Home affordability calculator
How much house can you responsibly buy? Your income, debts and savings set three prices: a comfortable budget, a stretch, and the most a lender might approve, under conventional, FHA, VA or USDA rules with your state's property tax and insurance.
Quick answer: On $100,000 a year with $500 of monthly debts and $40,000 down, you can comfortably afford about a $318,000 home at today's 7.24% Freddie Mac 30-year average (the 28/36 rule), a payment of about $2,333 a month with taxes and insurance. A lender may approve up to about $476,000.
By John Crane, MBA & the Editorial Team · Updated for the 2026 tax year. How we check our numbers
Comfortable price, Conventional loan
$297,625
$2,333 a month. Stretch to $327,135; lenders may approve up to $327,135
| Principal and interest | $1,755.71 | 75.2% |
|---|---|---|
| Property tax | $324.91 | 13.9% |
| Insurance | $171.13 | 7.3% |
| PMI | $81.58 | 3.5% |
- Comfortable
- $297,625
- Stretch
- $327,135
- Lender maximum
- $327,135
- Loan amount
- $257,625
- Cash needed
- $53,595
- Limited by
- Housing ratio
Three ways to count it
| Budget | DTI limit | Max price | Monthly | Your ratios | Limited by |
|---|---|---|---|---|---|
| Comfortable | 28% / 36% | $297,625 | $2,333 | 28.0% / 34.0% | Housing ratio |
| Stretch | 45% total | $327,135 | $2,593 | 31.1% / 37.1% | Closing cash |
| Lender maximum | 50% total | $327,135 | $2,593 | 31.1% / 37.1% | Closing cash |
Price vs interest rate
Conventional, 30 yearsCash to close
Comfortable priceSee the comfortable price in the mortgage calculator for the full amortization schedule and when mortgage insurance ends.
Home affordability calculators by state
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- District of Columbia
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
How this is calculated
Debt-to-income
Housing (principal, interest, property tax, insurance, mortgage insurance and HOA) is compared with gross monthly income, alone (front-end) and with your other debts (back-end). Comfortable uses 28/36. Stretch uses each program's standard guideline: 45% total for conventional, 31/43 for FHA, 41% for VA, 29/41 for USDA. The lender maximum allows 50% (44% for USDA) as automated approvals and compensating factors can.
Program rules (2026)
Conventional: 3% minimum down, PMI above 80% loan-to-value, FHFA limit $832,750 in most counties. FHA: 3.5% down, 1.75% upfront and 0.50% to 0.75% a year of mortgage insurance, limit $541,287 in most counties. VA: no down payment, funding fee 1.25% to 3.3% unless exempt, residual income per 38 CFR 36.4340. USDA: 1% upfront and 0.35% a year.
Local costs and cash
Property tax defaults to your state's effective rate and insurance to what owners there report paying, both from the Census Bureau's 2024 American Community Survey. The price must also leave enough cash for closing costs and the reserves you choose.
Sources
- Freddie Mac Primary Mortgage Market Survey (weekly average mortgage rates)
- U.S. Census Bureau American Community Survey (property tax and home values by state)
- FHFA conforming loan limits
- HUD: FHA single family housing (loan limits and mortgage insurance)
- VA: home loan funding fee and closing costs
- USDA Rural Development: single family housing guaranteed loans
- Arch Mortgage Insurance: borrower-paid monthly PMI rate card
Related guides
- How much house can I afford? The 28/36 rule, explainedHow the 28/36 rule turns your income and debts into a home price, what lenders allow, and how rates, taxes and your down payment change the answer.
- FHA vs conventional loans: which costs less?FHA and conventional mortgages compared on down payment, credit score, mortgage insurance and total cost, and where each one comes out ahead.
Questions
How much house can I afford on $100,000 a year?
With $500 of monthly debts, $40,000 down and a 30-year conventional loan at about 7.3%, a comfortable budget is roughly $280,000 to $340,000 depending on your state's property taxes and insurance, about $310,000 in a typical state. Enter your numbers above for an exact figure.
What is the 28/36 rule?
A guideline that housing costs stay under 28% of gross income and all debt payments under 36%. Lenders often approve more, up to 43% to 50% of income, but the lower ratios leave room for saving and surprises.
Is FHA or conventional better for a small down payment?
FHA is easier with a lower credit score, but its mortgage insurance usually lasts the life of the loan. Conventional PMI is cheaper with good credit and ends at 78% loan-to-value. Compare programs shows both for your numbers.