How Much House Can I Afford? (2026)
TL;DR: In 2026, most U.S. buyers can afford a home priced 3.5–4.5× gross annual income at a 28/36 debt-to-income ratio, assuming 10–20% down at a 6.5–7.0% mortgage rate — but your true monthly cost runs 22–35% higher than the mortgage payment once taxes, insurance, PMI, HOA, and maintenance reserves are included.
Bottom line
- Typical range: Home price ≈ 3.5–4.5× gross income (conventional)
- Median: $95k income → $340k–$425k home; $150k income → $525k–$675k
- Biggest driver: Existing monthly debt (each $100/mo cuts affordability by ~$16k) + rate (each 0.5% cuts affordability by ~7%)
- When this applies: Recalculate any time rates move >0.25% or your monthly debt changes by >$100.
2026 affordability at 20% down, 6.75% rate, 28% front-end DTI, $0 other debt
| Gross annual income | Max lender price | True monthly cost cap price | Monthly PITI at lender max |
|---|---|---|---|
| $60,000 | $225,000 | $185,000 | $1,400 |
| $80,000 | $295,000 | $245,000 | $1,865 |
| $100,000 | $370,000 | $305,000 | $2,335 |
| $125,000 | $465,000 | $385,000 | $2,930 |
| $150,000 | $555,000 | $460,000 | $3,505 |
| $200,000 | $740,000 | $615,000 | $4,675 |
| $300,000 | $1,110,000 | $920,000 | $7,000 |
Overview
Affordability is not one number — it's three. Lenders will approve you at a front-end DTI up to 28% (housing / gross income) and back-end DTI up to 36–43% (all debt / gross income). But the maximum lender-approved price is almost always higher than what a homeowner can actually sustain, because standard affordability math ignores property taxes above the escrow line, homeowner insurance premium spikes, PMI removal timing, HOA growth, and — the biggest omission — the maintenance reserve every real home eats. This calculator gives you three numbers: the price a lender will approve, the price your true monthly cost will fit, and the 5-year cash reserve you'll need to weather a single major system replacement. Use it before you get preapproved so you don't tour homes at the top of the wrong number.
FAQs
How much house can I afford on a $100k salary in 2026?
At $100k gross income, 20% down, 6.75% mortgage rate, and no other debt, most lenders will approve up to about $370,000. However, the price that fits a sustainable true monthly cost (mortgage + taxes + insurance + maintenance reserve at 1% of home value) is closer to $300,000–$320,000. Existing car loans or student debt of $500/mo cuts both numbers by roughly $80,000.
What is the 28/36 rule for home affordability?
The 28/36 rule caps your housing payment at 28% of gross monthly income (front-end DTI) and your total monthly debt at 36% (back-end DTI). At $100k income, that's $2,333/mo for housing and $3,000/mo total debt. Lenders will often stretch back-end DTI to 43% for conventional and 50% for FHA, but going above 36% is where reserves start to crumble.
Should I use the lender's max or my true monthly cost cap?
Use the lower of the two. The lender max is what you can be approved for; the true monthly cost cap is what you can sustain after property taxes, insurance, PMI, HOA, and a 1% maintenance reserve. Buyers who buy at the lender max within their first 3 years are 3× more likely to defer major maintenance — which compounds into $15k–$40k in avoidable damage.
How does mortgage rate change how much house I can afford?
Every 0.5% change in mortgage rate shifts affordability roughly 6–8%. At $100k income and 20% down: a 6.25% rate approves up to $390k, 6.75% approves $370k, 7.25% approves $350k. If rates drop 0.75% in the next 12 months, refinancing can recover some payment room — but never buy planning to refinance.
How much down payment do I need in 2026?
Minimum: 3% conventional, 3.5% FHA, 0% VA/USDA. Sweet spot: 20% conventional to eliminate PMI (adds ~$100–$300/mo). PMI removal is automatic at 78% LTV based on original value, or at 80% LTV by request with appraisal. Skipping PMI is worth roughly $18k over 5 years on a $400k home.
Should I include maintenance in my affordability calculation?
Yes — this is the single biggest omission in standard calculators. Budget 1% of home value annually for maintenance on homes 10–20 years old, rising to 1.5–2.5% for older homes. On a $400k home, that's $4,000–$10,000/year, or $335–$835/mo — enough to move you from comfortable to stretched. See our True Cost of Ownership Calculator Explained guide for the full formula.