How much house can I afford?
Lenders answer with ratios; your stomach answers with cash flow after taxes. This page explains the 28/36 rules people actually hear at pre-approval, compares them to rough US median context (with links to official series), and shows side-by-side payment math you can re-run with your rate and taxes. It is education only—not a loan approval.
At a glance: If your household earns about $7,500/month before tax ($90,000/year), a common 28% housing guideline points to about $2,100/month for PITI (principal, interest, taxes, insurance)—not the whole price of the house. Whether that supports a $350,000 home or a $500,000 home swings wildly with down payment, rate, property tax, and HOA. National median sale prices are published quarterly; many public charts land in the roughly $400,000-ish neighborhood in recent years—see sources for the latest line, not a blog snapshot.
The 28% and 36% rules (what loan officers mention)
These are guidelines, not laws—programs like FHA, VA, and jumbo loans have different overlays. They still help you decode “how did they get that number?”
US median context (why “national average” stories exist)
Your offer depends on your city; medians help you see whether you are near typical US scale.
| Measure | Typical public range / idea | Why it matters for “how much house” |
|---|---|---|
| Median household income | Often discussed around high $60,000s–$80,000s in recent Census-style releases (year-dependent). | Sets a gross income anchor for ratio math—many households earn above or below. |
| Median existing-home sale price | Many national series show mid–high $300,000s to $400,000s+ in recent years before your local market adjustment. | Shows why a payment-first budget matters: the “typical” price is not affordable at every income without a large down payment or dual earners. |
| Your metro | Can be far above or below US medians. | Two people with the same salary qualify for different houses in Cleveland vs San Francisco because taxes, insurance, and prices diverge. |
Pull the current quarter from the sources below—do not treat any blog table as the live market.
From income to payment (one picture)
Real life includes federal tax, FICA, 401(k)—so net cash feels tighter than 72% implies. That is why we link take-home pay from the salary comfort guide.
Comparative examples (28% of gross → payment budget)
Multiply annual gross × 1/12 to get monthly gross, then × 0.28 for a textbook housing payment budget. Not a pre-approval.
| Household gross (example) | Monthly gross | ~28% PITI line | Rough 3× income price idea |
|---|---|---|---|
| $60,000 / yr | $5,000 | ~$1,400 | ~$180,000 purchase (very rough) |
| $90,000 / yr | $7,500 | ~$2,100 | ~$270,000 purchase (very rough) |
| $120,000 / yr | $10,000 | ~$2,800 | ~$360,000 purchase (very rough) |
| $150,000 / yr | $12,500 | ~$3,500 | ~$450,000 purchase (very rough) |
The “3× income” column is only a conversation shortcut. At 7%–8% mortgage rates, the payment for a given price is higher than in the 3% era—so banks may approve less house for the same income unless you put more down.
Down payment & rate: two levers that move price
- Smaller loan amount → lower principal & interest.
- May remove PMI near 20% equity—another monthly cost line.
- Bigger loan + higher interest → payment eats the same 28% faster.
- Same salary suddenly maps to a lower affordable price.
Use the rent vs buy calculator on Income Clarity to stress-test price, rate, taxes, and insurance together.
Lender maximum vs “sleep at night” payment
Banks can approve you at the edge of ratios; families often choose 5–15% under the ceiling to keep room for daycare, travel, or job change. If the 28% line feels tight on your actual take-home, treat the bank’s number as a ceiling, not a target.
Next steps on Income Clarity
- Rent vs buy calculator — set price, rate, taxes, horizon.
- After-tax income — reconcile gross ratios with net reality.
- Salary needed to live comfortably — budget beyond the mortgage.
- How much rent can I afford — if you are still comparing leasing.
Frequently asked questions
How much house can I afford based on my salary?
Start with gross monthly income, apply the ~28% PITI idea and ~36% total debt idea, then adjust for your down payment, rate, taxes, and insurance. Your lender’s underwriting system will produce the real limit.
What is the 28/36 rule?
28% of gross for housing (PITI) and 36% of gross for all required debt payments—classic teaching numbers that many buyers still hear in simplified form.
How many times my salary should my house be?
2.5–3× gross is a napkin check. High rates or other debts mean you should lean on payment math and lender ratios instead.
Should I use gross or net income?
Gross drives most ratio tests; net drives whether you enjoy homeownership. Check both.
Sources (refresh numbers here)
- Federal Reserve Economic Data (FRED), Median Sales Price of Houses Sold for the United States — quarterly median sale prices.
- U.S. Census Bureau, income topics — median household income releases and methodology.
- Consumer-facing overviews of housing affordability (e.g., CFPB / HUD materials) for vocabulary like PITI and DTI—search current pages from those agencies.