Start with the 28/36 rule

Lenders mostly judge affordability with your debt-to-income ratio, or DTI. The classic guideline, often called the 28/36 rule, sets two limits:

• 28% for housing. Your full housing payment, including principal, interest, property tax, insurance and any PMI or HOA dues, should stay at or below 28% of your gross monthly income.
• 36% for all debt. Housing plus every other monthly debt payment, such as car loans, student loans and minimum card payments, should stay at or below 36%.

Whichever limit is lower sets your housing budget. For a $75,000 income:

1. Gross monthly income: $75,000 ÷ 12$6,250
2. 28% housing limit$1,750
3. 36% total debt limit: $2,250 − $400 other debt$1,850
4. Housing budget (the lower of the two)$1,750

Turning $1,750 a month into a home price

Not all of the $1,750 goes to the loan. Taxes and insurance come out first, and because property tax rises with the price, the math works backward from the payment to the price. With $30,000 down, a 7% rate and the tax and insurance assumptions above, the numbers settle here:

1. Home price$226,898
2. Loan after $30,000 down (13% down)$196,898
3. Principal and interest$1,309.97
4. Property tax (1.1% a year)$207.99
5. Homeowners insurance$150.00
6. PMI (0.5% of the loan a year)$82.04
7. Total monthly payment$1,750.00

You can run your own numbers in the Home Affordability Calculator, which does this backward math for any income, rate or location.

What lenders may approve: the 31/43 view

The 28/36 rule is a comfortable budget, not a hard cap. Many lenders approve higher ratios. FHA guidelines, for example, often use 31% for housing and 43% for total debt as a benchmark, and conventional loans can allow a similar or higher total ratio for borrowers with strong credit and savings.

Using 31/43 on a $75,000 income raises the housing budget to $1,937.50 a month and the affordable price to about $250,376. That is $23,000 more house, but it also means about $188 more of every month's income goes to housing. Being approved for a payment and being comfortable with it are two different things.

How your interest rate changes the answer

With the same $1,750 budget and $30,000 down, here is the affordable price at different 30-year rates:

Each half-point is worth roughly $8,000 to $9,000 of buying power at this income. For reference, Freddie Mac's weekly survey on September 24, 2026 put the average 30-year fixed rate at 7.03%. A strong credit score and comparing several lenders are the most direct ways to land below average.

A 15-year loan changes the picture more. At the same 7% rate, the higher payment on a shorter term brings the affordable price down to about $182,350, although you would own the home outright in half the time.

How your down payment changes the answer

Every extra dollar down adds a little less than a dollar to the price, because some of the budget goes to the higher property tax on a pricier home. Reaching 20% down on a conventional loan removes PMI, which frees up that monthly cost for the loan itself.

How other debts shrink your budget

Other monthly debts do not matter until they push you past the 36% total limit. At $75,000, that happens once your non-housing debts go above $500 a month. After that, every dollar of other debt comes straight out of your housing budget.

An $800 monthly debt load, such as a car payment plus student loans, costs about $37,500 of buying power compared with $400. Paying off a card or car loan before applying can make a real difference. See our guide on paying off $5,000 in credit card debt for a plan.

Check the payment against your take-home pay

DTI rules use gross income, but you pay the mortgage from your paycheck. For a single filer in a state with no income tax, $75,000 in 2026 leaves roughly $61,600 after federal income tax, Social Security and Medicare, or about $5,130 a month. A $1,750 housing payment would take about 34% of that.

That leaves roughly $3,380 a month for everything else: utilities, food, transportation, savings and repairs. Homeowners should plan for maintenance too. A common rule of thumb is to set aside around 1% of the home's value a year, which is about $190 a month on a $227,000 home. If that feels tight, aim for a lower price than the maximum. If you are paid hourly, the Hourly to Salary Calculator helps you confirm your yearly income first.

How to afford more on $75,000

1. Clear small debts first. Getting other debts under $500 a month keeps the full 28% housing budget available.
2. Raise your credit score. A better rate adds thousands of dollars of buying power without changing your income.
3. Look at lower-tax areas. Property taxes vary widely. At 0.6% instead of 1.1%, the same budget supports a noticeably higher price.
4. Ask about first-time buyer programs. Many states and cities offer down payment assistance or lower-rate loans for eligible buyers.
5. Add a second income if you have one. Lenders count the combined income of everyone on the loan.
6. Get preapproved before shopping. A lender's preapproval shows your real limit based on your full application.

Frequently asked questions

Sources and how we calculated

Prices were found by solving for the home price at which principal and interest, property tax, insurance and PMI equal the housing budget, using the standard fixed-rate mortgage formula. PMI is applied only when the down payment is under 20% of the price. The take-home estimate uses the 2026 standard deduction and single filer brackets from the IRS and the 7.65% employee share of Social Security and Medicare taxes. The average rate comes from Freddie Mac's Primary Mortgage Market Survey. For more on the buying process, see the Consumer Financial Protection Bureau's Buying a House guide.