How Much House Can I Afford on a $30K Salary?

Earning $30K a year means your gross monthly income is $2,500. Under the 28/36 rule, your total housing payment — including principal, interest, property taxes, and insurance — should stay below $700 per month. With your current monthly debts of $300, the 36% back-end ratio further caps your total debt payments at $900 per month. This gives you a maximum home purchase price of approximately $68K with 10% down at 6.5%.

At $30K, FHA loans are likely your strongest option. With a minimum 3.5% down payment of $2,384, you can get into a home with minimal upfront cash. USDA loans are also worth exploring if you're open to rural or suburban areas — they offer 0% down with no PMI. On a $68K home, avoiding the down payment entirely saves you $6,813 in upfront costs. Many state housing finance agencies also offer subsidized rates for buyers earning below area median income.

With a budget under $200K, focus on the most affordable markets: Mississippi ($175K median), West Virginia ($155K), and Arkansas ($195K) all have state medians within your range. Within pricier states, look at smaller cities and towns — you can often find homes 30-40% below the state median in rural and exurban areas. Consider manufactured homes, which average 40-50% less than traditional construction and have improved dramatically in quality.

Your next step: get pre-approved. A pre-approval letter based on your $30K income tells sellers you're serious and confirms your $68K 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 $6,813 for your 10% down payment plus $1,363–$2,725 for closing costs, and gather your last 2 years of tax returns and W-2s.