Find out how much house you can afford, including taxes, insurance and PMI.
Enter your income, monthly debts and down payment and the calculator works out the home price whose full monthly payment fits the standard lending limits. Unlike calculators that count only principal and interest, this one includes property taxes, homeowners insurance, HOA dues and PMI, so the price it gives you is one a lender would actually approve. Pick your state to use the live MonitorBankRates average rate and the Census median property tax and insurance costs where you live, then take the result to the mortgage calculator to see the monthly payment.
Use your state's rate and housing costs
Loads your state's average mortgage rate, median property tax and homeowners insurance into the calculator and compares your buying power with the local median home value.
Home Buying Power Estimator
Enter your finances. Results update as you type.
Buying power by lending tier
Monthly payment at the selected tier
Take these numbers to the mortgage calculator to see the amortization schedule and PMI drop off date.
How Much House Can the Typical Household Afford Right Now?
As of September 21, 2026, with the MonitorBankRates national average 30 year fixed rate at 6.974%, a household earning the U.S. median income of $80,734 with no other debt and a $66,540 down payment can comfortably afford a home priced around $294,334 under the 28/36 rule. That keeps the full housing payment, about $1,884 per month including principal and interest of $1,512, property taxes and insurance, at 28% of gross income. The U.S. median home is valued at $332,700, so the median household falls $38,366 short of the median home at today's rate.
| Example: U.S. median income, 28/36 rule, 30 year fixed at 6.974% | Amount |
|---|---|
| Maximum monthly housing payment (28% of income) | $1,884 |
| Principal and interest | $1,512 |
| Loan amount | $227,794 |
| Affordable home price | $294,334 |
Rates change daily. This example is recalculated every time the page loads with the current MBR average rate and the latest Census medians.
How to Use the Affordability Calculator
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Enter your annual income
Use your gross annual income (before taxes), including all reliable sources: your salary, regular bonuses you can count on, and a co borrower's income if you will buy together. Leave out income that is truly variable or one time.
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Add your monthly debts
Sum up your minimum monthly payments on every recurring debt: car loan, student loans, credit cards (the minimum, not the balance), child support, alimony. Do not include utilities, insurance, or groceries; lenders only count debt payments that appear on your credit report.
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Set your down payment, rate and housing costs
Enter the cash you have for a down payment and the mortgage rate you have been quoted, or keep today's MBR average. Pick your state to load the typical property tax and insurance bill; those costs count toward the lender's housing ratio, so leaving them out overstates what you can afford.
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Compare the three affordability tiers
Conservative uses the classic 28/36 rule. Moderate uses the 31/43 limits common for FHA and many conventional approvals. Aggressive stretches to 36/50, the ceiling some automated underwriting systems allow with strong credit and reserves. The lower the tier, the more room you keep for everything else in life.
Buying a Home in Your Area
Understanding home affordability is the first step toward successful homeownership in your state. Lenders evaluate your financial health primarily through your debt to income (DTI) ratio, which compares your monthly debt payments to your gross monthly income. Two ratios matter: the front end ratio counts only your housing payment, and the back end ratio adds every other debt payment.
Signs you are in a comfortable range
- Your full housing payment is under 28% of gross income
- You keep a 3 to 6 month emergency fund after closing
- You can keep saving 10% to 15% for retirement
- A one point rate increase or a tax reassessment would not break the budget
Signs you are stretching
- You need the Aggressive tier to reach the price you want
- The down payment empties your savings
- You are counting on a raise, a bonus, or a second income that is not certain
- You would have to skip retirement contributions to make the payment
Frequently Asked Questions
How much house can I afford in Your Area?
Financial experts typically recommend the 28/36 rule: your housing payment should cost no more than 28% of your gross income, and your total debt should stay below 36%. Our Conservative tier is calculated using these benchmarks and includes property taxes, insurance and PMI. Try the mortgage calculator next to see the full payment at the price you are considering.
What is the difference between the Conservative, Moderate and Aggressive tiers?
Each tier is a pair of debt to income limits. Conservative caps housing at 28% of income and all debt at 36%. Moderate uses 31% and 43%, the limits many FHA and conventional approvals allow. Aggressive uses 36% and 50%, which some lenders permit with strong credit and cash reserves. A higher tier means a bigger loan but less room for unexpected expenses, maintenance and savings.
Does a larger down payment help?
Yes. A larger down payment increases your buying power dollar for dollar and may help you secure a lower interest rate. Putting 20% down also lets you avoid private mortgage insurance (PMI), which can add 0.3% to 1.5% of the loan amount per year to your monthly payment; the calculator adds PMI automatically when the down payment is under 20% of the price it finds.
Why does the calculator include taxes and insurance?
Because lenders do. The housing ratio in an underwriting decision is the full PITI payment (principal, interest, taxes and insurance) plus HOA dues and mortgage insurance. A calculator that counts only principal and interest can overstate your buying power by 20% to 30% in high tax or high insurance states, which is why picking your state above matters.
How does my credit score affect what I can afford?
Significantly. The interest rate you qualify for varies by credit score tier, and even a 0.5% rate difference changes your monthly payment by roughly 6% on a 30 year loan. Borrowers with 760 and above typically get the best rates; scores in the 620 to 680 range can pay 1% to 2% more in interest, which shrinks the loan a given payment supports by tens of thousands of dollars.
Should I buy at the top of what I can afford?
Generally no. The amount a lender approves you for is what they think you can pay, not what is comfortable to live on. Buying at 28% DTI rather than 50% leaves hundreds or thousands of dollars a month for retirement savings, kids' activities, vacations, and unexpected costs, the things that turn a house payment into a livable life.
How can I increase my buying power?
Three levers, in order of impact: reduce monthly debts by paying off auto loans or credit card balances before you apply; raise your credit score, since 740 and above unlocks better rates; and save a larger down payment. Reading mortgage shopping tips before you apply also helps you compare lenders, since a 0.25% rate difference can mean tens of thousands of dollars over 30 years.
