How much house can I afford with $150,000 income?

Using the 28/36 rule: conservative target $535,000 (28% of gross to housing only), aggressive ceiling $500,000 (36% to total debt). Recommended middle: $520,000 — leaves room for emergencies and lifestyle.

What's the monthly payment at this price?

At $520,000 home price with 20% down ($104,000) at 7% for 30 years: PITI is $3,418/month. Breakdown: P&I $2,768, taxes $433, insurance $217.

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

Housing DTI: 27% (target <28%). Total DTI: 37% (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 $520,000 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

Two-income household at $150K combined

Recommended home price: $520,000 using the 28/36 rule. Conservative ceiling: $535,000. Aggressive ceiling: $500,000. Monthly PITI at recommended: $3,418 (27% of gross income).

Recommended price

$520,000

Monthly PITI

$3,418

Down payment

$104,000

Housing DTI

27%

Monthly cost breakdown at $520,000

Component	Monthly	Annual
Principal & interest	$2,768	$33,216
Property tax (1% assumed)	$433	$5,196
Homeowners insurance (0.5%)	$217	$2,604
Total PITI	$3,418	$41,016

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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 $150,000 income, that's $3,500/month max.
36%: Total debt payments (housing + car loan + student loans + credit card minimums) should not exceed 36% of gross income. For your scenario: $4,500 − $1,200 existing debt = $3,300 available for housing.
Below 28%/36% gives you breathing room. Above signals stress.

Related affordability scenarios

$100K income with significant student loans

→ Recommended $265,000 · PITI $2,057/mo

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How much house can I afford

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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.