How Much House Can I Afford on $100,000 a Year?
On a $100,000 salary you can afford a home of about $291,129 with 10% down, a payment of $2,333 a month, under the conservative 28/36 rule. With 20% down it is about $339,523. This assumes a 7.40% 30-year rate (Freddie Mac average, October 15, 2026) and $400 a month of other debts.
The price by scenario
| Scenario | Home price | Payment | Down payment | Cash at closing |
|---|---|---|---|---|
| Conservative 28/36, 10% down | $291,129 | $2,333 | $29,113 | $37,847 |
| Conservative 28/36, 20% down | $339,523 | $2,333 | $67,905 | $78,090 |
| FHA-style 31/43, 3.5% down | $304,018 | $2,583 | $10,641 | $19,761 |
Payment = principal and interest, property tax, insurance and PMI. Cash at closing = down payment plus about 3% in closing costs. The FHA-style row uses the 31/43 benchmark and the same PMI rate as an approximation of FHA mortgage insurance.
What one point of interest changes
| 30-year rate | Home price (10% down) | Payment |
|---|---|---|
| 6.40% | $314,767 | $2,333 |
| 7.40% (current average) | $291,129 | $2,333 |
| 8.40% | $270,065 | $2,333 |
Where the $2,333 goes
| Principal and interest on $262,016 | $1,814 |
| Property tax (1.1% a year) | $267 |
| Homeowners insurance (0.5% a year) | $121 |
| Mortgage insurance (PMI, under 20% down) | $131 |
| Total monthly payment | $2,333 |
Lenders measure against gross income, but you pay from take-home pay. A single filer on $100,000 takes home about $6,598 a month after federal tax and FICA, so this payment is about 35.4% of it, before state tax, utilities and repairs. See the full breakdown in $100,000 a year after taxes.
How this is calculated
Gross monthly income is $100,000 ÷ 12 = $8,333. The housing payment may be at most 28% of it ($2,333), and housing plus other debts at most 36% of it, which leaves $2,600 for housing after $400 of other debts. The smaller limit, $2,333, is the budget. Your own debts, down payment, rate, taxes and HOA dues change the answer: enter them in the home affordability calculator. To see the mortgage payment of a specific price, use the mortgage calculator.
Frequently asked questions
How much house can I afford on a $100,000 salary?
Under the conservative 28/36 rule, about $291,129 with 10% down ($2,333 a month) or $339,523 with 20% down. With an FHA-style 31/43 limit and 3.5% down it is about $304,018. These figures assume a 7.40% 30-year rate, $400 a month of other debts, property tax of 1.1% and insurance of 0.5% a year.
Can I afford a $300,000 house on $100,000 a year?
Not under the conservative rule, which tops out near $291,129 with 10% down, but it is within reach with an FHA-style 31/43 limit and 3.5% down (about $304,018). That payment would be a larger share of your income, so check it against your take-home pay.
Does the 28% rule use gross or take-home income?
Gross income, before tax. On $100,000 that is $8,333 a month, so 28% is $2,333. Your take-home pay is lower, so the same payment is a bigger share of what you receive: $2,333 is about 35.4% of the roughly $6,598 a month a single filer takes home after federal tax and FICA, before any state tax.
What if mortgage rates fall by one point?
At 6.40% instead of 7.40%, the price you can afford with 10% down rises from about $291,129 to about $314,767, an increase of $23,638. At 8.40% it falls to about $270,065.
Other incomes
Planning estimates, not a loan offer. A lender also looks at your credit score, employment history and savings, and being approved for a payment does not mean it fits your budget.