Where do these numbers come from?
- Freddie MacPrimary Mortgage Market Survey: 30-yr fixed 7.32%, 15-yr 6.68%week of Oct 22, 2026
- U.S. Census BureauACS 5-year table B25103, property taxes paid by ZIP2020–2024 estimates
- U.S. Census BureauACS 5-year table B25077, median home value2020–2024 estimates
- CFPBWhen PMI must be removed (Homeowners Protection Act, 78% LTV)accessed Oct 23, 2026
- Insurance Information InstituteAverage homeowners (HO-3) premiumaccessed Oct 23, 2026
Checked Oct 23, 2026. $320,000 borrowed at 6.5% for 30 years: this calculator gives $2,022.62 a month in principal and interest, and =PMT(6.5%/12; 360; -320000) in LibreOffice Calc (the same PMT function as Excel and Google Sheets) returns 2,022.62. At this week's Freddie Mac average of 7.32% both give $2,198.18.
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Home price on $100k by interest rate
| Rate (30-yr, 20% down) | Max home price | Loan amount | Principal & interest |
|---|---|---|---|
| 5.5% | $414,000 | $331,000 | $1,879 |
| 6% | $395,000 | $316,000 | $1,893 |
| 6.5% | $377,000 | $302,000 | $1,907 |
| 7% | $361,000 | $289,000 | $1,920 |
| 7.5% | $345,000 | $276,000 | $1,932 |
Other monthly debts change the answer
Lenders also look at the back-end ratio: total monthly debt payments (housing plus car, student and card minimums) of about 36% of gross income, and some loan programs allow more. On $100k, 36% is $3,000 a month. If you already pay $700 a month on other debts, only $2,300 is left for housing, which lowers the budget.
| Other monthly debts | Housing budget | Max home price at 6.5% |
|---|---|---|
| $0 | $2,333 | $377,000 |
| $500 | $2,333 | $377,000 |
| $700 | $2,300 | $371,000 |
| $1,000 | $2,000 | $320,000 |
| $1,500 | $1,500 | $234,000 |
How the estimate works
Monthly budget = $100,000 × 28% ÷ 12 = $2,333.33. Subtract insurance ($1,569 ÷ 12 = $130.75). The rest has to cover principal and interest on 80% of the price plus property tax at 0.94% of the price a year. Solving for price gives about $377,163. The insurance figure is the national average HO-3 premium reported by the NAIC; property tax is the US median effective rate from Census ACS data. Your ZIP code can move both a lot: enter it in the calculator above.
What the rule leaves out
The 28% rule uses gross pay, so it ignores taxes, retirement saving, childcare and the cost of maintenance (often budgeted at 1% of the home’s value a year). Many buyers are more comfortable well below the maximum. With less than 20% down you also pay PMI, which lowers the price you can afford at the same monthly budget.
Rates in the tables are a range for comparison, not current market quotes. Payments are principal and interest only unless stated.
Related
Frequently asked questions
How much house can I afford making $100k?
About $377,000 with 20% down at 6.5% on a 30-year loan, using the 28% rule and average tax and insurance, with no other debts.
What is the 28/36 rule?
Spend no more than 28% of gross monthly income on housing and no more than 36% on all debt payments combined.
What monthly mortgage payment can I afford on $100k?
About $2,333 a month including taxes and insurance under the 28% rule.
Does a lower rate let me afford more?
Yes. At 5.5% the same budget supports about $414,000; at 7.5%, about $345,000.