How much income do you need to afford a home? The answer depends on the price of the house, your down payment, and current mortgage rates. Use our guides below to find the income required for any home price.
Income Needed by Home Price
The table below shows the minimum income required to afford homes at different price points. These calculations assume a 20% down payment, a 6.5% mortgage rate on a 30-year fixed loan, and include estimated property taxes and insurance. The income figure is based on spending no more than 30% of gross income on housing costs.
| Home Price | Down Payment | Monthly PITI | Income Needed | Guide |
|---|---|---|---|---|
| $250,000 | $50,000 | $1,566 | $62,600 | View details |
| $300,000 | $60,000 | $1,879 | $75,200 | View details |
| $350,000 | $70,000 | $2,193 | $87,700 | View details |
| $400,000 | $80,000 | $2,506 | $100,200 | View details |
| $450,000 | $90,000 | $2,819 | $112,800 | View details |
| $500,000 | $100,000 | $3,132 | $125,300 | View details |
| $550,000 | $110,000 | $3,446 | $137,800 | View details |
| $600,000 | $120,000 | $3,759 | $150,400 | View details |
| $650,000 | $130,000 | $4,072 | $162,900 | View details |
| $700,000 | $140,000 | $4,385 | $175,400 | View details |
| $750,000 | $150,000 | $4,699 | $187,900 | View details |
| $800,000 | $160,000 | $5,012 | $200,500 | View details |
| $900,000 | $180,000 | $5,638 | $225,500 | View details |
| $1,000,000 | $200,000 | $6,265 | $250,600 | View details |
Use our calculator to get a personalized estimate for any home price.
The 28/36 Rule Explained
Most mortgage lenders use the 28/36 rule to determine how much you can borrow:
- 28% Rule: Your total monthly housing costs (mortgage principal, interest, taxes, and insurance) should not exceed 28% of your gross monthly income.
- 36% Rule: Your total monthly debt payments (housing costs plus car loans, student loans, credit cards, etc.) should not exceed 36% of your gross monthly income.
Our calculations use a slightly more conservative 30% DTI for housing costs, which gives you a buffer for other expenses.
How Mortgage Rates Affect Affordability
Even small changes in mortgage rates significantly impact the income required:
| Rate | Income for $400K Home | Income for $500K Home | Income for $600K Home |
|---|---|---|---|
| 5.0% | $88,100 | $110,100 | $132,100 |
| 5.5% | $92,000 | $115,000 | $138,000 |
| 6.0% | $96,100 | $120,100 | $144,100 |
| 6.5% | $100,200 | $125,300 | $150,400 |
| 7.0% | $104,500 | $130,600 | $156,700 |
| 7.5% | $108,800 | $136,000 | $163,200 |
| 8.0% | $113,300 | $141,600 | $169,900 |
A 1% increase in mortgage rates requires roughly $10,000–$13,000 more in annual income to afford the same home.
How Down Payment Affects Income Requirements
A larger down payment reduces the income needed to qualify:
| Down Payment | Income for $400K Home | Income for $500K Home |
|---|---|---|
| 5% | $121,600 | $152,000 |
| 10% | $116,700 | $145,900 |
| 15% | $111,700 | $139,600 |
| 20% | $100,200 | $125,300 |
Note: Down payments below 20% typically require private mortgage insurance (PMI), which adds $100–$300/month to your payment.
Median Home Price vs. Median Income
As of early 2026, the national median home price is around $360,000, which requires approximately $90,400 in annual income to afford.
The median household income in the United States is approximately $80,600.
This means the typical American household cannot afford the typical American home under standard lending guidelines — a gap that has widened significantly since 2020.
