Wondering how much house you can afford on a $100K salary? This guide breaks down everything you need to know — from income ratios and down payments to credit scores and hidden costs—so you can confidently estimate your home-buying budget and plan for a smart, sustainable purchase.
How Much House Can I Afford With a $100K Salary?
Buying a home is one of the biggest financial decisions you’ll ever make. If you’re earning $100,000 a year, you might be wondering: How much house can I realistically afford? While your income gives you a solid foundation, home affordability isn’t just about your salary. It’s a mix of several factors—like your debt, credit score, down payment, and local market conditions.
Quick Answer:
If you make $100,000 annually, you can typically afford a home priced between $400,000 and $600,000, assuming:
- A 20% down payment
- A good credit score
- Limited or no major debts
- A mortgage rate around 5% or lower
But let’s go deeper.
1. Income vs. Mortgage: The 28/36 Rule
Lenders often use the 28/36 rule to determine what you can afford:
- 28% of your gross monthly income should go toward your mortgage (principal, interest, taxes, and insurance).
- 36% is the cap for all monthly debts combined (mortgage + car loans, student loans, credit cards, etc.).
Example:
- Monthly gross income: $100,000 / 12 = $8,333
- 28% of $8,333 = $2,333/month available for your housing payment
2. Down Payment Matters
The more you can put down, the more house you can afford—and the less you’ll owe long term. A typical down payment is:
- 20% for conventional loans (avoids private mortgage insurance)
- 3–5% for FHA or other low-down-payment options
Scenario:
If you’ve saved $100,000 for a down payment:
- 20% of $500,000 = $100,000
- So, you could afford a $500,000 home with 20% down
3. Credit Score & Interest Rate
Your credit score impacts your interest rate. A better rate = lower monthly payments = higher buying power.
| Credit Score | Estimated Interest Rate (30-Year Fixed) |
|---|---|
| 760+ | 5.0% or lower |
| 700–759 | 5.5–6.0% |
| 620–699 | 6.0–7.0% |
Even a 1% difference in rates can change how much house you can afford by tens of thousands of dollars.
4. Other Expenses to Consider
Homeownership isn’t just about the mortgage. Here are other key costs to budget for:
- Property Taxes: Varies by state, usually 1–2% of the home’s value annually
- Home Insurance: ~$1,000–$2,000 per year
- HOA Fees: Can range from $100–$500/month (if applicable)
- Utilities & Maintenance: Rule of thumb is 1% of home value annually for maintenance
5. Debt Load: Don’t Overextend
Let’s say you have no debt. That gives you more flexibility in your housing budget. But if you’re paying off:
- $400/month in student loans
- $300/month in car payments
Your total monthly debt = $700, and you’ll need to subtract that from the 36% cap lenders use. That would reduce how much you can spend on your mortgage.
6. What If You Earn More or Less?
| Salary | Approx. Home Price Range |
|---|---|
| $45,000/year | $150K–$220K |
| $70,000/year | $250K–$350K |
| $90,000/year | $350K–$500K |
| $120,000/year | $500K–$700K |
| $150,000/year | $600K–$900K |
7. Try a Mortgage Calculator
Want exact numbers? Use a mortgage calculator and plug in:
- Your salary
- Down payment amount
- Estimated property taxes
- Interest rate
- Monthly debts
This will give you a better picture of your ideal price range and monthly payments.
Final Thoughts
Making $100K a year puts you in a strong position to buy a home, but your true affordability depends on more than your income. With a good down payment, solid credit, and minimal debt, you could comfortably afford a home in the $500K–$600K range.
But always run the numbers and don’t feel pressured to max out your budget. Homeownership is more than a monthly payment—it’s about long-term sustainability and financial peace of mind.
