What is the 28/36 rule?

The 28/36 rule is a common lending guideline: your total monthly housing payment should not exceed 28% of gross monthly income, and your total monthly debt payments (housing plus car loans, student loans, and credit cards) should not exceed 36%. Lenders use debt-to-income ratios like these to assess mortgage applications.

How much of a down payment do I need on a $100,000 salary?

There is no fixed requirement tied to salary. Conventional loans often allow as little as 3% down, and FHA loans 3.5%, but putting down less than 20% usually adds private mortgage insurance (PMI). A larger down payment lowers your monthly payment and the total interest you pay.

How Much House Can I Afford on a $100,000 Salary?

Q: How much house can I afford on a $100,000 salary?

Under the 28/36 rule, a $100,000 salary (about $8,333/month gross) supports a maximum housing payment of roughly $2,333/month including principal, interest, taxes, and insurance. Depending on the mortgage rate, down payment, and your other debts, that typically translates to a home price in the range of about $300,000 to $400,000.

A $100,000 salary works out to about $8,333 in gross income each month. Under the lending guideline most banks use, that supports a maximum housing payment of roughly $2,333/month — which, depending on rates and your down payment, usually means a home in the $300,000–$400,000 range. Here's exactly how that number is built, and the factors that move it up or down.

Start With the 28/36 Rule

Lenders don't decide what you can afford by feel — they use debt-to-income (DTI) ratios. The most common benchmark is the 28/36 rule, a guideline referenced by the Consumer Financial Protection Bureau and used across the mortgage industry:

28% — the housing (front-end) ratio. Your total monthly housing payment — principal, interest, property taxes, and insurance (together called PITI) — should stay at or below 28% of your gross monthly income.
36% — the total-debt (back-end) ratio. All of your monthly debt payments combined — housing plus car loans, student loans, and minimum credit-card payments — should stay at or below 36%.

The $100k math

$100,000 ÷ 12 = $8,333 gross per month. 28% of $8,333 = $2,333 maximum housing payment. 36% = $3,000 maximum for all debts combined — so if you already pay $500/month on a car and student loans, your housing budget drops toward $2,500 to stay inside the back-end limit.

From Monthly Payment to Home Price

A $2,333 housing payment is not your loan payment — it has to also cover property taxes, homeowners insurance, and (if you put down less than 20%) private mortgage insurance. A reasonable rule of thumb is that taxes and insurance eat 15–25% of the payment, leaving roughly $1,750–$1,950 for principal and interest.

What that buys depends heavily on the mortgage rate, which changes constantly. The illustration below assumes a 20% down payment and a 30-year fixed loan. Treat these as directional — run your own numbers with today's rate in the calculator.

Illustrative max home price on a $100k salary (20% down, 30-yr fixed)

Mortgage rate	Approx. loan supported	With 20% down → home price
6.0%	~$300,000	~$375,000
7.0%	~$270,000	~$340,000
8.0%	~$245,000	~$305,000

The takeaway: at higher rates the same salary buys meaningfully less house. This is why the payment — not the sticker price — is the number that actually governs affordability.

Five Things That Move Your Number

Down payment. More cash down means a smaller loan and lower monthly payment — and clearing 20% removes PMI entirely. Conventional loans can allow as little as 3% down and FHA loans 3.5%, but a smaller down payment raises the payment and total interest.
Existing debt. The 36% back-end limit is where car payments and student loans quietly shrink your housing budget. Paying down a car loan before applying can raise your approval.
Interest rate & credit score. A stronger credit score earns a lower rate, and as the table shows, even one percentage point changes your buying power by tens of thousands of dollars.
Property taxes & insurance. These vary widely by location. A high-tax area can cut the home price your payment supports by 10–20% versus a low-tax one.
Loan term. A 30-year loan has a lower monthly payment (more house) than a 15-year loan, but you pay far more interest over time.

Run Your Real Numbers

Enter your salary, down payment, debts, and today's rate to see your personalized max home price, monthly payment, and DTI.

Use the Home Affordability Calculator →

Is $100,000 a Good Salary to Buy a House?

In most of the country, yes — a $100,000 household income comfortably supports a median-priced home. In the most expensive metros it's tighter, and you may need a larger down payment or a co-borrower to hit the same 28/36 targets. The rule scales cleanly: on an $80,000 salary your housing ceiling is about $1,867/month; on $120,000 it's about $2,800.

Also check your take-home pay, not just gross. The 28/36 rule uses gross income, but your actual budget lives after taxes — our salary & tax calculator shows what actually lands in your account.

Sources

This guide is built on standard, published lending guidelines. Primary sources:

Consumer Financial Protection Bureau (CFPB) — debt-to-income ratios and the 28/36 guideline. consumerfinance.gov
Freddie Mac — Primary Mortgage Market Survey (benchmark mortgage rates). freddiemac.com/pmms
Fannie Mae & FHA — conventional and FHA down-payment and PMI guidelines. fanniemae.com

Estimates are illustrative and for educational purposes only — not financial advice. Rates and rules change; confirm current figures with a licensed lender.