Short answer: on a $100,000 salary, a common guideline puts your maximum home price at about $311,782 in 2026 — assuming a 20% down payment, a 30-year fixed mortgage at the November 2026 average rate of 7.18%, and no other large monthly debts.
Current as of November 2026; rates change weekly.
What “Afford” Really Means
Affording a house is about the monthly payment, not just the listing price. That payment covers principal and interest, plus property taxes, homeowners insurance, and — if they apply — mortgage insurance and HOA dues.
Two buyers on the same salary can afford very different homes if one carries car and student loans and the other has no debt.
The 28/36 Rule
The 28/36 rule sets two limits; the lower one caps your budget.
1. The 28% rule: your housing payment
Your total monthly housing payment should be no more than 28% of your gross monthly income — your pay before tax. On $100,000 a year, gross monthly income is $8,333, so 28% is $2,333 a month.
2. The 36% rule: all your debts together
All monthly debt payments combined — housing plus car loans, student loans, credit card minimums, and other debts — should be no more than 36% of your gross monthly income. On $100,000, that is $3,000 a month, so with a $2,333 housing payment, $667 is left for other debt.
The Consumer Financial Protection Bureau (CFPB) defines debt-to-income ratio (DTI) the same way, and lenders use DTI to test whether you will still have room for savings and surprises.
The 28/36 rule is a guideline, not a law — some lenders approve up to 45% or even 50% total DTI. But staying within 28/36 leaves more room in your budget.
Mortgage Rates in November 2026
Your rate has a big effect on what you can afford: a higher rate means a higher payment for the same home price.
Freddie Mac’s Primary Mortgage Market Survey, released November 5, 2026, put the average 30-year fixed-rate mortgage at 7.18%, down from 7.24% the week before — the third weekly fall in a row — but still above the 6.22% average a year earlier. The 15-year fixed averaged 6.57%.
That is a national average for conventional, conforming loans for borrowers with 20% down and excellent credit — not a quote. Your rate depends on your credit score, down payment, and lender, so compare quotes.
Worked Example: $100,000 Income = $311,782
Step 1: Housing budget. $100,000 ÷ 12 = $8,333 a month. 28% of that is $2,333 a month.
Step 2: Total-debt limit. 36% of $8,333 is $3,000 a month for all debts. Here we assume no other debts.
Step 3: The loan that fits. With 20% down on a $311,782 home, the down payment is $62,356 and the loan is $249,426. At 7.18% over 30 years, principal and interest come to about $1,690 a month.
Step 4: Taxes and insurance. Your budget is $2,333 and the loan payment is $1,690, leaving about $644 a month for property taxes and insurance.
- Income: $100,000 a year ($8,333 a month before tax)
- Max housing payment (28%): $2,333 a month
- Max total debt payment (36%): $3,000 a month
- Home price: $311,782 — down payment (20%): $62,356 — loan: $249,426
- Principal and interest at 7.18%, 30 years: about $1,690 a month
- Left for taxes and insurance: about $644 a month
Other debts change the answer: with $1,000 a month in other debts, the 36% rule caps housing at $2,000 a month, which lowers the maximum home price.
How Your Down Payment Changes the Answer
A bigger down payment means a smaller loan and a lower payment. On a $311,782 home: 20% down is $62,356, 10% down is $31,178, and 3% down is $9,353.
Below 20% down on a conventional loan, your lender will usually require private mortgage insurance (PMI), which adds to your monthly payment until you build enough equity.
Other Costs to Budget For
Property taxes, homeowners insurance, and HOA dues all count toward your housing payment and vary a lot by place — and they can add hundreds of dollars a month. A home that looks affordable on the loan alone may be unaffordable once taxes and insurance are added.
How to Afford More on the Same Income
- Pay down other debts. It frees room under the 36% rule and can improve your credit score.
- Save a bigger down payment. Less to borrow, and it can remove PMI.
- Improve your credit score. A lower rate means a lower payment on the same loan.
- Look at a cheaper area. Lower taxes can cut the monthly total.
Try the calculator: Want your own number? Enter your income, debts, down payment, and rate in our free Home Affordability Calculator for your maximum home price in seconds. Then use our free Mortgage Calculator to check the monthly payment on any price and rate.
FAQs: How Much House Can I Afford in 2026?
How much house can I afford on $100,000 a year?
With the 28/36 rule, 20% down, and the November 2026 average 30-year rate of 7.18%, a $100,000 salary supports about $311,782.
What is the 28/36 rule?
Your housing payment should be no more than 28% of gross monthly income, and all debt payments together should be no more than 36%.
What mortgage rate should I use in 2026?
Freddie Mac’s survey put the average 30-year fixed rate at 7.18% for the week ending November 5, 2026.
How much house can I afford with no down payment?
With no down payment, the whole price is borrowed, so the payment is higher and your maximum price is lower, and PMI may apply.
Does my credit score affect how much house I can afford?
Yes. Your score affects the rate a lender offers, and a lower rate means a lower payment — so the same income can afford more with a better score.
Is the 28/36 rule still used in 2026?
Yes, as a budgeting guideline. Lenders still check DTI closely, but many approve above 36% when other factors are strong.
Sources: Freddie Mac, Primary Mortgage Market Survey, November 5, 2026 (30-year 7.18%, 15-year 6.57%); Consumer Financial Protection Bureau.
Disclaimer: general information only, not financial or tax advice. Rates and rules change — talk to a professional before making a decision.