How Much Mortgage Can I Afford in 2026?

The standard rule is that your mortgage payment should not exceed 28% of your gross monthly income (PITI -- principal, interest, taxes, insurance). Your total debt should not exceed 36%.

But the honest answer is more nuanced -- because property taxes in New Jersey are 6x higher than in Hawaii, and median home prices range from $178,000 in Mississippi to $756,000 in California.

Use our [Mortgage Calculator](/calculators/finance/mortgage-calculator) to get your exact PITI payment in seconds. Here is how the math works by income level:

Mortgage Affordability by Annual Salary (2026 Rules)

|---|---|---|---|

| $40,000 | $933/mo | $140,000 | Possible in Midwest |

| $55,000 | $1,283/mo | $191,000 | Rural/suburban areas |

| $70,000 | $1,633/mo | $244,000 | Most Midwest cities |

| $80,000 | $1,867/mo | $279,000 | Many Southern states |

| $100,000 | $2,333/mo | $348,000 | Most US markets |

| $120,000 | $2,800/mo | $418,000 | Above-average market |

| $150,000 | $3,500/mo | $522,000 | High-cost areas |

| $200,000 | $4,667/mo | $697,000 | Major metro areas |

> Important: These are PITI (principal + interest + taxes + insurance). Property taxes vary enormously by state -- a $300,000 home costs $540/year in Hawaii but $7,200/year in New Jersey. Use our [Down Payment Calculator](/calculators/finance/down-payment-calculator) to see how your down payment changes these numbers.

How the 28/36 Rule Works

The 28% front-end ratio means your total monthly housing costs (PITI) should not exceed 28% of your gross monthly income.

The 36% back-end ratio means all debt payments (housing + car + student loans + credit cards) should not exceed 36%.

Example on $100,000/year salary ($8,333/month gross):

Max housing payment (28%): $2,333/month
Max total debt (36%): $3,000/month
If you have $500/month in other debt: max housing = $2,500/month

Mortgage Affordability by US State (2026)

Your buying power varies dramatically by state due to property taxes and home prices. See our [state-by-state mortgage data](/calculators/finance/mortgage-calculator) for exact figures.

Most affordable states for homebuyers in 2026:

Mississippi: Median home $178K, property tax 0.65%, monthly PITI on $150K loan ~= $1,180
West Virginia: Median home $167K, low property tax, most affordable in nation
Indiana: Median home $225K, property tax 0.87%, excellent value

Least affordable states in 2026:

California: Median home $756K, monthly PITI on $600K loan ~= $4,400+ with taxes
Hawaii: Median home $839K, but property tax only 0.27% partially offsets cost
Massachusetts: Median home $562K, combined with high cost of living

The PMI Question: Should You Put 20% Down?

PMI (Private Mortgage Insurance) costs 0.5-1.5% of the loan annually and is required when you put less than 20% down. On a $320,000 loan, that's $133-$400/month -- significant but temporary.

Use our [Down Payment Calculator](/calculators/finance/down-payment-calculator) to model 10% vs 20% down and see exactly when PMI cancels and how much you save.

Checklist Before Applying for a Mortgage in 2026

1. Check your credit score -- 720+ gets the best rates; each 20-point drop costs about $50/month on a $300K loan

2. Calculate your DTI -- Use our [Mortgage Calculator](/calculators/finance/mortgage-calculator) to check the 28/36 rule

3. Save for closing costs -- 2-5% of purchase price on top of down payment

4. Get pre-approved -- Not pre-qualified; actual pre-approval with rate locked

5. Shop 3+ lenders -- Freddie Mac research shows shopping 3 lenders saves $3,000+ on average

How Much Mortgage Can I Afford in 2026? The Real Answer for Every US State