$400,308
United States · Affordability
How much house before owner cost is 28% of gross income?
OwnerCost’s own 28% planning ceiling, applied to this market’s ownership costs. Below: how lenders here actually assess affordability, and what this estimate leaves out.
Example with the default inputs. Change any field to recalculate.
About $400,308
At this price, monthly owner cost is 28% of gross income in the United States.
$80,062
$2,567
How lenders in the United States assess affordability
The Consumer Financial Protection Bureau suggests homeowners consider keeping mortgage payments at 28–35% of gross income or less, and all debt payments at 36% or less. It presents these as planning benchmarks, not lending rules.
Source: CFPB — Debt-to-income calculator (planning benchmarks) (2018)
Lenders look at your debt-to-income ratio: all monthly debt payments divided by gross monthly income. Different loan products and lenders use different limits.
Source: CFPB — What is a debt-to-income ratio? (updated 30 Aug 2023)
OwnerCost uses 28% of gross income — the low end of the CFPB range — as its planning ceiling for the full monthly owner cost. It is an OwnerCost planning assumption, not a lender or regulatory limit.
Checked against these sources on 24 September 2026.
What this estimate includes
- Principal and interest at the rate you enter
- Property tax (1.1% of the price a year)
- Home insurance
- HOA
- PMI while the loan is above 80% of the price (illustrative)
What it does not include
- Your other debts — lenders count them; this estimate does not
- Lender stress or serviceability tests — the estimate uses the rate you enter, not a stressed rate
- Lender approval rules, credit history and deposit requirements
- Closing costs (see the Stamp page)
How we calculate
We search for the highest price at which principal and interest, property tax, insurance and PMI equal 28% of gross monthly income (OwnerCost's planning ceiling), using your down payment percentage and rate. Monthly rate = quoted annual rate ÷ 12. Payment = P·i / (1 − (1 + i)^−n) over n months.
Official sources
Rules checked against these sources on 24–25 September 2026.