Buying a Home on a $75,000 Salary: What’s Actually Realistic in 2026?
So, you’re making $75,000 a year. In many parts of the country, that is a fantastic, solid middle-class income. But as you’ve probably noticed, the housing market in 2026 isn’t the same as it was a few years ago. Between fluctuating interest rates and home prices that seem to have a mind of their own, the question isn’t just “Can I buy a house?” it’s “Can I buy a house without being ‘house poor’?”
Let’s break down the math, the rules of thumb, and the hidden numbers that the bank might not mention until you’re at the closing table.
The “Golden Rule”: The 28/36 Formula
Lenders generally look at two specific numbers when deciding if you’re a safe bet for a loan. This is known as the 28/36 rule:
- The 28% Rule: Your total monthly housing payment (Principal, Interest, Taxes, and Insurance) should not exceed 28% of your gross monthly income.1
- The 36% Rule: Your total debt payments (mortgage + car loans + student loans + credit cards) should not exceed 36% of your gross monthly income.
The Math for a $75,000 Salary:
- Gross Monthly Income: $6,2502
- Maximum Housing Payment (28%): $1,750/month3
- Maximum Total Debt (36%): $2,250/month
If you have zero other debt, you might be able to push that housing payment slightly higher, but $1,750 is your “sweet spot” for a comfortable life.
Mortgage Affordability for a $75k Salary: The “Cheat Sheet”
The amount of “house” you can buy depends heavily on the current interest rate. Here is how your buying power shifts based on a standard 30-year fixed mortgage with a 10% down payment.
| Interest Rate | Max Monthly (P&I) | Estimated Home Price | Estimated Loan Amount |
| 5.5% | $1,750 | $345,000 | $310,500 |
| 6.5% | $1,750 | $310,000 | $279,000 |
| 7.5% | $1,750 | $285,000 | $256,500 |
Pro Tip: Notice how a 2% jump in interest rates wipes nearly $60,000 off your home-buying budget. This is why timing and credit scores matter more than the sticker price of the home.
The “Hidden” Costs That Kill Your Budget
When people search for mortgage affordability for 75k salary, they often look at the mortgage payment alone. But your $1,750 monthly target has to cover more than just the loan.
1. Property Taxes & Insurance
Depending on where you live (looking at you, Texas and New Jersey), property taxes can add $300 to $600 to your monthly payment. Always calculate your “PITI” (Principal, Interest, Taxes, Insurance), not just the loan.
2. PMI (Private Mortgage Insurance)
If you put down less than 20%, you’ll likely pay PMI. For a $300k home, this could be an extra $100–$200 a month. It doesn’t go toward your house; it’s just protection for the bank.
3. The 1% Maintenance Rule
Homeownership is expensive. A good rule of thumb is to set aside 1% of the home’s value every year for repairs. On a $300,000 home, that’s $3,000 a year, or $250 a month. If you don’t budget for the leaking roof or the broken water heater, your $75k salary will feel very thin, very fast.
How to Increase Your Buying Power
If the numbers above feel a bit restrictive, you have three “levers” you can pull to change the outcome:
- The Debt-to-Income (DTI) Cleanup: If you pay off a $400/month car loan, that is $400 more the bank will let you put toward a mortgage. It’s the fastest way to increase your “Max Loan” amount.
- The Down Payment Boost: Every extra $10,000 you put down doesn’t actually lower your monthly payment as much as you’d think (usually only about $60–$80/month), but it does lower your LTV (Loan to Value) ratio, which can get you a better interest rate.
- Shop for the Rate: Don’t just go with your primary bank. A 0.5% difference in your interest rate is the difference between a vacation once a year and staying home.
The Verdict: What Should Your Target Be?
On a $75,000 salary, a home priced between $275,000 and $315,000 is typically the “Safe Zone.”
Going up to $350,000 is possible if you have no other debt and a large down payment, but you risk becoming “house poor”—having a beautiful home but no money left over to actually enjoy your life.
Calculate Your Specific Numbers
Every situation is different. Do you have two kids? Do you work from home? Do you have high healthcare costs? All of these change what “affordable” means for you.
Use our Mortgage Affordability Calculator to plug in your exact taxes, insurance rates, and current debts to see a real-time estimate of your buying power.
