How much house can I afford on $30,000 a year?
A home up to about
$86,360
On $30,000 a year, you could afford a home up to about $86,360 with a 20% down payment of $17,272. The mortgage payment would be about $471 a month, or $700 with property tax and home insurance.
- Down payment
- $17,272
- Mortgage
- $69,088
- Payment a month
- $471
What it costs each month
| Mortgage payment | $471 |
| Property tax | $79 |
| Home insurance | $150 |
| Total | $700 |
|---|
How your down payment changes it
| Saved for a down payment | Home up to | Mortgage | Payment a month |
|---|---|---|---|
| $3,532 (5%) | $70,633 | $67,101 | $457 |
| $7,408 (10%) | $74,073 | $66,665 | $454 |
| $17,272 (20%) | $86,360 | $69,088 | $471 |
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 $30,000, that's $700 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 $30,000 a year?
On $30,000 a year, you could afford a home up to about $86,360 with a 20% down payment of $17,272. The mortgage payment would be about $471 a month, or $700 with property tax and home insurance.
How much down payment do I need on $30,000?
With $3,532 saved, you could buy a home up to about $70,633. With $7,408 saved, you could buy a home up to about $74,073. With $17,272 saved, you could buy a home up to about $86,360.