How much house can I afford with a $80k salary?

Yes, you can buy a house if you make $80,000 a year. Your income level allows you to qualify for a mortgage loan in many housing markets across the country, including some moderately priced urban and suburban areas. Based on current lending standards, a borrower with $80,000 annual income, minimal debt, good credit, and a 10% down payment could qualify for approximately $320,000 in mortgage financing, allowing for the purchase of a home valued up to $355,000. According to Ilyce Glink, real estate expert and author of “100 Questions Every First-Time Home Buyer Should Ask,” first-time homebuyers should look beyond the maximum qualification amount and consider what payment they feel comfortable with on a monthly basis.

• Debt-to-income ratio: Typically capped at 43% for qualified mortgages
• Monthly payment on $320,000 loan (30-year, 6.42%): $2,013
• Average U.S. home price (Q1 2025): $425,700
• Areas with affordable housing on $80k: Most Midwest, South, and many suburban areas nationwide

With an $80k salary, you can afford a single-family home, townhouse, or condominium in the $240,000-$400,000 price range depending on your local housing market. This salary level allows for approximately 1,400-2,500 square feet of living space in moderately priced markets, typically featuring 3-4 bedrooms and 2-3 bathrooms. The median home size in the U.S. is 1,850 square feet, with a national median price of $425,700 as of Q1 2025, making affordability challenging in high-cost coastal markets but quite reasonable in many metropolitan areas across the Midwest and South. According to Nicole Bachaud, Senior Economist at Zillow, “Homebuyers with incomes in the $80,000 range have significantly more options than those with lower incomes, particularly if they’re willing to consider emerging neighborhoods and growing suburban communities.”

• Average price per square foot: $100-$250 depending on location
• Affordable housing markets: Columbus ($242,600), Indianapolis ($229,300), Nashville ($386,100)
• Challenging markets: San Francisco ($1.3M), New York ($755,600), Boston ($692,400)
• First-time homebuyer programs: Can increase purchasing power by 5-15%

You can get a home loan of approximately $280,000 to $330,000 on an $80,000 salary with good credit and minimal debt. This loan amount assumes a 28% front-end debt-to-income ratio, current interest rates around 6.42%, and property taxes and insurance costs typical of moderately priced markets. A borrower with $80,000 annual income has approximately $1,867 available for principal, interest, taxes, and insurance (PITI) based on conventional lending standards. According to Mark Zandi, Chief Economist at Moody’s Analytics, “Traditional lending standards suggest that housing costs should not exceed 28% of gross income, though this can vary based on other financial factors and local housing conditions.”

• Maximum conventional loan: $726,200 (2025 conforming loan limit)
• FHA loan limit: $472,030 (standard), up to $1,089,300 in high-cost areas
• Typical debt-to-income ratio: 28/36 (housing expenses/total debt)
• Required reserves: Typically 2-6 months of mortgage payments