House Affordability Calculator 2026
Calculate your maximum affordable home price based on income, down payment, and the 28/36 rule. Free, instant, with state-specific property tax rates.
You can afford a home up to
$266,611
That's a 2-bedroom home
Based on your $75,000 income with 20% down
Your $266,611 budget buys
Monthly payment breakdown
$1,750/mo
Home price
$266,611
Down payment
$53,322
Loan amount
$213,289
No PMI
Waived (20%+ down)
This is an estimate based on the 28/36 DTI guideline. Actual mortgage approval depends on credit score, employment history, other assets, and lender-specific criteria. Consult a mortgage lender for a pre-approval.
How it works
This calculator uses the 28/36 rule — a widely used guideline for mortgage affordability. It says your total housing costs should not exceed 28% of gross monthly income (front-end DTI), and your total debt payments should not exceed 36% (back-end DTI).
Housing costs include mortgage principal and interest, property tax, homeowners insurance, PMI (if applicable), and HOA fees. The calculator works backwards from your income to find the maximum home price that keeps these costs within your chosen DTI ratio.
Mortgage payment is calculated using the standard amortization formula: M = P[r(1+r)^n]/[(1+r)^n – 1], where P is the loan amount, r is the monthly interest rate, and n is the total number of payments (360 for a 30-year loan).
Property tax rates vary by state and county. This calculator uses state average rates from the Tax Foundation and Census Bureau. You can adjust the rate to match your specific location.
Affordability by city
Median home prices and property tax rates for popular cities. Use these as reference points when planning your home purchase.
| City | Median home price | Property tax | Insurance/yr |
|---|---|---|---|
| San Francisco, CA | $1.35M | 0.73% | $1,800 |
| New York City, NY | $780K | 1.20% | $1,600 |
| Los Angeles, CA | $950K | 0.74% | $1,500 |
| Chicago, IL | $340K | 1.97% | $1,500 |
| Miami, FL | $590K | 0.93% | $4,200 |
| Seattle, WA | $850K | 0.90% | $1,300 |
| Austin, TX | $450K | 1.75% | $2,400 |
| Denver, CO | $575K | 0.55% | $2,100 |
| Raleigh, NC | $420K | 0.81% | $1,600 |
| Nashville, TN | $440K | 0.66% | $2,000 |
| Phoenix, AZ | $425K | 0.63% | $1,800 |
| Tampa, FL | $380K | 0.89% | $3,800 |
| Charlotte, NC | $385K | 0.79% | $1,500 |
| Portland, OR | $525K | 0.93% | $1,200 |
| Minneapolis, MN | $350K | 1.12% | $1,700 |
| Salt Lake City, UT | $530K | 0.58% | $1,100 |
Sources: Zillow Home Value Index, Redfin, U.S. Census ACS, Tax Foundation (2024/2025 estimates).
FAQ
How much house can I afford on a $100,000 salary?
With the recommended 28% DTI ratio, 20% down, 6.75% interest, and average property taxes, you can afford roughly $385,000–$420,000. At a comfortable 32% DTI, that rises to about $440,000–$480,000. Use the calculator above for your exact numbers.
What is the 28/36 rule?
The 28/36 rule says your housing costs should not exceed 28% of gross income (front-end DTI), and total debt payments should not exceed 36% (back-end DTI). Lenders use this to determine how much mortgage you qualify for.
How much should I put down on a house?
20% down is ideal because it avoids PMI. However, many buyers put down 5-15%. FHA loans allow 3.5% down. A smaller down payment means higher monthly costs (larger loan + PMI) but lets you buy sooner.
What is PMI and how do I avoid it?
PMI (Private Mortgage Insurance) is required when you put less than 20% down. It typically costs 0.5-1% of the loan per year. You can avoid it by making a 20% down payment, or remove it once you reach 20% equity.
Why do property taxes matter so much?
Property taxes are a major part of your monthly housing cost. On a $400,000 home, the difference between Hawaii (0.28%) and New Jersey (2.28%) is over $660/month. Higher property taxes reduce how much house you can afford.
How accurate is this calculator?
This provides a solid estimate using standard DTI guidelines and real property tax rates. Actual mortgage approval depends on credit score, employment history, assets, and lender-specific underwriting. Get a pre-approval for a precise number.
Browse by state
State-specific calculators with local property tax rates for all 50 states.
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