How Much House on a $150,000 Salary?

With a $150,000 salary, the 28% rule allows about $3,500 a month for housing — enough for a home in the $550,000 to $600,000 range in most markets.

The math

28% of $150,000 is $42,000 a year, or $3,500 a month. Backing out tax and insurance, that supports roughly a $430,000 loan at 6.5% with 20% down.

By market

That budget buys a comfortable home in Florida ($395,000 average) or Texas ($340,000), and a mid-range home in California ($735,000) if you stretch.

Room for taxes and debt

In high-tax states, more of that $3,500 goes to property tax, shrinking the loan you can carry. Our salary calculator handles the local numbers.