Real Estate

House Affordability Calculator

Find out how much house you can afford based on your income, debts, and the 28% DTI rule.

Quick Answer:With a $75,000 annual income and 20% down payment in 2026, you can afford approximately a $310,000 home using the 28% DTI guideline at current 6.5% mortgage rates.

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Down Payment (%)

Interest Rate (%)

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Calculating... based on 28% DTI

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DTI Ratio

Recommended Price (25%)

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Max Price (28% DTI)--

Recommended (25% DTI)--

Expert Insight 2026 Pro Tip

Just because a lender approves you for a certain amount doesn't mean you should borrow that much. In 2026, with mortgage rates around 6.5%, the gap between the 28% and 25% DTI rules translates to roughly $30,000-50,000 in home price. Financial advisors increasingly recommend the conservative 25% rule to maintain flexibility for retirement savings, emergency funds, and lifestyle costs. Remember that property taxes, insurance, and maintenance can add 25-35% on top of your mortgage payment, so always budget for total housing costs rather than just the mortgage amount.

Frequently Asked Questions

How much house can I afford with a $75,000 salary in 2026?

With a $75,000 annual income, 20% down payment, and current 6.5% mortgage rates in 2026, you can typically afford a home around $310,000 using the 28% DTI guideline. This assumes minimal existing debt. Your maximum monthly housing payment would be approximately $1,750, covering principal, interest, taxes, and insurance. If you have significant monthly debts like car payments or student loans, your affordable price will be lower. Using the more conservative 25% rule, your target home price drops to approximately $275,000, leaving more room in your monthly budget.

What is the 28% DTI rule for home affordability?

The 28% DTI (debt-to-income) rule states that your monthly housing expenses should not exceed 28% of your gross monthly income. This includes mortgage principal, interest, property taxes, and homeowner's insurance (PITI). For example, if you earn $6,250 per month gross, your maximum housing payment should be $1,750. Lenders also look at your total DTI ratio including all debts, which should generally stay below 36% for conventional loans. Some government-backed loans like FHA allow higher ratios, but stretching your budget too thin increases financial risk substantially.

Should I use the 28% or 25% rule for buying a home?

The 28% rule represents the maximum most lenders will approve, while the 25% rule is a more conservative guideline recommended by many financial advisors. Using the 25% rule gives you more breathing room in your budget for savings, emergencies, and lifestyle expenses. In 2026, with higher interest rates compared to previous years, many financial planners recommend the 25% rule to avoid becoming house-poor. The right choice depends on your complete financial picture including your savings rate, retirement contributions, emergency fund status, and other financial goals you want to maintain.