How Much House Can You Afford?
Based on a $200,000 gross annual income, 6.85% 30-year fixed rate, and the 28% housing expense rule.
$587K
Max home price
Down payment: $18K
Monthly P&I: $4K
Max PITI: $5K/mo
$600K
Max home price
Down payment: $30K
Monthly P&I: $4K
Max PITI: $5K/mo
$633K
Max home price
Down payment: $63K
Monthly P&I: $4K
Max PITI: $5K/mo
$712K
Max home price
Down payment: $142K
Monthly P&I: $4K
Max PITI: $5K/mo
* PITI = Principal, Interest, Taxes, Insurance. Actual affordability varies by credit score, existing debts, and local property tax rates. These figures use the 28% front-end DTI rule; lenders may approve up to 36–43% back-end DTI.
Where Can You Afford to Buy on $200,000?
Comparing your maximum home price ($712K with 20% down) to median prices in 30 major cities.
Comfortably Affordable
Possible with Smaller Down Payment or Dual Income
Likely Out of Range on $200,000
Seattle, WA
Median: $750K
Los Angeles, CA
Median: $850K
New York, NY
Median: $780K
San Francisco, CA
Median: $1.20M
Frequently Asked Questions
On a $200,000 salary, you can generally afford a home priced up to $712K with a 20% down payment, or $600K with 5% down, based on the standard 28% front-end debt-to-income ratio. Your actual affordability depends on your credit score, existing debts, and local property taxes.
The maximum monthly housing payment (PITI) on a $200,000 salary is approximately $5K/month using the 28% rule. With a 20% down payment on a $712K home at 6.85%, the principal and interest payment would be approximately $4K/month.
Whether renting or buying is better on a $200,000 salary depends on your local market, down payment savings, and how long you plan to stay. In affordable markets like Indianapolis or Pittsburgh, buying typically makes sense after 3–5 years. In high-cost markets like San Francisco or New York, renting is often more cost-effective even on a $200,000 income.