MORTGAGE GUIDE

How Much House Can I Afford Based on Income?

This guide focuses specifically on how your income alone affects how much house you can afford. While full affordability depends on debt, taxes, and interest rates, income is the fastest way to estimate a realistic price range.

The 28/36 rule explained

A common guideline lenders use is the 28/36 rule:

• No more than 28% of your gross monthly income should go toward housing expenses
• No more than 36% should go toward total debt (including your mortgage)

This rule gives a baseline, but your personal comfort level may be different depending on your lifestyle and financial goals.

What affects affordability

• Your total household income
• Existing debt (credit cards, loans)
• Interest rates
• Down payment size
• Property taxes and insurance

Why income alone is not enough

Two people with the same income can afford very different homes depending on their debt and spending habits. That's why using a calculator gives a much more realistic estimate.

To get a more accurate number, use the home affordability calculator and adjust your inputs based on your real financial situation.

For a more complete analysis that includes debt, taxes, and interest rates, see the full home affordability guide.