How much house can I afford on $85,000 a year?
A home up to about
$287,868
On $85,000 a year, you could afford a home up to about $287,868 with a 20% down payment of $57,574. The mortgage payment would be about $1,569 a month, or $1,983 with property tax and home insurance.
- Down payment
- $57,574
- Mortgage
- $230,294
- Payment a month
- $1,569
What it costs each month
| Mortgage payment | $1,569 |
| Property tax | $264 |
| Home insurance | $150 |
| Total | $1,983 |
|---|
How your down payment changes it
| Saved for a down payment | Home up to | Mortgage | Payment a month |
|---|---|---|---|
| $11,773 (5%) | $235,443 | $223,670 | $1,524 |
| $24,691 (10%) | $246,908 | $222,217 | $1,514 |
| $57,574 (20%) | $287,868 | $230,294 | $1,569 |
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 $85,000, that's $1,983 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 $85,000 a year?
On $85,000 a year, you could afford a home up to about $287,868 with a 20% down payment of $57,574. The mortgage payment would be about $1,569 a month, or $1,983 with property tax and home insurance.
How much down payment do I need on $85,000?
With $11,773 saved, you could buy a home up to about $235,443. With $24,691 saved, you could buy a home up to about $246,908. With $57,574 saved, you could buy a home up to about $287,868.