The Short Answer
On an $80,000 salary, the 28/36 rule caps your total housing payment at about $1,867 a month. At Freddie Mac's average 30-year fixed rate of 6.95% (week of September 17, 2026), with 10% down and no other monthly debts, that buys a home of about $244,000.
The exact figure depends on your down payment, your other debts and where you buy. Here is the maximum price for the most common down payment choices, using the national average property tax rate of 0.89%:
| Loan | Max home price | Down payment | Closing costs* | Cash needed |
|---|---|---|---|---|
| FHA, 3.5% down | $228,000 | $7,980 | $6,840 | $14,820 |
| Conventional, 5% down | $233,000 | $11,650 | $6,990 | $18,640 |
| Conventional, 10% down | $244,000 | $24,400 | $7,320 | $31,720 |
| Conventional, 20% down | $286,000 | $57,200 | $8,580 | $65,780 |
Each option comes with a total monthly payment of about $1,867. *Closing costs estimated at 3% of the price; they typically run 2% to 5%.
For context, $80,000 is a little below the median U.S. household income, which was $87,460 in 2025 according to the Census Bureau. The median home listed for sale in the U.S. was priced at $424,500 in August 2026 (Realtor.com). Under the same assumptions, a household would need to earn about $139,000 a year to afford it.
How the Math Works
Lenders look at two ratios, both based on gross (pre-tax) income:
- Front-end ratio (28%): housing costs (principal, interest, property taxes, homeowners insurance and mortgage insurance) should stay under 28% of gross monthly income. On $80,000, or $6,667 a month, that is $1,867.
- Back-end ratio (36%): housing plus every other debt payment (car loans, student loans, credit card minimums) should stay under 36%, or $2,400 a month.
Here is how the $1,867 payment breaks down on a $244,000 home with 10% down:
| Cost | Per month |
|---|---|
| Principal and interest | $1,454 ($220,000 loan at 6.95%) |
| Property taxes | $181 (0.89% a year) |
| Homeowners insurance | $122 (0.6% a year) |
| Private mortgage insurance | $110 (0.6% of the loan a year) |
| Total | $1,867 |
Principal and interest take about 78% of the payment. Taxes, insurance and PMI take the rest, which is why the price you can afford is lower than the loan amount alone would suggest. For a deeper look at the two ratios, see our guide to the 28/36 rule.
Your Other Debts: The $533 Threshold
The 36% rule leaves room for $533 a month of other debt payments ($2,400 minus $1,867) before it starts to shrink your housing budget. Above that line, every extra $100 of monthly debt lowers the home you can afford by about $13,000.
| Other monthly debts | Max housing payment | Max home price (10% down) |
|---|---|---|
| $0 | $1,867 | $244,000 |
| $300 | $1,867 | $244,000 |
| $600 | $1,800 | $235,000 |
| $900 | $1,500 | $196,000 |
| $1,200 | $1,200 | $157,000 |
A single car payment can push you past the threshold. If you plan to buy in the next year or two, paying down a car loan or a credit card balance can do more for your budget than a bigger down payment. Our debt payoff calculator shows how quickly you can get there.
What the September Rate Jump Did to Your Budget
Mortgage rates climbed in September 2026. Freddie Mac's average 30-year fixed rate reached 6.95% in the week of September 17, 2026, up from 6.76% a week earlier and 6.26% a year before. The Federal Reserve raised its target range the same week, although mortgage rates follow longer-term Treasury yields rather than the Fed's rate directly.
| 30-year fixed rate | Max home price (10% down) |
|---|---|
| 6.00% | $263,000 |
| 6.26% (a year ago) | $258,000 |
| 6.50% | $253,000 |
| 6.95% (now) | $244,000 |
| 7.50% | $234,000 |
Compared with a year ago, the same $80,000 salary buys about $14,000 less house. Each half-point move in rates shifts the budget by roughly $10,000 in either direction.
State by State: Where $80K Reaches the Typical Listing
We compared the maximum price on an $80,000 salary (10% down, no other debt, each state's own property tax rate) with the median listing price in every state in August 2026.
In none of the 50 states does the median listing fit the budget. West Virginia comes closest, with a median listing of $259,900 against a maximum of $254,000. In Louisiana and Mississippi the gap is under $50,000; in Hawaii, California and Massachusetts it tops $470,000.
| State | Median listing price | Property tax rate | Max price on $80K | Difference |
|---|---|---|---|---|
| West Virginia | $259,900 | 0.52% | $254,000 | −$5,000 |
| Louisiana | $275,000 | 0.53% | $254,000 | −$21,000 |
| Mississippi | $295,000 | 0.65% | $250,000 | −$45,000 |
| Iowa | $285,000 | 1.29% | $234,000 | −$51,000 |
| Oklahoma | $299,000 | 0.75% | $248,000 | −$51,000 |
| Indiana | $299,900 | 0.74% | $248,000 | −$52,000 |
| Ohio | $289,000 | 1.22% | $235,000 | −$54,000 |
| Missouri | $305,000 | 0.79% | $247,000 | −$58,000 |
| Kansas | $295,000 | 1.25% | $235,000 | −$60,000 |
| Kentucky | $310,000 | 0.71% | $249,000 | −$61,000 |
| Michigan | $300,000 | 1.18% | $237,000 | −$63,000 |
| Arkansas | $320,000 | 0.52% | $254,000 | −$66,000 |
| Alabama | $330,900 | 0.38% | $258,000 | −$73,000 |
| Pennsylvania | $315,000 | 1.16% | $237,000 | −$78,000 |
| South Carolina | $360,000 | 0.45% | $256,000 | −$104,000 |
| Nebraska | $340,000 | 1.42% | $231,000 | −$109,000 |
| Illinois | $329,000 | 1.92% | $219,000 | −$110,000 |
| Texas | $359,990 | 1.31% | $233,000 | −$127,000 |
| North Dakota | $372,500 | 0.96% | $242,000 | −$130,000 |
| South Dakota | $375,000 | 1.02% | $241,000 | −$134,000 |
| Georgia | $394,000 | 0.74% | $248,000 | −$146,000 |
| Minnesota | $388,000 | 1.02% | $241,000 | −$147,000 |
| New Mexico | $404,970 | 0.63% | $251,000 | −$154,000 |
| North Carolina | $409,220 | 0.61% | $252,000 | −$158,000 |
| Wisconsin | $398,950 | 1.25% | $235,000 | −$164,000 |
| Florida | $414,900 | 0.75% | $248,000 | −$167,000 |
| Tennessee | $434,700 | 0.45% | $256,000 | −$178,000 |
| Maryland | $425,000 | 0.95% | $242,000 | −$183,000 |
| Arizona | $459,990 | 0.43% | $257,000 | −$203,000 |
| Alaska | $445,000 | 1.06% | $240,000 | −$205,000 |
| Maine | $450,000 | 0.91% | $244,000 | −$206,000 |
| Virginia | $457,000 | 0.71% | $249,000 | −$208,000 |
| Delaware | $484,900 | 0.47% | $256,000 | −$229,000 |
| Nevada | $489,000 | 0.47% | $256,000 | −$233,000 |
| Wyoming | $499,000 | 0.57% | $253,000 | −$246,000 |
| Vermont | $517,500 | 1.42% | $231,000 | −$287,000 |
| Connecticut | $530,000 | 1.66% | $225,000 | −$305,000 |
| Colorado | $568,900 | 0.49% | $255,000 | −$314,000 |
| Oregon | $565,000 | 0.78% | $247,000 | −$318,000 |
| Utah | $579,000 | 0.49% | $255,000 | −$324,000 |
| Idaho | $599,000 | 0.43% | $257,000 | −$342,000 |
| New Jersey | $565,000 | 1.89% | $220,000 | −$345,000 |
| Rhode Island | $589,900 | 1.07% | $239,000 | −$351,000 |
| New Hampshire | $599,000 | 1.46% | $230,000 | −$369,000 |
| New York | $615,000 | 1.45% | $230,000 | −$385,000 |
| Montana | $649,000 | 0.69% | $249,000 | −$400,000 |
| Washington | $649,000 | 0.79% | $247,000 | −$402,000 |
| Hawaii | $736,000 | 0.27% | $262,000 | −$474,000 |
| California | $730,000 | 0.71% | $249,000 | −$481,000 |
| Massachusetts | $725,000 | 1.00% | $241,000 | −$484,000 |
With 20% down the budget rises by about $42,000, which is enough for the median listing in West Virginia and Louisiana.
Median listing prices cover every home for sale, including large and luxury properties, so plenty of homes sell below the median in every state. The table shows how far the typical listing sits from an $80K budget, not whether you can find a home.
Approved vs. Affordable
Lenders will often approve more than the 28/36 rule suggests. Fannie Mae's automated underwriting can accept total debt-to-income ratios up to 50%, and FHA loans can go above the standard limits with compensating factors. At a 45% ratio with no other debt, an $80,000 salary could qualify for a home of about $392,000.
That would mean spending $3,000 a month on housing, 45% of gross pay and likely more than half of take-home pay, leaving little room for retirement savings, an emergency fund or repairs. The 28/36 rule is not a legal limit, but it is a sensible ceiling for a budget that still works when the water heater breaks.
Ways to Stretch an $80K Budget
- Cut monthly debt first. Above the $533 threshold, each $100 of monthly payments you eliminate adds about $13,000 of buying power.
- Mind the property tax rate. Taxes alone move the budget by about $43,000: roughly $262,000 at Hawaii's 0.27% effective rate versus $219,000 at Illinois's 1.92%. Within your area, compare counties and school districts.
- Compare loan types. FHA needs only 3.5% down, but its mortgage insurance lasts for the life of the loan when you put down less than 10%; conventional PMI can be canceled once you reach 20% equity. Our mortgage comparison calculator puts them side by side.
- Use down payment assistance. Many state and local programs serve moderate-income buyers, with income limits often tied to the area median income. See our guide to down payment assistance.
- Shop for the rate. Rates differ from lender to lender. Getting several quotes on the same day is the simplest way to lower the payment.
How We Calculated This
Maximum prices apply the 28/36 rule to gross income, with a 30-year fixed mortgage at 6.95%: Freddie Mac's Primary Mortgage Market Survey average for the week of September 17, 2026. Property taxes use each state's median real estate taxes paid divided by its median home value (U.S. Census Bureau, American Community Survey 2024); the national figure is 0.89%. Homeowners insurance is assumed at 0.6% of the price per year and private mortgage insurance at 0.6% of the loan per year on conventional loans with less than 20% down. FHA figures include HUD's 1.75% upfront premium (financed into the loan) and 0.55% annual premium. Closing costs are estimated at 3% of the price. Median listing prices are Realtor.com's for August 2026. Rates and prices come from FRED (Federal Reserve Bank of St. Louis), tax data from data.census.gov.
These are estimates for a buyer earning $80,000 with no HOA dues. Your insurance quote, credit score, local tax rate and lender will change the result, so run your own numbers in the home affordability calculator.
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