Rent & Housing
How Much House Can I Afford Calculator
A lender might approve more than your monthly life can handle. Estimate a safer home price using budget pressure, not just a preapproval number.
Using a 28% housing target, the estimated home price is around $350,000 before exact taxes, insurance, PMI, and closing costs.
Breakdown
| Target monthly housing budget | $2,567 |
|---|---|
| Debt pressure adjustment | $163 |
| Estimated affordable price | $350,000 |
| Down payment cash | $60,000 |
| Selected state (none income-tax level, official benchmarks) | Texas |
| State income tax estimate (Planning-level state profile) | 0% |
| Rent cost pressure (2023 ACS B25064: $1,413/mo median gross rent) | near U.S. baseline |
| Childcare cost pressure (2023 DOL NDCP: $10,078/yr infant center care) | 21% below U.S. baseline |
| Car insurance pressure | 20% above U.S. baseline |
| Healthcare cost pressure | 2% below U.S. baseline |
- Keep cash for closing costs and repairs.
- A lender may approve more than your monthly budget should handle.
- State data is an estimate for planning. Confirm tax, marketplace, insurance, housing, and benefit decisions with official state or federal sources.
- State rent and childcare benchmarks use Census ACS 2023 median gross rent and U.S. Department of Labor NDCP 2023 state childcare estimates where available.
- Confirm taxes with the Texas tax agency and IRS state-government links.
Estimate only, not tax, legal, financial, or medical advice. Always confirm important decisions with official sources or a qualified professional.
Copyable inputs
The goal is not the biggest approval. It is a payment you can keep through surprises.
Estimated affordable home price quick reference
Use these reference points before entering your own numbers. The calculator above gives a more useful estimate for your exact situation.
| Item | Rule of thumb | Note |
|---|---|---|
| 28/36 rule | Common guideline | Housing and total debt ratios |
| Maintenance | Often 1%/year | Rough ownership-cost planning rule |
| Safer result | Budget based | May be lower than lender max |
Home affordability depends on exact loan terms, taxes, insurance, repairs, and personal cash reserves.
Before You Decide
- Keep emergency fund after closing.
- Include repairs and maintenance.
- Include property tax shock and insurance changes.
- Compare with actual monthly spending.
Next three steps
- Use the mortgage payment calculator on homes in the range.
- Keep cash aside for closing and repairs.
- Compare owning with renting over your expected stay.
Estimate only, not tax, legal, financial, or medical advice. Always confirm important decisions with official sources or a qualified professional.
Frequently Asked Questions
- What does 28/36 mean?
- A common rule of thumb: housing near 28% of gross income and total debt near 36%, though real budgets vary.
- Should I use the lender maximum?
- Not automatically. Your budget may need a lower price than the lender approves.
- Does this include closing costs?
- No. Keep separate cash for closing costs and repairs.