The Short Answer
A $100,000 salary supports a housing payment of about $2,333 a month under the 28% rule. At a 6.95% average 30-year fixed rate (Freddie Mac, week of September 17, 2026), with 10% down and no other debts, that buys a home of about $305,000.
Your down payment moves the number more than anything else you control:
| Loan | Max home price | Down payment | Closing costs* | Cash needed |
|---|---|---|---|---|
| FHA, 3.5% down | $285,000 | $9,975 | $8,550 | $18,525 |
| Conventional, 5% down | $291,000 | $14,550 | $8,730 | $23,280 |
| Conventional, 10% down | $305,000 | $30,500 | $9,150 | $39,650 |
| Conventional, 20% down | $357,000 | $71,400 | $10,710 | $82,110 |
Each option comes with a total monthly payment of about $2,333. *Closing costs estimated at 3% of the price (typical range: 2% to 5%).
$100,000 is above the median U.S. household income ($87,460 in 2025, Census Bureau), yet it still falls short of the typical listing: the median U.S. listing price was $424,500 in August 2026 (Realtor.com), and it would take an income of about $139,000 to afford it under the same assumptions.
Where the $2,333 Goes
The 28% front-end ratio covers everything you pay for the home each month, not just the mortgage. On a $305,000 home with 10% down it breaks down like this:
| Cost | Per month |
|---|---|
| Principal and interest | $1,817 ($275,000 loan at 6.95%) |
| Property taxes | $226 (0.89% a year) |
| Homeowners insurance | $153 (0.6% a year) |
| Private mortgage insurance | $137 (0.6% of the loan a year) |
| Total | $2,333 |
Private mortgage insurance adds about $1,644 a year until you build 20% equity. On this loan, scheduled payments alone get you there in about 8 years; you can then ask the lender to cancel PMI, and federal law requires it to end automatically at 22% equity. Extra principal payments get you there sooner.
One Salary or Two: Why Household Debts Matter
Lenders treat a single $100,000 salary and two $50,000 salaries the same way: they add up gross income. They also add up debts, and that is where two-earner households often lose ground.
The 36% back-end ratio allows $3,000 a month in total debt. The first $667 of non-housing payments costs nothing, because the 28% limit binds first. After that, each $100 of monthly debt removes about $13,000 from your budget:
| Other monthly debts | Max housing payment | Max home price (10% down) |
|---|---|---|
| $0 | $2,333 | $305,000 |
| $600 | $2,333 | $305,000 |
| $900 | $2,100 | $275,000 |
| $1,200 | $1,800 | $235,000 |
| $1,500 | $1,500 | $196,000 |
Take a couple with two car payments ($450 and $350) and a $250 student loan payment: $1,050 a month in other debt. Their housing budget drops to $1,950 and their maximum price to about $255,000, some $50,000 less than a debt-free household with the same income.
State by State: Where $100K Buys the Typical Listing
Using each state's own property tax rate, 10% down and no other debt, a $100,000 salary reaches the median listing price in 9 of the 50 states: West Virginia, Louisiana, Mississippi, Oklahoma, Indiana, Iowa, Ohio, Missouri and Kentucky, two of them by less than $5,000. In the other 41 it falls short, by more than $400,000 in Hawaii, California and Massachusetts.
| State | Median listing price | Property tax rate | Max price on $100K | Difference |
|---|---|---|---|---|
| West Virginia | $259,900 | 0.52% | $318,000 | +$58,000 |
| Louisiana | $275,000 | 0.53% | $317,000 | +$42,000 |
| Mississippi | $295,000 | 0.65% | $313,000 | +$18,000 |
| Oklahoma | $299,000 | 0.75% | $310,000 | +$11,000 |
| Indiana | $299,900 | 0.74% | $310,000 | +$10,000 |
| Iowa | $285,000 | 1.29% | $292,000 | +$7,000 |
| Ohio | $289,000 | 1.22% | $294,000 | +$5,000 |
| Missouri | $305,000 | 0.79% | $308,000 | +$3,000 |
| Kentucky | $310,000 | 0.71% | $311,000 | +$1,000 |
| Kansas | $295,000 | 1.25% | $294,000 | −$1,000 |
| Arkansas | $320,000 | 0.52% | $318,000 | −$2,000 |
| Michigan | $300,000 | 1.18% | $296,000 | −$4,000 |
| Alabama | $330,900 | 0.38% | $323,000 | −$8,000 |
| Pennsylvania | $315,000 | 1.16% | $296,000 | −$19,000 |
| South Carolina | $360,000 | 0.45% | $321,000 | −$39,000 |
| Nebraska | $340,000 | 1.42% | $288,000 | −$52,000 |
| Illinois | $329,000 | 1.92% | $274,000 | −$55,000 |
| Texas | $359,990 | 1.31% | $292,000 | −$68,000 |
| North Dakota | $372,500 | 0.96% | $303,000 | −$70,000 |
| South Dakota | $375,000 | 1.02% | $301,000 | −$74,000 |
| Georgia | $394,000 | 0.74% | $310,000 | −$84,000 |
| Minnesota | $388,000 | 1.02% | $301,000 | −$87,000 |
| New Mexico | $404,970 | 0.63% | $314,000 | −$91,000 |
| North Carolina | $409,220 | 0.61% | $315,000 | −$95,000 |
| Florida | $414,900 | 0.75% | $310,000 | −$105,000 |
| Wisconsin | $398,950 | 1.25% | $294,000 | −$105,000 |
| Tennessee | $434,700 | 0.45% | $320,000 | −$114,000 |
| Maryland | $425,000 | 0.95% | $303,000 | −$122,000 |
| Arizona | $459,990 | 0.43% | $321,000 | −$139,000 |
| Alaska | $445,000 | 1.06% | $300,000 | −$145,000 |
| Maine | $450,000 | 0.91% | $304,000 | −$146,000 |
| Virginia | $457,000 | 0.71% | $311,000 | −$146,000 |
| Delaware | $484,900 | 0.47% | $320,000 | −$165,000 |
| Nevada | $489,000 | 0.47% | $320,000 | −$169,000 |
| Wyoming | $499,000 | 0.57% | $316,000 | −$183,000 |
| Vermont | $517,500 | 1.42% | $288,000 | −$229,000 |
| Connecticut | $530,000 | 1.66% | $282,000 | −$248,000 |
| Colorado | $568,900 | 0.49% | $319,000 | −$250,000 |
| Oregon | $565,000 | 0.78% | $309,000 | −$256,000 |
| Utah | $579,000 | 0.49% | $319,000 | −$260,000 |
| Idaho | $599,000 | 0.43% | $321,000 | −$278,000 |
| New Jersey | $565,000 | 1.89% | $275,000 | −$290,000 |
| Rhode Island | $589,900 | 1.07% | $299,000 | −$291,000 |
| New Hampshire | $599,000 | 1.46% | $287,000 | −$312,000 |
| New York | $615,000 | 1.45% | $287,000 | −$328,000 |
| Montana | $649,000 | 0.69% | $312,000 | −$337,000 |
| Washington | $649,000 | 0.79% | $309,000 | −$340,000 |
| Hawaii | $736,000 | 0.27% | $327,000 | −$409,000 |
| California | $730,000 | 0.71% | $311,000 | −$419,000 |
| Massachusetts | $725,000 | 1.00% | $301,000 | −$424,000 |
With 20% down, the budget reaches the median listing in 15 states. Keep in mind that median listing prices include every home for sale, from starter condos to luxury houses, so homes below the median are available almost everywhere.
Rates: What Changed This Year
Freddie Mac's average 30-year rate was 6.95% in the week of September 17, 2026, up from 6.26% a year earlier. On a $100,000 salary that difference alone costs about $17,000 of buying power:
| 30-year fixed rate | Max home price (10% down) |
|---|---|
| 6.00% | $329,000 |
| 6.26% (a year ago) | $322,000 |
| 6.50% | $316,000 |
| 6.95% (now) | $305,000 |
| 7.50% | $292,000 |
Mortgage rates follow longer-term Treasury yields, which rose in September as the Federal Reserve raised its target range. If rates ease, the budget recovers quickly; if you buy now and rates fall, refinancing is an option, though it comes with its own closing costs.
Should You Buy at the Maximum?
You can probably borrow more than the 28/36 rule suggests. Fannie Mae's automated underwriting can approve total debt-to-income ratios up to 50%. At 45% with no other debt, a $100,000 salary could qualify for about $490,000, with a housing payment of $3,750 a month.
Before stretching, check what the payment leaves for the rest of your plan:
- Retirement: a common guideline is to save about 15% of pre-tax income, including any employer match.
- Emergency fund: three to six months of expenses, and closer to six once you own a home. Our emergency fund calculator sizes it for you.
- Upkeep: a common rule of thumb is to budget 1% to 2% of the home's value a year for maintenance and repairs, or $3,050 to $6,100 a year on a $305,000 home.
If those three fit alongside the payment, you have room to stretch. If not, the 28% line is there for a reason.
20% Down or Less? The Trade-Off
Putting 20% down removes PMI and lowers the loan, so the same $2,333 payment supports a pricier home: about $357,000 instead of $305,000 with 10% down. The catch is cash: you would need about $42,000 more at closing.
Waiting to save that difference only pays off if home prices and rates cooperate while you save. For many buyers, 10% down plus a plan to reach 20% equity is the practical middle ground, and first-time buyers can often put down as little as 3% on a conventional loan. Our mortgage comparison calculator shows the total cost of each option over time.
Methodology
Maximum prices apply the 28/36 rule to gross income, with a 30-year fixed mortgage at 6.95%: Freddie Mac's Primary Mortgage Market Survey average for the week of September 17, 2026. Property taxes use each state's median real estate taxes paid divided by its median home value (U.S. Census Bureau, American Community Survey 2024); the national figure is 0.89%. Homeowners insurance is assumed at 0.6% of the price per year and private mortgage insurance at 0.6% of the loan per year on conventional loans with less than 20% down. FHA figures include HUD's 1.75% upfront premium (financed into the loan) and 0.55% annual premium. Closing costs are estimated at 3% of the price. Median listing prices are Realtor.com's for August 2026. Rates and prices come from FRED (Federal Reserve Bank of St. Louis), tax data from data.census.gov.
These are estimates for a buyer earning $100,000 with no HOA dues. Your insurance quote, credit score, local tax rate and lender will change the result, so run your own numbers in the home affordability calculator.
Related Calculators
Home Affordability Calculator
Find your maximum home price from your income, debts and down payment.
Try Calculator →Compare Mortgages Calculator
Compare down payments, rates and loan types side by side.
Try Calculator →Emergency Fund Calculator
Size the cash cushion to keep after you buy.
Try Calculator →