The income table (assumptions visible)
Assumptions: 20% down · 30-year fixed at 6.5% (illustrative) · property tax 1.1% of value per year (national average) · insurance $2,341/year (Bankrate 2025 average) · housing capped at 28% of gross income. Change any of these and the number moves — that's what the calculator is for.
| Home price | Monthly cost (PITI) | Income needed |
|---|---|---|
| $250,000 | $1,688 | $72,359 |
| $300,000 | $1,987 | $85,159 |
| $400,000 | $2,584 | $110,759 |
| $500,000 | $3,182 | $136,358 |
| $600,000 | $3,779 | $161,958 |
| $750,000 | $4,675 | $200,357 |
| $1,000,000 | $6,168 | $264,355 |
The five levers that move your number
- Existing debts (the 36% back-end rule). Car payments, student loans, and card minimums subtract from housing capacity dollar-for-dollar under the total-debt cap. A $450/month car loan can cost you roughly $75,336 of house price — often the single biggest lever.
- Down payment. More down = smaller loan at the same price, and at 20% you drop PMI entirely.
- Rate. At $400k, each half-point of rate moves the required income by about $4,460.
- Location. Property tax spans 0.27% (Hawaii) to 2.23% (New Jersey) and insurance $850 to $6,400+ by state — check the state-by-state pages.
- The ratio itself. 28/36 is a guideline; lenders may approve up to ~45% back-end DTI. Approval ≠ comfort — see the three-scenario table in the affordability calculator.
Reading it in reverse: what your income buys
Flip the table: $100,000 of income supports about $2,333/month of housing under the 28% rule, which lands near a $360,000–$380,000 price at these assumptions. Higher-tax states compress that; lower rates expand it. For the payment side of a specific loan amount, the payments-by-amount tables show every size from $100k to $2M at rates from 5% to 8%.
What lenders check beyond the ratio
- Credit score — sets your rate tier, which feeds back into the ratio.
- Cash to close — down payment + 2–5% closing costs + reserves.
- Income stability — two-year history for variable income and self-employment.
None of that changes the arithmetic here — it changes which row of the table you're allowed to claim. Start from a comfortable payment, not a maximum approval, and let the affordability calculator show both.