How Much House Can I Afford on a $100,000 Salary?
Using a common 28% housing guideline, a $100,000 salary supports about $2,333 a month in housing costs, roughly a $347,000 to $379,000 home depending on rates. Here's the math and what it leaves out.
Quick answer
Using the common 28% front-end guideline, $100,000 of gross income supports about $2,333 a month for principal, interest, taxes, and insurance. With 20% down, 1.1% property tax, and $2,000 a year insurance, that's roughly $379,000 at 6%, $363,000 at 6.5%, or $347,000 at 7%.
The calculation
| Mortgage rate | Approximate home price |
|---|---|
| 6.0% | $379,000 |
| 6.5% | $363,000 |
| 7.0% | $347,000 |
Show the numbers behind this chart
| Home price | |
|---|---|
| 6.0% | $379,000 |
| 6.5% | $363,000 |
| 7.0% | $347,000 |
What changes the answer
- Other debts can make the back-end ratio the limit.
- Down payment size and mortgage insurance.
- Local taxes and insurance, which vary widely.
- HOA dues.
What the guideline leaves out
Maintenance, utilities, savings goals, and take-home pay. See the full method in how much house can you afford.
The takeaway
On $100,000, a common guideline points to a home in the mid-$300,000s at today's typical rates, depending on taxes, insurance, and debts. Treat it as a ceiling and test it against your actual budget.
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