How much house can I afford on $170,000 a year?
A home up to about
$599,289
On $170,000 a year, you could afford a home up to about $599,289 with a 20% down payment of $119,858. The mortgage payment would be about $3,267 a month, or $3,967 with property tax and home insurance.
- Down payment
- $119,858
- Mortgage
- $479,431
- Payment a month
- $3,267
What it costs each month
| Mortgage payment | $3,267 |
| Property tax | $549 |
| Home insurance | $150 |
| Total | $3,967 |
|---|
How your down payment changes it
| Saved for a down payment | Home up to | Mortgage | Payment a month |
|---|---|---|---|
| $24,508 (5%) | $490,150 | $465,642 | $3,173 |
| $51,402 (10%) | $514,018 | $462,616 | $3,153 |
| $119,858 (20%) | $599,289 | $479,431 | $3,267 |
How it’s worked out
Lenders usually keep housing costs (mortgage, property tax, insurance and PMI) under 28% of your gross income, and all your debt payments under 36%. On $170,000, that's $3,967 a month for housing.
Assumes no other debts, 1.1% property tax, $1,800 a year home insurance and 0.5% PMI below 20% down, using the 28/36 guideline. Freddie Mac’s average 30-year fixed rate was 7.24% on 29 October 2026.
- Uses the 28/36 guideline: housing costs (mortgage, property tax, insurance, PMI and HOA fees) up to 28% of gross income, and all debt payments up to 36%. Lenders can approve higher ratios, so this is a comfortable limit rather than the most you could be lent.
- Assumes all your savings go towards the down payment. Closing costs, usually a few percent of the price, are extra.
- PMI is charged while your down payment is under 20%.
Frequently asked questions
How much house can I afford on $170,000 a year?
On $170,000 a year, you could afford a home up to about $599,289 with a 20% down payment of $119,858. The mortgage payment would be about $3,267 a month, or $3,967 with property tax and home insurance.
How much down payment do I need on $170,000?
With $24,508 saved, you could buy a home up to about $490,150. With $51,402 saved, you could buy a home up to about $514,018. With $119,858 saved, you could buy a home up to about $599,289.