How Much House Can I Afford
on a $200,000 Salary?
On a $200,000 salary, the 28/36 rule limits your housing payment to $4,667/month. With 10% down at a 7% rate, that buys a home up to $572,000. Adjust for your down payment and existing debts below.
28/36 rule — $200,000 income
Maximum home price by rate and down payment
6.5% mortgage rate — 30-year fixed
| Down payment | Amount | Max home price | Monthly PITI |
|---|---|---|---|
| 3.5% down (FHA minimum) | $7,000 | $584,000 | $4,666/mo |
| 5% down | $10,000 | $587,000 | $4,670/mo |
| 10% down | $20,000 | $595,000 | $4,667/mo |
| 20% down (no PMI) | $40,000 | $612,000 | $4,670/mo |
7% mortgage rate — 30-year fixed
| Down payment | Amount | Max home price | Monthly PITI |
|---|---|---|---|
| 3.5% down (FHA minimum) | $7,000 | $561,000 | $4,665/mo |
| 5% down | $10,000 | $564,000 | $4,669/mo |
| 10% down | $20,000 | $572,000 | $4,665/mo |
| 20% down (no PMI) | $40,000 | $589,000 | $4,667/mo |
7.5% mortgage rate — 30-year fixed
| Down payment | Amount | Max home price | Monthly PITI |
|---|---|---|---|
| 3.5% down (FHA minimum) | $7,000 | $540,000 | $4,669/mo |
| 5% down | $10,000 | $542,000 | $4,664/mo |
| 10% down | $20,000 | $551,000 | $4,669/mo |
| 20% down (no PMI) | $40,000 | $568,000 | $4,669/mo |
Assumes no existing monthly debts and 30-year fixed mortgage. Property tax estimated at 1.1% annually. Homeowner insurance at 0.5%. PMI at 0.5% of loan for down payments below 20%.
PMI math on a $200,000 salary
Putting down less than 20% on a $200,000 income triggers PMI at roughly 0.5% of the loan per year. On a $572,000 home, that is $2,760/year in extra cost until you reach 20% equity. Saving to the 20% threshold eliminates this entirely and reduces monthly payment by $230/month.
Run your exact numbers
Do not include rent — only recurring debt obligations.
Less than 20% of the home price triggers PMI (private mortgage insurance).
Buying and selling within 5 years rarely covers transaction costs.
Frequently asked questions
How much house can I afford on a $200,000 salary?
On a $200,000 salary with 10% down and a 7% mortgage rate, you can afford a home up to $572,000. Using the conservative 20% down at 6.5%, that rises to $612,000. These figures assume no existing monthly debts. The 28/36 DTI rule limits your housing payment to $4,667/month.
What is the 28/36 rule for a $200,000 income?
The 28/36 rule says your housing costs should not exceed 28% of gross monthly income and total debts should not exceed 36%. On a $200,000 salary, that means maximum housing costs of $4,667/month and maximum total debt payments of $6,000/month. Most conventional lenders use these thresholds.
How much should I put down on a $200k salary?
With a $200,000 income, a 10% down payment is $20,000 and a 20% down payment is $40,000. The 20% threshold eliminates PMI (typically 0.5% of the loan annually), which saves $2,760/year at this income level. FHA loans allow 3.5% down but require mortgage insurance for the life of the loan.
Can I afford a house on $200k with existing debt?
Existing debts reduce your maximum home price directly. The 36% back-end DTI limit means all monthly debts — car payment, student loans, credit cards, and your new mortgage — cannot exceed $6,000/month combined. Each $500/month in existing debts reduces your maximum home price by roughly $70,000-$90,000 at current rates. Use the calculator above to model your exact situation.