$80,000 is a solid salary — roughly 1.5x the US median household income. So how much house does it actually buy? Using the lending industry's standard 28/36 rule, the answer lands around $280,000–$330,000 depending on your debts, down payment and rate. Here is the exact math.

The 28/36 rule, step by step

Lenders use two ratios:

  • Front-end (28%): Housing costs ≤ 28% of gross monthly income
  • Back-end (36%): All monthly debts ≤ 36% of gross monthly income

On $80,000/year ($6,667/month):

  • Front-end limit: $6,667 × 0.28 = $1,867/month for housing
  • Back-end limit: $6,667 × 0.36 = $2,400/month for everything

If you have $500/month in car and student loan payments, the back-end rule allows $2,400 − $500 = $1,900 for housing — so the front-end $1,867 is the binding limit.

Converting the payment to a price

At 6.5% on a 30-year loan, $1,867/month in principal and interest supports a loan of about $295,000. With 20% down, that means a home price of roughly $369,000 — but wait. That $1,867 must also cover property taxes and insurance (PITI), which lenders include in "housing." After ~$300/month for taxes and insurance, the P&I budget is closer to $1,567, supporting a loan of ~$248,000 and a price of ~$310,000 with 20% down.

Realistic ranges on $80k salary:

| Down payment | Approx. max home price (6.5%, 30-yr) | |---|---| | 10% down | ~$275,000 | | 20% down | ~$310,000 | | Debts over $800/mo | subtract ~$40,000–$60,000 |

Five things that move the number

  1. Interest rate. At 5.5% instead of 6.5%, the same payment buys ~12% more house. Rate matters more than most buyers think.
  2. Existing debts. Every $200/month in debt payments cuts roughly $30,000 off your max price. Killing a car payment before buying is powerful.
  3. Down payment. 20% avoids PMI (about 0.5–1% of the loan per year) and directly raises the price you can reach.
  4. Property taxes. In New Jersey or Illinois, taxes can add $600+/month; in Alabama, under $150. Location changes affordability enormously.
  5. HOA dues. A $300/month HOA fee counts against your ratios exactly like a higher mortgage payment.

The costs buyers forget

The mortgage is only the headline. Budget ~1% of the home's value per year for maintenance ($3,000/year on a $300,000 home), plus utilities, and an emergency fund that covers 3–6 months of the new higher housing cost — not your old rent.

Should you max it out?

The 28/36 rule is a ceiling, not a target. Buying 10–20% below your max leaves room for savings, repairs and life. Being "house poor" — technically approved but with zero margin — is how a good salary turns into chronic financial stress.

Run your own numbers with our home affordability calculator: enter your income, debts, rate and down payment for a personalized max price.

Estimates for planning only — not financial advice. Actual approval depends on your lender.