On $150,000 combined household income, you can typically afford a $450,000-$600,000 house. Here’s the breakdown.
Quick Answer
| Conservative (28% rule) | Moderate | Aggressive |
|---|---|---|
| $450,000 | $525,000 | $600,000 |
Assumes 6.5% interest rate, 20% down payment, typical taxes/insurance
Maximum Monthly Housing Payment
| Rule | Calculation | Max Monthly PITI |
|---|---|---|
| 28% front-end ratio | $150,000 × 0.28 ÷ 12 | $3,500 |
| Conservative (25%) | $150,000 × 0.25 ÷ 12 | $3,125 |
House Price by Down Payment
With a $3,500/month PITI budget:
| Down Payment | Home Price | Loan Amount | P&I Payment |
|---|---|---|---|
| 5% ($27,500) | $550,000 | $522,500 | $3,302 |
| 10% ($55,000) | $550,000 | $495,000 | $3,128 |
| 20% ($110,000) | $550,000 | $440,000 | $2,781 |
| 20% ($120,000) | $600,000 | $480,000 | $3,033 |
6.5% interest, 30-year fixed
Full Monthly Payment Breakdown
On a $500,000 house with 20% down:
| Component | Amount |
|---|---|
| Principal & Interest | $2,528 |
| Property Tax | $520 |
| Homeowners Insurance | $300 |
| PMI (if < 20% down) | $0 |
| Total PITI | $3,348 |
That’s 27% of gross income — just under the 28% limit.
How Other Debts Affect Affordability
| Existing Debts | Max Housing | Home Price Impact |
|---|---|---|
| $0/month | $3,500 | $550,000+ |
| $400/month (car) | $3,100 | $490,000 |
| $700/month (cars + loans) | $2,800 | $430,000 |
Dual Income Safety Check
Before maxing out:
- Can one income cover mortgage? If not, build 6+ months emergency fund
- What if one person loses their job? Stress test your budget
- Are you saving for retirement? Don’t sacrifice 401(k) for house
Where $150K Combined Income Fits
| City | Median Home Price | Affordable on $150K? |
|---|---|---|
| Columbus, OH | $285,000 | ✅ Very comfortable |
| Dallas, TX | $380,000 | ✅ Comfortable |
| Denver, CO | $575,000 | ⚠️ At budget |
| Boston, MA | $800,000 | ❌ Stretching |
