How Much House Can You Afford?
Based on a $80,000 gross annual income, 6.85% 30-year fixed rate, and the 28% housing expense rule.
$235K
Max home price
Down payment: $7K
Monthly P&I: $1K
Max PITI: $2K/mo
$240K
Max home price
Down payment: $12K
Monthly P&I: $1K
Max PITI: $2K/mo
$253K
Max home price
Down payment: $25K
Monthly P&I: $1K
Max PITI: $2K/mo
$285K
Max home price
Down payment: $57K
Monthly P&I: $1K
Max PITI: $2K/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 $80,000?
Comparing your maximum home price ($285K 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 $80,000
Indianapolis, IN
Median: $280K
Columbus, OH
Median: $295K
San Antonio, TX
Median: $285K
Nashville, TN
Median: $430K
Frequently Asked Questions
On a $80,000 salary, you can generally afford a home priced up to $285K with a 20% down payment, or $240K 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 $80,000 salary is approximately $2K/month using the 28% rule. With a 20% down payment on a $285K home at 6.85%, the principal and interest payment would be approximately $1K/month.
Whether renting or buying is better on a $80,000 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 $80,000 income.