Quick answer: On a $100,000 salary you can afford a home of about $316,500 if you keep the full housing payment at 28% of gross income ($2,333 a month), assuming $60,000 down, $500 of other monthly debts and the 7.24% average 30-year rate Freddie Mac reported on October 29, 2026. If you stretch to 36% of income for housing, the price rises to about $397,500. A smaller down payment, bigger debts or a higher rate pull those numbers down.
Updated November 2026: All prices are now calculated with the Digicalcy home affordability calculator at the October 29, 2026 Freddie Mac rate, including property tax, insurance and PMI. We replaced the old 2025 rate claims and unsourced city tables with dated Census and NAR data, and added Fannie Mae and FHA debt-to-income limits.
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The short answer at today's rate
The figures below come from the Digicalcy home affordability calculator. It finds the highest price where principal, interest, property tax, homeowners insurance, HOA dues and PMI fit within two limits at once: housing at 28% of gross monthly income and all debts at 36% (the "comfortable" price), or 36% and 43% (the "stretch" price).
By down payment: With $100,000 of income, a 7.24% 30-year rate, $500 of monthly debts, 1.1% property tax, $2,000 a year of insurance and 0.6% PMI, the comfortable price is $276,500 with $15,000 down, $316,500 with $60,000 down and $368,300 with $100,000 down.
Those inputs are the calculator's defaults, not national averages for your area. Property tax and insurance vary a lot by state and county, so treat the results as a starting point and replace them with local quotes.
What the $2,333 payment actually buys
Here is how the 28% budget splits on the $316,500 comfortable home. With $60,000 down, the loan is $256,500 and the down payment is 19% of the price, so PMI applies until you reach 20% equity.
| Monthly cost | Amount |
|---|---|
| Principal and interest (7.24%, 30 years) | $1,748.04 |
| Property tax (1.1% a year) | $290.12 |
| Homeowners insurance ($2,000 a year) | $166.67 |
| PMI (0.6% of the loan a year) | $128.25 |
| Total housing payment | $2,333.08 |
The $2,333.08 total is 28% of $8,333 monthly gross pay. Nothing in it covers utilities, maintenance or closing costs, which the first-time homeowner budget guide covers in detail.
Scenarios: down payment and existing debts
Your down payment and your other monthly debts are the two inputs you control most. The table holds everything else at the defaults above (7.24% rate, 1.1% tax, $2,000 insurance, 0.6% PMI).
| Down payment | Debts $0 to $500 | Debts $1,000 |
|---|---|---|
| $15,000 | $276,500 | $236,000 |
| $30,000 | $289,800 | $249,300 |
| $60,000 | $316,500 | $290,000 |
| $100,000 | $368,300 | $325,200 |
Two things stand out. First, up to $500 of other debts makes no difference to the comfortable price: 36% of income minus $500 still leaves more than the 28% housing limit, so income sets the ceiling. At $1,000 a month of debts, the 36% total-debt rule takes over and caps housing at $2,000. At $1,500 of debts, the comfortable price with $60,000 down falls to $225,300.
Second, every extra dollar of down payment does more than lower the loan. Below 20% down you also pay PMI, so crossing the 20% line removes a cost entirely. That helps the $60,000-down buyer with $1,000 of debts: at $290,000, $60,000 is just over 20% down, so the payment carries no PMI at all.
Comfortable home price by down payment
$100,000 income, $500 monthly debts, 7.24% 30-year rate
Source: Digicalcy home affordability calculator, 1.1% property tax, $2,000 insurance, 0.6% PMI below 20% down
If a car loan or student loan is the reason you are debt-limited, the debt-to-income calculator shows how much each payment you clear lowers your ratio.
How the mortgage rate changes the answer
Freddie Mac's Primary Mortgage Market Survey put the average 30-year fixed rate at 7.24% for the week of October 29, 2026, down from 7.32% the week before but up from 6.17% a year earlier. The 15-year average was 6.60%. Short-term rates are also higher: the Federal Reserve raised its federal funds target to 3.75%–4.00% on September 16, 2026 and kept it there on October 28.
| 30-year rate | Comfortable | Stretch |
|---|---|---|
| 6.17% (a year earlier) | $340,700 | $429,300 |
| 7.24% (Oct 29, 2026) | $316,500 | $397,500 |
| 8.24% (one point higher) | $300,000 | $371,300 |
With $60,000 down and $500 of debts, the roughly one-point rise over the past year cut the comfortable price by $24,200. Another point would cut it by $16,500 more, because at $300,000 the down payment reaches 20% and PMI disappears, which cushions the drop.
The rate you are offered can differ from the survey average by your credit score, down payment, loan type and any points you pay. Raising your score before you apply is one of the few ways to move it; our guide to improving your credit score explains what counts.
Run your own numbers: enter your income, debts, down payment and today's rate in the home affordability calculator to see your comfortable and stretch price.
The 28/36 rule vs what lenders actually allow
The 28/36 rule is a budgeting guideline, not a lending rule. Lenders qualify you mainly on your total debt-to-income ratio (DTI): all monthly debt payments, including the new housing payment, divided by gross monthly income.
- Fannie Mae conventional loans: the Selling Guide (B3-6-02) caps total DTI at 36% for manually underwritten loans, up to 45% if you meet its credit score and reserve requirements, and at 50% for loans run through Desktop Underwriter. It sets no separate housing-only ratio.
- FHA loans: for manually underwritten loans, HUD's ratio matrix allows 31% for housing and 43% in total, rising to 37/47, 40/40 or 40/50 with specific compensating factors such as cash reserves or residual income. Borrowers with scores below 580 are held to 31/43 (Mortgagee Letter 2026-11). Most FHA loans are approved through HUD's TOTAL Scorecard, where the lender's automated findings set the limit.
Here is what a total-DTI cap alone would allow on $100,000 of income, with $60,000 down at 7.24%. These are illustrations of the ceiling, not approvals; lenders also weigh credit, savings and the loan program.
| Total DTI cap | $500 debts | $1,000 debts |
|---|---|---|
| 36% | $336,700 | $290,000 |
| 45% | $427,800 | $367,100 |
| 50% | $478,500 | $417,700 |
A 50% DTI on $100,000 means $4,167 a month going to debts before taxes, retirement savings, utilities and food. Single, in a state with no income tax and with no pre-tax deductions, $100,000 nets about $6,598 a month in 2026 (Digicalcy Texas paycheck calculator). That would leave about $2,432 for everything else. Being approved for a payment and being comfortable with it are different questions.
Taxes, insurance and PMI: the costs that move your price
Property tax
Property tax is often the second-largest part of the payment, and it varies more by location than any other input. Using the U.S. Census Bureau's 2024 American Community Survey (median real estate taxes paid divided by median home value, compiled by BillMapper), here is how the state tax rate alone changes the comfortable price, with every other input left at the defaults.
| State (tax rate) | Comfortable price | Median home value |
|---|---|---|
| New Jersey (1.89%) | $300,000 | $496,000 |
| Texas (1.31%) | $309,900 | $313,200 |
| California (0.71%) | $329,500 | $759,500 |
| North Carolina (0.61%) | $333,000 | $333,000 |
| Alabama (0.38%) | $341,400 | $233,300 |
The median values are for owner-occupied homes in the 2024 survey, not current sale prices. For a current national benchmark, the National Association of Realtors reported a median existing-home price of $417,500 for September 2026, up 1.3% from a year earlier. That is about $101,000 above the comfortable price in the main example.
State averages hide large county differences, and tax bills can change after you buy if the home is reassessed. The property tax calculator estimates the bill for a specific price and rate.
Homeowners insurance and HOA dues
The calculator's $2,000 a year insurance figure is an assumption. Raising it to $3,000 lowers the comfortable price from $316,500 to $306,400. HOA dues come straight out of the same budget: $300 a month of dues cuts the price to $294,300.
PMI and FHA mortgage insurance
Conventional loans with less than 20% down usually carry private mortgage insurance. Its cost depends on your credit score and down payment; the 0.6% used here is an assumption. Under federal law you can ask to cancel PMI when the balance reaches 80% of the home's original value, and it generally ends automatically at 78% (CFPB).
FHA loans work differently: an upfront premium of 1.75% of the base loan plus an annual premium, which is 0.55% for most 3.5%-down loans of $726,200 or less and stays for the life of the loan when you put down less than 10% (HUD Mortgagee Letter 2023-05). The calculator models PMI only, so for an FHA estimate, enter about 0.55% in the PMI field and remember the upfront premium. The home loan guide compares FHA, VA, USDA and conventional costs side by side.
Illustrative example: one buyer, start to finish
Illustrative example. A single buyer earns $100,000, has a $400 car payment and $100 of minimum credit card payments, has saved $45,000 and wants to keep $15,000 aside for closing costs and reserves. That leaves $30,000 for the down payment.
- Income limit28% of $8,333 = $2,333 a month for housing
- Debt check36% = $3,000, minus $500 debts = $2,500, so income limits
- Price$289,800 at 7.24% with $30,000 down
- Cash check2% to 5% closing costs = $5,796 to $14,490
The $15,000 held back covers closing costs at the low-to-middle part of the 2%–5% range Freddie Mac gives, but not the high end plus reserves. In this case, a price nearer $280,000, or a seller credit toward closing costs, keeps more cash in the bank after moving in.
Common mistakes when sizing your budget
- Using principal and interest only. On the $316,500 example, tax, insurance and PMI add $585 a month to the $1,748 loan payment.
- Treating the preapproval amount as the budget. A lender working to a 45% or 50% DTI can approve far more than the 28/36 price.
- Using last year's rate. A buyer who sized a budget at 6.17% a year ago would now find $24,200 less house at the same payment.
- Forgetting cash after closing. Spending every dollar on the down payment leaves nothing for repairs or a lost paycheck.
- Comparing only to rent. Ownership adds maintenance, tax changes and transaction costs. The rent vs buy calculator compares the two over time.
Frequently asked questions
Can I afford a $400,000 house on a $100,000 salary?
Not at the defaults used here: $400,000 is above both the comfortable price ($316,500) and the stretch price ($397,500) with $60,000 down at 7.24%. It fits the stretch range with about $100,000 down (stretch price $454,600), or with a lower rate or lower property tax than assumed.
How much income do I need for the median-priced home?
The national median existing-home price was $417,500 in September 2026 (NAR). At 7.24% with 20% down ($83,500), 1.1% tax and $2,000 insurance, the payment is about $2,826 a month, which is 28% of roughly $121,100 a year.
Does a married couple earning $100,000 combined get the same answer?
Yes. Lenders and the calculator use total household gross income and total household debts, so the price is the same whether $100,000 comes from one earner or two. Take-home pay can differ because of filing status, which affects how comfortable the payment feels.
Should I use gross or take-home pay?
Lenders use gross income for DTI, so the 28/36 limits are on gross pay. For your own budget, check the payment against take-home pay too, since taxes and payroll deductions can take 20% or more of gross.
Plug your own income, debts and local tax rate into the home affordability calculator before you talk to lenders, so you walk in knowing your comfortable number.
This guide shows general calculations using rates and rules current as of November 1, 2026. It is not a loan approval or personal financial advice; your lender's terms and your local taxes and insurance will differ.