How Much House Can I Afford on $85,000 a Year? About $316,506
Housing costs are capped at $1,983/month (28% of gross monthly income).
Updated for the 2026 tax year · Rates checked 14 October 2026
| Home price you can afford | $316,506 |
|---|---|
| Mortgage amount | $256,506 |
| Deposit | $60,000 |
| Monthly mortgage payment | $1,588 |
| Property tax & insurance (monthly) | $396 |
| Total monthly housing cost | $1,983 |
- Housing costs are capped at $1,983/month (28% of gross monthly income).
- Your deposit is 19% of the price; under 20% usually means mortgage insurance.
- At 6.3% the monthly payment would be about $1,983 (28% of gross income).
Your result, explained
Based on your income, debts and deposit, lenders would likely approve a home of up to about $316,506, with a $256,506 mortgage costing around $1,983 a month.
That is the maximum a lender allows, not necessarily what is comfortable. Leave room for savings, repairs and rate rises: many buyers aim 10–20% below the maximum. Paying off a car loan or credit card first is often the fastest way to raise your budget, because every monthly debt payment reduces what you can borrow.
Compare nearby amounts
| Amount | Home price you can afford |
|---|---|
| $75,000 | $285,143 |
| $80,000 | $300,824 |
| $85,000 | $316,506 |
| $90,000 | $332,187 |
| $95,000 | $347,869 |
The 28/36 rule
Most US lenders follow the 28/36 guideline: housing costs (mortgage, property tax, insurance) should stay under 28% of your gross monthly income, and all debt payments, including car loans and credit cards, under 36%. Some loan programs allow higher ratios, but these limits keep payments comfortable.