Updated November 2026
Quick answer: on an $80,000 salary, you can afford a home of about $245,000, with a monthly payment of around $1,864. That assumes a $24,000 down payment, $500 in other monthly debts and a 30-year mortgage at 6.5%.
The answer depends most on your other debts, your down payment and your interest rate. Below, we break down how lenders work it out and how each factor changes the home price you can afford.
How lenders decide what you can afford
Most lenders use the 28/36 rule. On an $80,000 income, your gross monthly income is $6,667:
- 28% for housing: up to $1,867 a month for your mortgage, property tax, insurance and any PMI or HOA fees.
- 36% for all debts: up to $2,400 a month for housing plus car loans, student loans and card payments.
Your budget is the lower of the two. With $500 in other debts, the 36% limit leaves $1,900 for housing, so the 28% limit of $1,867 applies.
How your other debts change the answer
With a $24,000 down payment and a 6.5% rate:
| Monthly debt payments | Home price you can afford | Monthly housing payment |
|---|---|---|
| $0 | $245,000 | $1,864 |
| $300 | $245,000 | $1,864 |
| $500 | $245,000 | $1,864 |
| $800 | $210,000 | $1,596 |
| $1,200 | $158,000 | $1,198 |
With up to about $533 a month in other debts, the 28% housing limit is what holds you back, so the price stays the same. Above that, every extra dollar of monthly debt lowers the home price you can afford.
How interest rates change the answer
| Mortgage rate | Home price you can afford | Monthly housing payment |
|---|---|---|
| 5.5% | $265,000 | $1,862 |
| 6.0% | $255,000 | $1,865 |
| 6.5% | $245,000 | $1,864 |
| 7.0% | $236,000 | $1,865 |
| 7.5% | $227,000 | $1,862 |
Can you afford more?
Some loan programs, such as FHA loans, allow higher limits of around 31% for housing and 43% for all debts. Under those limits, you could qualify for about $271,000. Being approved for more doesn't mean you should borrow more, though. Leave room for savings, repairs and the unexpected.
Check what you can afford with your numbers →
Costs to plan for beyond the mortgage
- Closing costs: usually 2% to 5% of the price, paid upfront.
- Maintenance: about 1% to 2% of the home's value each year.
- Utilities, furnishing and moving costs.
Once you have a price in mind, see the full payment with the mortgage calculator. Want to free up your budget first? Try the debt payoff calculator.
Frequently asked questions
How much house can I afford on $80,000 a year?
About $245,000 with a $24,000 down payment, $500 in monthly debts and a 6.5% 30-year mortgage, using the 28/36 rule. A lower rate or a bigger down payment would let you afford more.
What is 28% of an $80,000 salary?
28% of your gross monthly income of $6,667 is $1,867 a month. That's the most lenders typically like you to spend on housing.
Does my down payment change how much house I can afford?
Yes. A bigger down payment adds directly to the price you can afford and can remove PMI once it reaches 20%, which lowers your monthly cost.
Should I spend the maximum I qualify for?
Not necessarily. Many people choose a home below their maximum to keep money for savings, retirement and emergencies.