A $75,000 salary opens up homeownership in the majority of US markets. Here’s exactly what you can afford.
Table of Contents
Quick Answer: $250,000 – $320,000
| Scenario | Down Payment | Max Home Price | Monthly Payment |
|---|---|---|---|
| Conservative (25% DTI) | 5% | $255,000 | $1,563 |
| Standard (28% DTI) | 5% | $290,000 | $1,750 |
| Standard (28% DTI) | 10% | $310,000 | $1,750 |
| Standard (28% DTI) | 20% | $350,000 | $1,750 |
| Aggressive (33% DTI) | 5% | $320,000 | $2,063 |
Assumes 6.5% interest rate, 30-year fixed, property tax 1.1%, homeowner’s insurance $150/month.
Monthly Payment Breakdown at $290K
| Component | 5% Down | 10% Down | 20% Down |
|---|---|---|---|
| Principal & interest | $1,741 | $1,650 | $1,466 |
| Property taxes | $266 | $266 | $266 |
| Homeowner’s insurance | $150 | $150 | $150 |
| PMI | $120 | $85 | $0 |
| Total monthly | $2,277 | $2,151 | $1,882 |
Note: $2,277 at 5% down exceeds the $1,750 max — this means with only 5% down, you’d need a lower-priced home (~$260K) or a lower interest rate.
Impact of Existing Debt
| Monthly Debt | Max Housing (36% back-end) | Max Home Price | Reduction |
|---|---|---|---|
| $0 | $1,750 | $290,000 | — |
| $300 (car) | $1,750 | $290,000 | $0* |
| $500 (car + loans) | $1,750 | $260,000 | -$30,000 |
| $800 (car + loans + cards) | $1,450 | $225,000 | -$65,000 |
*As long as total DTI stays under 36%, front-end DTI dominates.
State-by-State Affordability
| State | Median Home Price | Monthly Payment | Affordable? |
|---|---|---|---|
| West Virginia | $130,000 | $820 | ✅ Very easy |
| Mississippi | $145,000 | $915 | ✅ Very easy |
| Ohio | $195,000 | $1,231 | ✅ Comfortable |
| Indiana | $200,000 | $1,262 | ✅ Comfortable |
| Michigan | $215,000 | $1,357 | ✅ Yes |
| Texas | $265,000 | $1,672 | ✅ Yes |
| North Carolina | $290,000 | $1,830 | ⚠️ Borderline |
| Minnesota | $310,000 | $1,956 | ❌ Stretch |
| Florida | $350,000 | $2,209 | ❌ Over budget |
| Virginia | $370,000 | $2,335 | ❌ No |
| Colorado | $490,000 | $3,092 | ❌ No |
| New Jersey | $460,000 | $2,903 | ❌ No |
| California | $750,000 | $4,733 | ❌ No |
Key Takeaways
- $75K supports a home in the $250K-$320K range depending on debts and down payment
- You can afford the median home in ~25-30 states — most of the South, Midwest, and parts of the Mountain West
- A 20% down payment boosts your buying power by ~$60K vs. 5% down and eliminates PMI
- Existing debts matter — $800/month in car and student loan payments cuts $65K off your max home price
- Consider first-time buyer programs for down payment assistance in your state
