To afford a $300,000 house you need a salary of about $96,175 a year ($8,015 a month gross) under the 28/36 rule, with 10% down at an example 6.5% rate over 30 years and no other debts. The full payment is about $2,244 a month: $1,707 principal and interest plus $538 tax, insurance and PMI. With 20% down the salary needed drops to $83,227, but the cash down rises to $60,000.
Salary needed (example)
$96,175
6.5% · 30 years · 10% down · no other debts
Gross monthly income
$8,015
Example assumptions, not current market rates: property tax 1.1% of price a year, insurance $1,800 a year, PMI 0.5% of the loan a year below 20% down, 28% housing and 36% total-debt limits. Not a loan offer or financial advice.
Salary needed by rate and down payment
Each cell is the gross yearly income whose 28% housing limit covers the full payment on a $300,000 home with no other debts.
| Rate | 3.5% down | 5% down | 10% down | 20% down |
|---|
| 5.5% | $93,830 | $92,655 | $88,737 | $76,615 |
| 6.5% | $101,806 | $100,506 | $96,175 | $83,227 |
| 7.5% | $110,136 | $108,708 | $103,945 | $90,133 |
Moving from 10% to 20% down lowers the income needed from $96,175 to $83,227 at 6.5%: the loan shrinks by $30,000 and the $113 a month of PMI goes away. A one-point change in rate moves the income needed by roughly $7,604 at 10% down.
How other debts change it (6.5%, 10% down)
| Other monthly debts | Salary needed | Limit that binds |
|---|
| None | $96,175 | 28% housing |
| $300 | $96,175 | 28% housing |
| $600 | $96,175 | 28% housing |
| $1,000 | $108,136 | 36% total debt |
Small debts change nothing at first, because the 28% housing limit is the tighter one. Once other payments pass about 8% of income, the 36% limit takes over and every extra dollar of monthly debt needs about $2.78 more of monthly income.
How the $96,175 figure is built
With $30,000 down the loan is $270,000. Principal and interest at 6.5% over 30 years are $1,707 a month, property tax $275, insurance $150 and PMI $113, for $2,244 in total. Dividing by 28% gives $8,015 of gross monthly income, or $96,175 a year. A 15-year loan at the same rate needs about $123,835, because the same price is repaid twice as fast; see 15-year vs 30-year mortgages.
Nearby prices
Going the other way: how much house you can afford on $100k a year.
Before you rely on this number
Lenders apply their own program limits, and a payment you qualify for is not always one you are comfortable with: the ratios use gross pay and ignore childcare, retirement saving and repairs. Check a specific listing with the mortgage calculator, try your own figures in the salary needed calculator, and read the 28/36 rule guide.
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Frequently asked questions
How much do I need to make to afford a $300k house?
About $96,175 a year ($8,015 a month) in gross income, with 10% down at an example 6.5% rate over 30 years, 1.1% property tax, $1,800 insurance, 0.5% PMI and no other debts. The monthly payment is about $2,244, and 28% of $8,015 covers it.
What is the monthly payment on a $300k house?
With 10% down at 6.5% for 30 years: $1,707 principal and interest, $275 property tax, $150 insurance and $113 PMI, about $2,244 in total. Your own taxes, insurance and rate will change it.
Does 20% down lower the salary needed for a $300k house?
Yes. At 20% down the loan is smaller and PMI disappears, so the salary needed falls to about $83,227, but you need $60,000 in cash instead of $30,000.
Is the salary needed the same for a couple?
Yes, lenders add the gross incomes of everyone on the loan and all of their monthly debts, so a couple needs the same combined income as one person with the same debts.