Lenders answer this question with the 28/36 rule, not with a guess. Run the numbers on a $350,000 house with 20% down at today's typical rates, and the income you need is about $96,000 a year before debts are considered. Here is the full calculation, and how it moves when your down payment or debts change.
The payment on a $350,000 house
Start with the monthly payment, because income rules are applied to it.
| Component | Calculation | Per month |
|---|---|---|
| Loan amount | $350,000 − $70,000 down (20%) | $280,000 borrowed |
| Principal and interest | $280,000 at 6.5%, 30 years | $1,769.79 |
| Property tax | 1.1% of price per year | $320.83 |
| Home insurance | $1,800 per year | $150.00 |
| Total housing payment (PITI) | $2,240.62 |
Note what the mortgage alone hides: taxes and insurance add $470.83 a month, about 21% on top of principal and interest. Any income estimate that skips them, including most quick online guesses, understates what you need. Model your own rate and tax figures in our mortgage calculator.
Applying the 28/36 rule
Lenders use two ratios:
- Front-end (28%): housing payment ÷ gross monthly income must be 28% or less.
- Back-end (36%): housing payment plus all other monthly debts ÷ gross monthly income must be 36% or less.
Front-end: $2,240.62 ÷ 0.28 = $8,002.23 gross per month, which is $96,027 a year. Call it $96,000.
Back-end with no other debts: $2,240.62 ÷ 0.36 = $6,223.94 a month, or $74,687 a year. That is lower, so it does not bind; lenders take the stricter of the two tests, and here the 28% front-end rule is the one that decides.
Back-end with $450 a month of other debts (a car payment and a card minimum): ($2,240.62 + $450) ÷ 0.36 = $7,473.95 a month, or $89,687 a year. Still below the front-end requirement, so the answer stays about $96,000. Debts only take over as the binding constraint when they get large: at roughly $640 a month in other debts, the back-end rule starts demanding more than $96,000. This is the debt-to-income ratio at work, and it is why paying off a car loan can qualify you for more house than a raise does.
How the answer changes with the down payment
| Down payment | Loan | PITI | Income needed (28% rule) |
|---|---|---|---|
| 20% ($70,000) | $280,000 | $2,240.62 | $96,027 |
| 10% ($35,000) | $315,000 | about $2,462 + PMI | about $105,500 + PMI effect |
| 3.5% FHA ($12,250) | $337,750 | about $2,606 + MIP | about $111,700 + MIP effect |
Smaller down payments raise the loan, the payment, and add mortgage insurance (PMI or FHA's MIP) on top, which pushes the required income higher still. Exact PMI varies by credit score and insurer, so treat the smaller-down rows as floors, not quotes. Compare terms side by side in the home affordability calculator, and see the income math at other price points in how much house can I afford on a $100K salary.
The interest reality check
At 6.5% over 30 years, the $280,000 loan costs $357,125 in total interest, more than the loan itself. That does not change the income you need, but it changes what the house really costs: $350,000 plus interest, tax and insurance over three decades. A 15-year term slashes interest but roughly doubles the required payment; 30 vs 15 year mortgage lays out the trade-off.
Beyond qualifying: can you actually afford it?
Qualifying and affording are different tests. $96,000 gross is roughly $6,000 to $6,500 a month take-home for many households, and a $2,240.62 housing payment eats about 35% of that before utilities, maintenance (budget 1% of price per year, $3,500) and everything else. Many buyers are happier targeting a payment the 28% rule allows on net pay. Run both versions before you shop.
FAQ
How much income do you need for a $350,000 house?
About $96,000 a year under the 28/36 rule, assuming 20% down ($70,000), a $280,000 loan at 6.5% for 30 years, property tax at 1.1% and insurance of $1,800 a year, for a total payment of $2,240.62 a month.
What is the monthly payment on a $350,000 house?
With 20% down at 6.5%, principal and interest is $1,769.79. Adding property tax ($320.83) and insurance ($150) gives a full PITI payment of $2,240.62 a month. Use the mortgage calculator for your own rate and taxes.
How do debts change the income needed for a $350K house?
Through the 36% back-end rule. With $450 a month of other debts, the back-end test needs $89,687 a year, still under the $96,027 the 28% housing rule requires. Once other debts pass roughly $640 a month, the back-end rule becomes the binding one and required income climbs.
Can I buy a $350,000 house on an $80,000 salary?
It is very tight. $80,000 allows a housing payment of $1,866.67 at the 28% rule, but the payment is $2,240.62 with 20% down. A larger down payment, a lower rate, cheaper taxes or paying off debts to satisfy the ratios are the realistic paths; some loan programs also allow higher ratios with strong credit and reserves.
Does the 28/36 rule use gross or net income?
Gross (before tax) income. That is why a payment that passes the lender's test can still feel heavy in a real budget judged on take-home pay. Check both before committing.
How much are closing costs on a $350,000 house?
Typically 2% to 5% of the price, so $7,000 to $17,500, on top of the down payment. See closing costs explained for a line-by-line breakdown on a $300,000 example you can scale up.