Know the home price you’re targeting? This hub works backward — from home price to the income you need. Every guide below includes 10% and 20% down scenarios, current-rate payment breakdowns, and income requirements.
Income Required by Home Price (2026 Rates)
At a 7.40% rate (Freddie Mac 30-year average, week of October 8, 2026), 30-year fixed, including estimated property taxes and insurance:
| Home Price | 20% Down | Loan Amount | Monthly Payment | Income Needed (28%) |
|---|---|---|---|---|
| $200,000 | $40,000 | $160,000 | ~$1,370 | ~$59,000 |
| $250,000 | $50,000 | $200,000 | ~$1,720 | ~$74,000 |
| $300,000 | $60,000 | $240,000 | ~$2,060 | ~$88,000 |
| $350,000 | $70,000 | $280,000 | ~$2,410 | ~$103,000 |
| $400,000 | $80,000 | $320,000 | ~$2,750 | ~$118,000 |
| $450,000 | $90,000 | $360,000 | ~$3,090 | ~$133,000 |
| $500,000 | $100,000 | $400,000 | ~$3,440 | ~$147,000 |
| $600,000 | $120,000 | $480,000 | ~$4,120 | ~$177,000 |
| $700,000 | $140,000 | $560,000 | ~$4,810 | ~$206,000 |
| $750,000 | $150,000 | $600,000 | ~$5,150 | ~$221,000 |
| $800,000 | $160,000 | $640,000 | ~$5,500 | ~$236,000 |
| $900,000 | $180,000 | $720,000 | ~$6,190 | ~$265,000 |
| $1,000,000 | $200,000 | $800,000 | ~$6,870 | ~$295,000 |
Monthly payment is principal and interest plus estimated property tax (1.1% of price a year) and homeowners insurance (0.5% of price a year). PMI not included (assumes 20% down). Income needed is the monthly payment divided by 28%.
With 10% Down: How PMI Changes the Numbers
With 10% down, you borrow more and pay PMI (assumed 0.7% of the loan amount a year; actual PMI depends on credit score and loan size), at the same 7.40% rate:
| Home Price | 10% Down | Loan Amount | PMI/month | Total Monthly | Income Needed (28%) |
|---|---|---|---|---|---|
| $300,000 | $30,000 | $270,000 | ~$158 | ~$2,430 | ~$104,000 |
| $400,000 | $40,000 | $360,000 | ~$210 | ~$3,240 | ~$139,000 |
| $500,000 | $50,000 | $450,000 | ~$262 | ~$4,050 | ~$173,000 |
| $600,000 | $60,000 | $540,000 | ~$315 | ~$4,850 | ~$208,000 |
PMI drops off once you reach 20% equity — typically after 5–8 years depending on appreciation and extra payments.
What Counts as “Income” to a Lender
Lenders accept multiple income sources:
- W-2 wages — 2 years of consistent employment preferred
- Self-employment income — 2-year average from tax returns (Schedule C/K-1), net of business expenses
- Rental income — typically 75% of gross rent (to account for vacancies)
- Investment/retirement income — dividend income, distributions, pension payments
- Child support / alimony — counted if documented and likely to continue 3+ years
If your qualifying income is below the threshold for your target price, the most effective levers are: larger down payment (reduces loan amount), lower debt-to-income ratio (pay off debts), or co-borrower with additional income.
Price-Specific Income Guides
- Income Needed for a $200K House
- Income Needed for a $300K House
- Income Needed for a $350K House
- Income Needed for a $400K House
- Income Needed for a $500K House
- Income Needed for a $1 Million House
Related Hubs
- Affordability by Salary — how much house you can buy on your income
- Affordability by City & State — what these prices look like in your market
- Home Affordability Guide — full 28/36 rule and down payment analysis
- Monthly Payments Hub — exact payment for any loan amount
- Mortgages Hub — complete mortgage guide
The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy