How Much House Can I Afford on a $70,000 Salary?
If you're earning $70,000 a year, you can typically afford a home in the $220,000–$280,000 range, depending on your down payment, debt, interest rate, and where you live. Here's how that number actually gets calculated — and how to get a figure specific to your situation.
Start with the 28/36 rule
Most lenders use a version of the 28/36 rule as a starting guideline:
- 28% — your monthly housing payment (principal, interest, taxes, insurance) shouldn't exceed 28% of your gross monthly income
- 36% — your total monthly debt (housing plus car payments, student loans, credit cards, etc.) shouldn't exceed 36% of gross monthly income
On a $70,000 salary, that's about $5,833 gross per month.
| Guideline | Monthly limit |
|---|---|
| 28% for housing | ~$1,633 |
| 36% for total debt | ~$2,100 |
What that translates to in home price
Assuming a 20% down payment, a 30-year fixed mortgage, and a 6.5% interest rate, a $1,633 monthly housing payment (including estimated property tax and insurance) supports a home price of roughly $230,000–$260,000 — though this swings meaningfully with your interest rate, local property tax rates, and how much you put down.
A few things that move this number a lot:
- A bigger down payment lowers your monthly payment and loan amount, stretching your budget further
- Existing debt eats directly into your 36% ceiling — a $400/month car payment can lower your home-buying budget by tens of thousands of dollars
- Property tax and insurance vary widely by state and even by county, so the same salary affords a noticeably different home in Texas versus California
- PMI (private mortgage insurance) applies if you put down less than 20%, adding to your monthly cost
These are general guidelines — plug in your actual numbers for a real answer.
Try the Mortgage Calculator →A quick example
Sarah makes $70,000/year ($5,833/month gross), has a $300/month car payment, and no other debt. Her 36% ceiling is $2,100/month — minus her car payment, that leaves about $1,800/month for housing. With 10% down and a 6.75% rate, that supports a home price of roughly $255,000, though she'd also want to budget for PMI since she's putting down less than 20%.
This article provides general educational information, not personalized financial or lending advice. Actual affordability depends on your credit profile, debt, local taxes, and a lender's specific underwriting guidelines — talk to a mortgage lender for numbers you can act on.