How Much House Can I Afford on an $80,000 Salary?
A realistic breakdown of the home price an $80,000 income supports, using the 28/36 rule, today's rates, and real property taxes.
The short answer
On an 6,667/month), most lenders will approve you for a home priced roughly 320,000 — depending on your down payment, existing debts, and current mortgage rates. What you can comfortably afford is usually 10–15% lower than what a lender will approve.
The 28/36 rule in plain English
Banks use two limits:
- 28% front-end DTI — Your monthly housing payment (principal, interest, taxes, insurance, HOA) shouldn't exceed 28% of gross monthly income.
- 36% back-end DTI — Housing plus all other debts (car, student loans, credit cards) shouldn't exceed 36%.
For $80K:
- Max housing = 1,867/month**
- Max housing + other debts = 2,400/month**
Worked example at today's rates
Assume 6.5% on a 30-year fixed, 250/mo car payment, 1.2% property tax, $1,500/yr insurance:
| Home price | Loan | Monthly PITI | Fits 28%? |
|---|---|---|---|
| $260,000 | $220,000 | ~$1,780 | Yes |
| $300,000 | $260,000 | ~$2,050 | Tight |
| $340,000 | $300,000 | ~$2,320 | No |
At 300K and you're right at the edge — one car repair away from stress.
What actually moves the number
Four levers change the answer more than income does:
- Down payment. Bumping from 5% to 20% eliminates PMI (~$150/mo saved) and shrinks the loan.
- Interest rate. Every 1% drop lifts your buying power ~10%.
- Existing debts. Every 30K in price.
- Property tax rate. Texas (2.1%) supports much less house than California (0.7%) at the same income.
Run your own numbers
Every household is different. Use the mortgage affordability calculator with your actual rate, taxes, and debts to get a personalized number. Then check the mortgage payment calculator to see what the monthly cost looks like.