If you're earning $80,000 a year, the honest answer is: it depends heavily on your debt, down payment, and the interest rate you qualify for — but most lenders will put you in a home priced between $240,000 and $320,000.
The 28/36 rule, in plain numbers
Most lenders use the 28/36 rule as a starting point. At $80,000/year, your gross monthly income is about $6,667. That means:
- 28% for housing: roughly $1,867/month for principal, interest, taxes, and insurance (PITI)
- 36% for total debt: roughly $2,400/month including housing plus any car loans, student loans, or credit card minimums
Translating that into a home price
Assuming a 6.5% interest rate, a 30-year fixed mortgage, 10% down, and roughly $300/month set aside for taxes and insurance, a $1,867 housing budget supports a loan of about $246,000 — which on a 10%-down purchase means a home priced around $273,000.
If you can put down 20% instead, you avoid PMI (typically 0.5–1% of the loan annually), which frees up another $100–150/month — pushing your affordable home price closer to $300,000–$320,000.
What actually moves the needle
Three things matter more than your salary itself:
- Existing debt — every $200/month in car or student loan payments reduces your housing budget by roughly the same amount
- Down payment — a bigger down payment lowers both your loan size and your monthly PMI
- Interest rate — even a 1% rate swing changes your affordable price by tens of thousands of dollars
Run your own numbers
These figures are a starting point — your real budget depends on your specific debt, credit score, and local property taxes. Use the Mortgage Calculator to plug in your exact numbers and see the real monthly payment.