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Home affordability · $100K salary
How much house can I afford on a $100K salary?
On a $100K salary ($100,000 a year), with $500 a month in other debts and 10% down, you can comfortably afford a home of about $292,000. That follows the 28/36 rule at about 7.35% for a 30-year mortgage (October 2026 average). Lenders often approve more: up to about $386,000 at 43% debt-to-income.
The answer
Monthly cost
What a $292,000 home costs each month
| Cost | Per month |
|---|---|
| Principal and interest | $1,810 |
| Property tax (1%) | $243 |
| Home insurance | $122 |
| Mortgage insurance (PMI) | $153 |
| Housing payment lenders count | $2,329 |
| Upkeep reserve (1% a year) | $243 |
| Real monthly cost | $2,572 |
That is 31% of gross income once upkeep is counted. You would need about $38,000 at closing: $29,240 down plus $8,760 in closing costs. At this income the 28% limit on housing alone is what caps the price; your other debts are not the constraint.
Other debts
How car loans and student loans change it
Under the 28/36 rule, debts up to about $667 a month (8% of income) don't lower the comfortable price, because the 28% housing limit applies first. Above that, and at every level under the 43% stretch, each dollar of debt payments reduces the house.
| Other debts per month | Comfortable (36%) | Stretch (43%) |
|---|---|---|
| $0 | $292,000 | $449,000 |
| $250 | $292,000 | $417,000 |
| $500 | $292,000 | $386,000 |
| $1,000 | $250,000 | $324,000 |
| $1,500 | $188,000 | $261,000 |
Mortgage rates
How the rate changes it
A one-point drop in rates buys noticeably more house on the same income.
| 30-year rate | Comfortable price | Principal and interest |
|---|---|---|
| 6.35% | $316,000 | $1,770 |
| 6.85% | $304,000 | $1,792 |
| 7.35% (today) | $292,000 | $1,810 |
| 7.85% | $281,000 | $1,829 |
| 8.35% | $271,000 | $1,849 |
Down payment
How your down payment changes it
Under 20% down you pay mortgage insurance (PMI) until you owe 80% of the price.
| Down payment | Comfortable price | PMI | Cash needed at closing |
|---|---|---|---|
| 3% down | $274,000 | $155/mo | $16,500 |
| 5% down | $279,000 | $155/mo | $22,400 |
| 10% down | $292,000 | $153/mo | $38,000 |
| 20% down | $345,000 | None | $79,400 |
Questions
Common questions
What mortgage payment can I afford on a $100K salary?
Under the 28/36 rule, up to about $2,333 a month for the mortgage, property tax, insurance and PMI, with $500 in other debts. Lenders that allow 43% debt-to-income would count up to $3,083.
Is $100K enough to buy a house?
At about 7.35% rates and 10% down, $100K comfortably supports a home around $292,000, needing about $38,000 saved for the down payment and closing. Whether that buys a house depends on local prices.
Assumptions
How we worked it out
- Gross household income $100,000 a year ($8,333 a month).
- $500 a month in other debt payments, such as a car or student loan.
- 10% down, 3% closing costs, good credit (700-759), 30-year fixed at 7.35%.
- Property tax 1% of the price a year, home insurance about 0.5%, PMI under 20% down, no HOA.
- Upkeep reserve 1% of the price a year, for a home 10 to 30 years old.
- Comfortable is the 28/36 rule: housing under 28% of gross income and all debts under 36%.
Change any of these in the home affordability calculator.
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