, use our mortgage calculator.

The 28/36 rule, worked through

The most widely used guideline has two parts. Both are measured against your gross monthly income, which is your pay before tax:

• 28% for housing. Your full housing payment, meaning principal, interest, property tax, insurance and any PMI or HOA dues, should stay at or below 28% of gross income. On $100,000 a year that's $8,333 × 0.28 = $2,333 a month.
• 36% for all debt. Housing plus every other monthly debt payment (car loans, student loans, minimum credit card payments) should stay at or below 36%. That's $3,000 a month in total.

The lower of the two limits is the one that applies. If your other debts are under $667 a month, the 28% housing limit is the tighter one. Above that, every extra dollar of debt comes straight out of your housing budget. The Consumer Financial Protection Bureau explains how lenders calculate your debt-to-income ratio.

What $2,333 a month buys

Here's the home price that a $2,333 monthly payment supports at today's average rate. Property tax is assumed at 1% of the home's value per year and insurance at 0.5%. PMI on loans with less than 20% down is estimated at 0.6% of the loan per year.

Notice that a bigger down payment raises the price you can afford, not just the cash you need. With less down, more of the same $2,333 goes to loan interest and PMI and less is left to cover the house itself.

With 20% down, the $2,333 breaks down into $1,901 of principal and interest, $288 of property tax and $144 of insurance. You can reproduce this, or swap in your own tax rate and insurance quote, in the mortgage calculator.

How other debts change the answer

Debt payments eat into the 36% limit. Here's the comfortable home price at different levels of existing debt:

A $500 car payment doesn't change the comfortable price at this income, because the 28% rule is the tighter limit. A $1,000 combination of car and student loans takes about $50,000 off the home you can afford with 20% down.

What a lender might actually approve

The 28/36 rule is a comfort guideline, not a lending limit. According to the Fannie Mae Selling Guide, the maximum total debt-to-income ratio is 36% for manually underwritten loans, up to 45% with strong credit and reserves, and up to 50% for loans approved through its automated underwriting system.

If you stretch to a 43% total ratio with $500 a month of other debts, the housing budget rises to $3,083 and the price to about $457,000 with 20% down, or $391,000 with 10% down. That's possible, but it leaves much less room for savings, repairs and surprises. Treat it as a ceiling, not a target.

How interest rates change your budget

The same $2,333 payment buys noticeably more house at lower rates. With 20% down:

A year ago the 30-year average was 6.19%, which would have supported a home about $34,000 more expensive on the same income. Getting quotes from several lenders, and improving your credit score before you apply, are the cheapest ways to win some of that back.

The cash you need at closing

The down payment isn't the only upfront cost. Freddie Mac estimates that closing costs typically run 2% to 5% of the purchase price, covering lender fees, title insurance, appraisal and prepaid taxes. On a $346,000 home that's about $6,900 to $17,300, so with 20% down you need roughly $76,000 to $87,000 in total.

Keep an emergency fund on top of that. Lenders often want to see a few months of payments in reserve, and the first year in a new home almost always brings unexpected bills.

Budget for owning, not just buying

The mortgage payment isn't the full cost of a house. A common rule is to set aside 1% to 2% of the home's value each year for maintenance and repairs, which is $3,500 to $7,000 a year on a $346,000 home. Big items like a new roof, a driveway or an HVAC system don't come up often, but they're expensive when they do. Our roofing calculator and guide to concrete slab costs give an idea of what those projects run.

Want to compare with a specific house? Our breakdown of the monthly payment on a $400,000 house shows it needs roughly $116,000 a year in income with 20% down.

How to raise your budget

• Pay down revolving debt first. Clearing a credit card or car loan frees up your debt-to-income ratio and often lifts your credit score too.
• Save toward 20% down. It removes PMI and, as the table above shows, raises the price the same monthly payment supports.
• Look at first-time buyer programs. Many states and cities offer down payment assistance and lower-rate loans for moderate-income buyers.
• Compare property tax rates. Two neighboring towns can differ by thousands of dollars a year, which changes how much house the same payment buys.
• Get preapproved before you shop. A lender's preapproval uses your real credit, debts and rate, so you know your actual limit before you fall for a house.

These figures are estimates for planning. Your actual budget depends on your credit score, the loan type, local taxes and your lender. Try different scenarios in the home affordability and mortgage calculator before you talk to a lender.

Sources & further reading

1. Primary Mortgage Market Survey (PMMS), week of October 22, 2026 — Freddie Mac
2. Selling Guide B3-6-02: Debt-to-Income Ratios — Fannie Mae
3. What is a debt-to-income ratio? — Consumer Financial Protection Bureau
4. Budgeting for Upfront Homebuying Costs — My Home by Freddie Mac
5. What to Know About Private Mortgage Insurance — Fannie Mae