How much house can I afford with $100,000 income?

Using the 28/36 rule: conservative target $285,000 (28% of gross to housing only), aggressive ceiling $295,000 (36% to total debt). Recommended middle: $290,000 — leaves room for emergencies and lifestyle.

What's the monthly payment at this price?

At $290,000 home price with 5% down ($14,500) at 7% for 30 years: PITI is $2,356/month. Breakdown: P&I $1,833, taxes $242, insurance $121, PMI $161.

What's my debt-to-income (DTI) ratio?

Housing DTI: 28% (target <28%). Total DTI: 35% (target <36%). Most lenders cap DTI at 36-43% depending on loan type. FHA allows up to 50% in some cases; conventional is stricter.

Is this realistic in today's market?

In 2026, US median home price is ~$420K and 30-year mortgage rates hover 6.5-7.5%. The $290,000 target above assumes 7% rate. In high-cost-of-living markets (Bay Area, NYC, Boston), the same income buys ~30-40% less. In low-COL areas (Midwest, Sun Belt suburbs), the same income often buys MORE than the 28/36 rule suggests.

Affordability scenario · Verified 2026-05-27

First-time buyer on $100K income with 5% down

Recommended home price: $290,000 using the 28/36 rule. Conservative ceiling: $285,000. Aggressive ceiling: $295,000. Monthly PITI at recommended: $2,356 (28% of gross income).

Recommended price

$290,000

Monthly PITI

$2,356

Down payment

$14,500

Housing DTI

28%

Monthly cost breakdown at $290,000

Component	Monthly	Annual
Principal & interest	$1,833	$21,996
Property tax (1% assumed)	$242	$2,904
Homeowners insurance (0.5%)	$121	$1,452
PMI (down < 20%)	$161	$1,932
Total PITI	$2,356	$28,272

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The 28/36 rule explained

Standard lender affordability rule used by most US mortgage underwriters:

28%: Housing payment (PITI) should not exceed 28% of gross monthly income. For $100,000 income, that's $2,333/month max.
36%: Total debt payments (housing + car loan + student loans + credit card minimums) should not exceed 36% of gross income. For your scenario: $3,000 − $600 existing debt = $2,400 available for housing.
Below 28%/36% gives you breathing room. Above signals stress.

Related affordability scenarios

First-time buyer on $60K income with FHA 3.5% down

→ Recommended $165,000 · PITI $1,385/mo

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Educational tool. Assumes property tax 1% and insurance 0.5% of home value annually (national averages — your state may differ). Math validated against Fannie Mae and Zillow affordability calculators. Verified 2026-05-27.