How Much House Can I Afford? The 28/36 Rule Explained

The 28/36 rule is a mortgage affordability guideline: keep total housing costs under 28% of gross monthly income, and all debt payments combined under 36%. Housing costs here mean PITI — principal, interest, property taxes and insurance.

For a household earning $8,000 a month, 28% is $2,240 for housing. That number, plus today's rates and your down payment, determines the loan size a lender is likely to approve — and what you should comfortably pay.

Remember that qualifying for a loan and being comfortable paying it are different things. Test scenarios with our mortgage calculator, including property tax and insurance, before you set your budget.