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How Much House Can I Afford? The Comfortable Number vs the Maximum (2026)

There are two answers to this question, and they are usually tens of thousands of dollars apart. The first is what a lender will approve. The second is what you can actually afford without financial stress. Understanding both numbers is the most important thing you can do before shopping for a home.

The Gap Between "Can" and "Should"

Lender Maximum

$420,000

43% DTI, 10% down, 6.37% rate

$100K income, $400/mo debts

Comfortable Number

$310,000

25% of $6,200/mo take-home

Room for savings and life

That $110,000 gap is the difference between a budget that works on paper and one that works in reality. At the lender maximum, your total housing cost (mortgage, taxes, insurance, PMI) consumes 35% of your gross income. At the comfortable number, housing takes 25% of take-home, leaving room for 401k contributions, emergency savings, home maintenance, and life.

The 28/36 Rule Explained

The 28/36 rule is the classic affordability guideline. Front-end (28%): total housing costs (PITI plus PMI plus HOA) should not exceed 28% of gross monthly income. Back-end (36%): total debt payments including housing should stay below 36% of gross income.

Worked Example: $75,000/year ($6,250/month gross)

Front-end (28%): $6,250 x 0.28 = $1,750/month maximum housing

Back-end (36%): $6,250 x 0.36 = $2,250/month maximum total debt

With $400/month existing debts: back-end allows $2,250 - $400 = $1,850 for housing. Front-end caps at $1,750 (the binding constraint). After taxes ($367/mo), insurance ($150/mo), and PMI (~$90/mo), roughly $1,143 remains for P&I, supporting a $183,000 loan at 6.37%.

Important: most lenders allow significantly higher ratios than 28/36. Conventional loans typically cap at 43% back-end DTI, and FHA can go to 50% with compensating factors. The 28/36 rule is a comfort guideline, not a lending limit.

The 25% of Take-Home Pay Approach

This approach is more conservative. Instead of using gross income (which includes money you never see because it goes to taxes and retirement), it uses your actual take-home pay. Keep total housing costs at 25% of net monthly income.

Why is this better for many buyers? Gross-based rules do not account for variations in tax burden. A buyer in Texas (0% state income tax) has more take-home pay than a buyer earning the same salary in California (9.3%+ state tax). A 28% gross income rule produces the same housing budget for both, even though the California buyer has significantly less disposable income. The take-home approach automatically adjusts for these differences.

Affordability by Income Level (2026)

Single filer, standard deduction, no state income tax, 10% down, 6.37% rate, $400/month existing debts.

IncomeTake-Home/mo28% HousingMax Home PriceComfortable
$50,000$3,500$1,167$175,000$115,000
$75,000$4,800$1,750$290,000$180,000
$100,000$6,200$2,333$420,000$310,000
$125,000$7,400$2,917$530,000$400,000
$150,000$8,600$3,500$640,000$490,000

Hidden Costs Beyond the Mortgage

Maintenance

$4,000-$8,000/yr

1-2% of home value annually. Covers HVAC, roof, plumbing, appliances, and general upkeep. Older homes cost more.

Utilities

$300-$500/mo

Gas, electric, water, sewer, trash, internet. Larger and older homes run higher.

Property Tax Increases

2-5%/yr

Assessments rise over time. Many states reassess on sale, potentially spiking your bill.

HOA Fees

$100-$500+/mo

Where applicable. Can increase annually and include special assessments for major repairs.

Moving & Setup

$5K-$20K

Movers, furniture, window coverings, tools, lawn equipment, and first-month surprises.

Insurance Increases

3-8%/yr

Home insurance premiums have risen sharply since 2023 in many states, especially in disaster-prone areas.

Income-Specific Guides

$100K Salary Pre-Approval Scenarios

Six debt levels with exact approval amounts, loan type comparisons, and regional context.

$75K Salary Pre-Approval Scenarios

FHA advantages at $75K, first-time buyer programs, and affordable metro analysis.

Back to calculatorDown payment guideDTI explainedHome insurance costs

Frequently Asked Questions

How much house can I afford on a $100K salary?+
On $100,000/year with no other debts and 10% down at 6.37%, you can get pre-approved for roughly $420,000-$460,000 in home price. However, the comfortable affordability number using 25% of take-home pay is closer to $300,000-$330,000. With $500/month in existing debts, pre-approval drops to $340,000-$380,000. The gap between these numbers is real money you might need for retirement savings, emergencies, and homeownership costs.
What is the 28/36 rule for mortgages?+
The 28/36 rule states that no more than 28% of gross monthly income should go toward housing costs (front-end DTI) and no more than 36% toward total debt (back-end DTI). On $6,000/month gross, that means a maximum of $1,680 for housing. Most lenders allow higher ratios (43% back-end for conventional, 50% for FHA), but 28/36 represents a comfortable level recommended by financial advisors.
Should I use gross income or take-home pay?+
Lenders use gross income for DTI and pre-approval calculations. Financial advisors recommend using after-tax take-home pay for personal budgeting. The 25% of take-home rule is more conservative. On $100K gross ($6,200/month take-home for a single filer), 28% of gross is $2,333/month while 25% of take-home is $1,550/month, a $783 monthly difference that buys significant financial flexibility.
How do dual incomes affect affordability calculations?+
Lenders combine both gross incomes. If partners earn $80K and $60K, the lender uses $140K gross ($11,667/month). Many financial advisors recommend qualifying on the higher income alone and treating the second as a buffer. This protects against job loss, career changes, parental leave, or other situations that could temporarily reduce household income to one salary.
What hidden costs should I budget for beyond the mortgage?+
Annual maintenance averages 1-2% of home value ($4,000-$8,000 on a $400K home). Utilities run $300-$500/month. HOA fees range $100-$500+/month where applicable. Property taxes can increase annually. Moving costs, furniture, and initial repairs add $5,000-$20,000 upfront. Budget an additional $800-$1,500/month beyond your mortgage payment for these costs.
Does the 28/36 rule still apply in expensive markets?+
In high-cost areas like San Francisco or New York, many buyers exceed 28/36 because median home prices require 40-50% of income for housing. Lenders accommodate this through higher DTI limits and high-balance loans (up to $1,249,125 in 2026). However, exceeding 28/36 means less money for everything else. In these markets, the gap between lender maximum and comfortable affordability can exceed $300,000.