Finance
How Much House Can I Afford on an $80K Salary?
February 20, 20258 min read
The 28/36 Rule
Lenders use the 28/36 DTI rule to determine how much you can borrow. Your housing costs should not exceed 28% of gross monthly income, and total debts should not exceed 36%.
On an $80,000 salary, your gross monthly income is $6,667. That means your maximum monthly housing payment is $1,867 (28% rule).
What This Means for Home Prices
Assuming a 6.5% interest rate, 30-year term, and 20% down payment:
- Max home price: ~$380,000
- Conservative target: ~$320,000
- Monthly payment: ~$1,800 (including taxes and insurance)
If you have significant debts (car loans, student loans), your max will be lower due to the 36% back-end ratio.
Factors That Affect Affordability
- Down payment: Higher down payment = more buying power and no PMI
- Interest rate: Every 0.5% rate increase reduces buying power by ~$25,000
- Existing debts: Car payments, student loans, and credit cards reduce your DTI budget
- Property taxes: Vary dramatically by state (0.3% in Hawaii to 2.5% in New Jersey)
Calculate Your Number
Every situation is different. Use our Home Affordability Calculator to get a personalized estimate based on your exact income, debts, and down payment. You can also compare renting vs buying to see which makes more financial sense for your situation.