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Buying a Home

How Much House Can I Afford on a $100K Salary? (Real 2026 Math)

Six figures feels like a lot — until you see what 7% mortgage rates do to it. Here is the honest math, with a table for other salaries too.

By Keys & Coffee Editorial Team · Updated · 3 min read

The short answerWith a $100,000 salary, no other debts and mortgage rates around 7.25%, a comfortable price is roughly $295,000 with 10% down or $345,000 with 20% down. Lenders may approve you for more. “Approved” and “comfortable” are not the same thing.

Let’s do this like friends splitting a coffee bill: simple numbers, no fancy formulas on screen. (The formulas are hiding inside our affordability calculator if you want to play.)

Step 1: Your monthly housing budget

$100,000 a year is about $8,333 a month before taxes. The classic 28% rule says your total housing payment — mortgage, property tax, insurance and any mortgage insurance — should stay under 28% of that.

$8,333 × 28% = about $2,333 a month.

There is a second check, the 36% rule: all your debts together (house + car + student loans + cards) under 36% of income, which is $3,000. If you already pay $700 a month in other debts, your housing budget shrinks to $2,300.

Step 2: Turn $2,333 into a home price

We assumed a 30-year fixed loan at 7.25%, property tax plus insurance of about 1.6% of the home value per year, and PMI of about 0.6% a year when you put down less than 20%. Here is what fits:

Down payment Comfortable home price Cash needed for down payment
10% about $295,000 about $29,500
20% about $344,000 about $68,800

Do not forget closing costs on top, often 2% to 5% of the loan. Our closing cost estimator gives you a range.

Fun factEvery 1% drop in mortgage rates adds roughly $24,000 to the price you can afford on this salary (10% down). At 6.25% the same budget stretches to about $319,000.

Other salaries at a glance

Salary Max housing payment (28%) Home price, 10% down Home price, 20% down
$60,000 $1,400 ~$177,000 ~$206,000
$80,000 $1,867 ~$236,000 ~$275,000
$100,000 $2,333 ~$295,000 ~$344,000
$120,000 $2,800 ~$353,000 ~$412,000
$150,000 $3,500 ~$442,000 ~$515,000

Assumes no other debts, 7.25% 30-year fixed rate, taxes and insurance about 1.6% of value per year, PMI about 0.6% per year under 20% down. Your area’s taxes and insurance can move these numbers a lot.

“But the lender said I could borrow way more!”

Lenders often allow total debt up to 43% to 50% of income. On $100,000, that could mean a housing payment of $3,500 or more. The bank is checking whether you are likely to pay them back. It is not checking whether you can also afford groceries, a new water heater, retirement savings and the occasional vacation.

Myth buster“Rent is $2,300, so a $2,300 mortgage is the same.” Owners also pay for repairs. A common rule is to save 1% of the home’s value a year for maintenance — about $250 a month on a $300,000 home.

5 ways to afford more (without being house-poor)

  1. Pay off a car loan or credit card before applying. Lower debts mean a bigger housing budget under the 36% rule.
  2. Raise your credit score. A better score can mean a lower rate, and a lower rate means more house per dollar.
  3. Look at FHA, VA or USDA loans if you qualify. Read our FHA requirements guide.
  4. Check down payment assistance programs from your state housing finance agency.
  5. Shop three lenders. Even a small rate difference changes your budget.

FAQ

Is the 28% rule based on gross or take-home pay?

Gross (before-tax) income. Since take-home pay is lower, also check that the payment feels okay against what actually lands in your bank account.

Can two incomes of $50k each afford the same as one $100k?

Usually yes, since lenders combine household income. But both borrowers’ debts and credit scores count too.

Does a bigger down payment always help?

It lowers your monthly payment and can remove PMI at 20%. Just keep an emergency fund after closing — draining every dollar into the down payment is risky.

Run your exact numbers in the affordability calculator, then check a specific home with the mortgage payment calculator.

Keys & Coffee Editorial Team

We turn lender-speak into plain English. We check our numbers against official sources like the CFPB, HUD, Fannie Mae and Freddie Mac, and we update guides when the rules change.

Keys & Coffee is an independent education site. We are not a lender or mortgage broker, we do not take loan applications or payments, and nothing here is financial advice. This site is not affiliated with Axia Home Loans, Axia Financial, LLC, or Planet Home Lending. Rates and rules change often — always confirm details with a licensed loan officer and check any lender on the NMLS Consumer Access site.

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