How Much House Can I Afford on $200,000 a Year?
On a $200,000 salary you can afford a home of about $582,259 with 10% down, a payment of $4,667 a month, under the conservative 28/36 rule. With 20% down it is about $679,047. 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 | $582,259 | $4,667 | $58,226 | $75,694 |
| Conservative 28/36, 20% down | $679,047 | $4,667 | $135,809 | $156,181 |
| FHA-style 31/43, 3.5% down | $608,036 | $5,167 | $21,281 | $39,522 |
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% | $629,534 | $4,667 |
| 7.40% (current average) | $582,259 | $4,667 |
| 8.40% | $540,131 | $4,667 |
Where the $4,667 goes
| Principal and interest on $524,033 | $3,628 |
| Property tax (1.1% a year) | $534 |
| Homeowners insurance (0.5% a year) | $243 |
| Mortgage insurance (PMI, under 20% down) | $262 |
| Total monthly payment | $4,667 |
Lenders measure against gross income, but you pay from take-home pay. A single filer on $200,000 takes home about $12,411 a month after federal tax and FICA, so this payment is about 37.6% of it, before state tax, utilities and repairs. See the full breakdown in $200,000 a year after taxes.
How this is calculated
Gross monthly income is $200,000 ÷ 12 = $16,667. The housing payment may be at most 28% of it ($4,667), and housing plus other debts at most 36% of it, which leaves $5,600 for housing after $400 of other debts. The smaller limit, $4,667, 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 $200,000 salary?
Under the conservative 28/36 rule, about $582,259 with 10% down ($4,667 a month) or $679,047 with 20% down. With an FHA-style 31/43 limit and 3.5% down it is about $608,036. 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 $600,000 house on $200,000 a year?
Not under the conservative rule, which tops out near $582,259 with 10% down, but it is within reach with an FHA-style 31/43 limit and 3.5% down (about $608,036). 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 $200,000 that is $16,667 a month, so 28% is $4,667. Your take-home pay is lower, so the same payment is a bigger share of what you receive: $4,667 is about 37.6% of the roughly $12,411 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 $582,259 to about $629,534, an increase of $47,275. At 8.40% it falls to about $540,131.
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.