How much house can I afford on $80,000 a year?
- Principal & interest
- $1,517
- Property tax & insurance (est.)
- $363
- Loan amount
- $240,000
- Total interest over 30 years
- $306,107
Affordable home price by interest rate
| Rate (30-yr fixed) | Home price | Loan amount | Principal & interest |
|---|---|---|---|
| 5.00% | $339,000 | $271,000 | $1,457 |
| 5.50% | $325,000 | $260,000 | $1,474 |
| 6.00% | $311,000 | $249,000 | $1,491 |
| 6.50% | $298,000 | $238,000 | $1,507 |
| 7.00% | $286,000 | $229,000 | $1,521 |
| 7.50% | $274,000 | $220,000 | $1,535 |
| 8.00% | $264,000 | $211,000 | $1,548 |
Affordable home price with other monthly debts
| Other debts / month | Home price at 6.5% |
|---|---|
| $0 | $298,000 |
| $300 | $298,000 |
| $500 | $298,000 |
| $800 | $255,000 |
| $1,200 | $192,000 |
Frequently asked questions
How much house can I afford making $80,000 a year?
About $298,000, assuming 20% down ($60,000), a 30-year fixed rate of 6.5% and no other debts. That keeps your total housing payment near $1,867 per month, 28% of your $6,667 gross monthly income.
What mortgage payment can I afford on $80k?
Lenders typically cap housing costs (principal, interest, taxes and insurance) at 28% of gross income — $1,867 per month — and all debts combined at 36%, or $2,400 per month.
How do car loans or student debt change this?
Every dollar of monthly debt above $533 reduces your housing budget dollar-for-dollar under the 36% rule. With $800/month of other debt you could afford about $255,000.
Related
Assumes 20% down (no PMI), 1.1% property tax and 0.35% insurance per year, and the 28/36 debt-to-income guideline. Lenders also weigh credit score, reserves and loan type. Educational estimate, not financial advice. Methodology.