How Much House Can I Afford on a $100K Salary?

Earning $100K a year means your gross monthly income is $8,333. Under the 28/36 rule, your total housing payment — including principal, interest, property taxes, and insurance — should stay below $2,333 per month. With your current monthly debts of $300, the 36% back-end ratio further caps your total debt payments at $3,000 per month. This gives you a maximum home purchase price of approximately $331K with 10% down at 6.5%.

A $100K salary puts you in the upper tier of conventional loan borrowers. Your $331K budget is accessible in most markets outside of major coastal cities. At this income, lenders compete for your business — use that leverage. Get pre-approved from at least 3 lenders and compare not just rates but closing cost credits, which can save $1,653–$3,305 at the table.

At $331K, you can afford the median home in roughly 35-40 states. This is the sweet spot of American homebuying — enough budget for a solid home in most markets without stretching into jumbo loan territory. States with median prices between $231K and $331K offer the best balance of affordability and quality of life. You'll also have room to be selective about neighborhoods, school districts, and condition.

Your next step: get pre-approved. A pre-approval letter based on your $100K income tells sellers you're serious and confirms your $331K budget with a real lender. It also locks in a rate for 60-90 days, protecting you from rate increases while you shop. Before applying, check your credit report (free at annualcreditreport.com), save at least $33,054 for your 10% down payment plus $6,611–$13,222 for closing costs, and gather your last 2 years of tax returns and W-2s.