If you make $75,000 a year, you can typically afford a home priced between roughly $250,000 and $320,000, depending on your down payment, debts, and today’s mortgage rate. That range comes from the 28/36 rule, the same guideline lenders use to size up your loan. Here’s exactly how to calculate your own number.

The 28/36 Rule, Explained

Most lenders and financial planners size up affordability using two limits:

• 28% front-end ratio: Your housing costs (principal, interest, taxes, insurance, HOA/PMI) shouldn’t exceed 28% of your gross monthly income.
• 36% back-end ratio: All your debt payments combined — housing plus car loans, student loans, credit cards — shouldn’t exceed 36% of gross monthly income.

Lenders will often approve you for more than this, sometimes up to 43-50% DTI depending on the loan program. But qualifying for a payment and being comfortable with it are two different things. Most people who buy at their absolute maximum end up “house poor” — with no room left for savings, repairs, or a bad month.

How 2026 Mortgage Rates Change the Math

Rates matter more than most buyers expect. As of mid-2026, 30-year fixed rates have been sitting in the 6.1%-6.7% range depending on credit score and lender. A one-percentage-point swing in rate can shift your buying power by tens of thousands of dollars on the same monthly payment.

For example, at a $2,000/month principal-and-interest budget:

• At a 6% rate, that supports roughly a $335,000 loan.
• At a 7% rate, that same payment only supports about $300,000.

That’s a $35,000 difference in purchasing power from a single point of interest — which is why it’s worth recalculating whenever rates move, rather than relying on a number you saw months ago.

A Worked Example

Say you earn $75,000 a year ($6,250/month gross), have $400/month in existing debt, and plan a 10% down payment at a 6.5% rate.

• 28% limit: $6,250 × 0.28 = $1,750 max housing payment.
• 36% limit: ($6,250 × 0.36) − $400 existing debt = $1,850 max housing payment.
• The lower of the two ($1,750) is your real ceiling.

After backing out estimated taxes, insurance, and PMI, that $1,750 payment supports a home in roughly the $250,000-$320,000 range with 10% down — in line with national estimates for this income level.

Want your exact number instead of a rule of thumb? Plug your income, debts, and a current rate into our mortgage calculator to see your real monthly payment and maximum home price.

Hidden Costs Buyers Forget

The mortgage payment is just the start. Budget for these before you commit to a price range:

• Maintenance: 1-2% of home value per year ($3,000-$6,000/year on a $300,000 home).
• PMI: If you put down less than 20%, expect roughly 0.5-1% of the loan annually until you reach 20% equity.
• Closing costs: Typically 2-5% of the purchase price, due upfront.
• Utilities and HOA fees: Often underestimated, especially when moving from a smaller rental.

Lender Max vs. Your Real Budget

A common rule of thumb: if a lender approves you for $400,000, consider capping your search closer to $320,000 — about 80% of your maximum approval. That gap gives you breathing room for emergencies, retirement savings, and the everyday cost of actually living in the home, not just qualifying to buy it.

Frequently Asked Questions

How much house can I afford on a $75,000 salary?

Using the 28/36 rule at a 6.5% rate with 10% down and minimal other debt, that’s typically a home in the $250,000-$320,000 range, depending on your specific debts, credit score, and location.

Should I buy at my maximum pre-approval amount?

Generally no. Lenders approve you based on the maximum ratios they’ll accept, not what’s comfortable. Most planners recommend buying around 80% of your maximum approval to leave room for savings and unexpected costs.

How much does a 1% change in mortgage rate affect affordability?

On a $2,000/month payment, a rate move from 6% to 7% can reduce your loan capacity by roughly $35,000, since more of each payment goes toward interest rather than principal.