How Much House Can I Afford on a $100,000 Salary?
A $100,000 salary is about $8,333/month before taxes. The honest answer to how much house that buys is a range, not a single number, because it depends on your other debts, your down payment, and the rate on the day you lock.
Start with the 28/36 rule
- 28% (front-end): housing payment ≤ 28% of gross monthly income.
- 36% (back-end): total debt (housing + car + student + card minimums) ≤ 36%.
On $8,333/month: 28% housing cap = $2,333; 36% total-debt cap = $3,000. See 28/36 DTI rule.
What the $2,333 covers
The 28% cap is full PITI — Principal, Interest, Taxes, Insurance (+ PMI if under 20% down). Taxes/insurance/PMI often eat 20–30% of the housing budget, leaving roughly $1,650–$1,850 for principal and interest.
Worked example: payment → price
Illustrative rate: as of June 2026 the 30-year fixed averaged 6.47% (Freddie Mac PMMS, wk of Jun 18 2026). At 6.47%, ~$1,750/month of P&I supports a loan of roughly $278,000.
| Down payment | Loan | Approx. price |
|---|---|---|
| 3% | ~$278,000 | ~$287,000 |
| 10% | ~$278,000 | ~$309,000 |
| 20% | ~$278,000 | ~$348,000 |
A larger down payment lifts the price for the same payment, and at 20% you drop PMI, freeing more of the cap. See down payment guide.
How the rate changes everything
| Rate | Loan from $1,750/mo P&I |
|---|---|
| 5.5% | ~$308,000 |
| 6.0% | ~$292,000 |
| 6.47% (Jun 2026 anchor) | ~$278,000 |
| 7.0% | ~$263,000 |
A one-point rate move shifts borrowing power ~$40,000–$45,000. Run your own in the affordability calculator.
How existing debt shrinks the number
Total-debt limit $3,000. With $400 car + $150 card = $550 debts → $2,450 left, but the 28% rule still caps housing at $2,333. With $600 car + $400 student + $200 cards = $1,200 → housing capped at $1,800, ~$530/month less — tens of thousands less house. Paying down debt before applying directly raises your number.
A realistic range on $100,000
With modest debt and average taxes, roughly $290,000–$350,000, depending heavily on down payment, rate, and debt. Little debt + 20% down stretches higher; car + student debt lands lower. This is a planning range, not a pre-approval. Weighing programs? See FHA vs conventional.
Frequently Asked Questions
How much on $100k?
Roughly $290k–$350k with moderate debt and typical rates (28/36 rule).
What is the 28/36 rule?
Housing ≤28%, total debt ≤36% of gross income — ~$2,333 and $3,000 on $100k.
Does down payment change affordability?
Yes — bigger down payment raises price for the same payment and removes PMI at 20%.
How much does the rate matter?
A lot — a 1-point change shifts power ~$40k–$45k.
CTA: Run the affordability calculator with your real numbers.
Sources: Freddie Mac PMMS (wk Jun 18 2026, volatile); 28/36 underwriting guideline (CFPB-referenced).