How Much House Can You Afford on an $80,000 Salary?
Updated August 23, 2026 · DollarCalcs
The standard answer starts with the 28/36 rule: keep your total housing payment under 28% of gross monthly income, and all debt payments combined under 36%. On $80,000 a year — $6,667 a month — that caps housing at $1,867 a month.
Housing payment means everything: principal, interest, property tax, insurance, and any HOA or PMI. Assuming about $550 a month for taxes and insurance, roughly $1,317 is left for principal and interest — which at 6.5% over 30 years supports a loan of about $208,311. Add your down payment to get your price range: with $40,000 down, that's a home around $248,311.
Debt shrinks the number fast
The 36% side of the rule is where most budgets actually bind. With $500 a month in car and student loan payments, your ceiling drops from $1,867 to $1,867 for housing — supporting a loan of only about $208,311. Same income, $0 less house. Paying off a car loan before applying can raise your budget more than a year of saving.
Lenders will often approve more than the 28/36 rule suggests — up to 43–50% debt-to-income on some loans. Qualifying for a payment and living comfortably with it are different things; the gap is your margin for savings, repairs and life.
Rate sensitivity: why half a point matters
At $1,317 a month for principal and interest, a 6.5% rate supports about $208,311 of loan. At 6.0% the same payment supports $219,609; at 7.0%, $197,905. Rate shopping among several lenders routinely moves your buying power by tens of thousands of dollars.
Run your own numbers
Use the mortgage calculator to test a full payment with your local property taxes, then the amortization calculator to see how extra payments change the long-term cost. And confirm your real monthly income first with your state's paycheck calculator — affordability rules use gross income, but your budget lives on net.
Do the math yourself
Frequently asked questions
+What house price can I afford on $80K with no debt?
Using the 28% rule at 6.5% with 10% down and ~$550/mo taxes and insurance: a loan around $208,311, so a price near $231,457. More down payment raises the price directly.
+How much do I need for a down payment?
Conventional loans allow as little as 3–5% down (with PMI until 20% equity); FHA allows 3.5%. On a $280,000 home, 5% is $14,000 plus closing costs of roughly 2–5%. Putting 20% down avoids PMI but isn't required.
+Should I use gross or net income for the 28% rule?
The rule and your lender both use gross (pre-tax) income. But sanity-check the payment against your actual take-home — a payment that's 28% of gross is usually 35–40% of net.