How Much House Can I Afford 2026? DTI + 50-State Calculator
Calculate maximum home price based on income, debts, down payment. 28/36 rule, FHA 43%, VA 41%, conventional 50%. 50-state property tax. Affordable/Stretch/Aggressive/Risky tiers + debt-payoff sensitivity.
Based on 6 official sources↓You can afford up to
$265,961
Conservative 28/36 · 28% of gross
Monthly breakdown
Tier comparison
| Tier | DTI | Monthly payment | Home price |
|---|---|---|---|
| Affordable (≤36%) | 36% | $2,400 | $311,320 |
| Stretch (43%) | 43% | $2,867 | $362,633 |
| Aggressive (50%) | 50% | $3,333 | $413,864 |
| Risky (57%) | 57% | $3,800 | $465,127 |
Loan type comparison
| Loan | Home price | PITI | PMI |
|---|---|---|---|
| Conventional | $265,961 | $1,867 | — |
| FHA | $289,416 | $2,067 | — |
| VA | $487,097 | $4,000 | — |
| USDA | $273,787 | $1,933 | — |
Cash needed at closing
Recommendation
Your conservative max home price is $265,961.49 — leaves room for retirement savings, emergencies, and lifestyle.
- TX property tax 1.74% (national avg 1.10%) — adds $1702/year vs national avg.
How much house you can afford is not the same number your lender will approve. Lenders maximise loan size for their commission; the conservative 28/36 rule maximises your savings rate, retirement contributions, and ability to absorb job loss. The gap between the two is enormous: at $80k income, conventional 28/36 caps housing at $1,867/month while modern lender max (50% back-end DTI) caps at $3,333/month. Same income, $1,466/month difference — over 30 years that is roughly $400,000 of forfeited retirement savings.
This calculator runs both directions and surfaces four affordability tiers (Affordable ≤36%, Stretch 43%, Aggressive 50%, Risky 57%) side by side so you can see where on the spectrum each home price sits. It models the four US loan types (Conventional, FHA, VA, USDA) with their distinct DTI ceilings, plus Brazilian SFH (30% Caixa) and SFI (35% private bank). Property tax varies dramatically: Hawaii 0.27% vs New Jersey 2.45% — a $9,000/year swing on a $400k home — so we ship 50-state data and let you override per county.
The headline math is iterative: PITI (principal+interest+tax+insurance) depends on home price, but the housing budget is fixed by DTI. The calculator iterates 8-12 cycles until the implied home price stabilises, then back-calculates the maximum loan from the standard PMT reverse formula. Sensitivity mode shows how much buying power you unlock by paying off each existing debt — usually the car loan beats the credit card by 2-3x in real-world cases.
The math behind home affordability
Front-end DTI (housing) vs back-end DTI (total debt). Front-end caps housing payment as % of gross income; back-end caps housing PLUS existing debts. Conservative 28/36: 28% front, 36% back. FHA: 31% front, 43% back (up to 56.9% with compensating factors). VA: no strict front, 41% back (up to 60%). The binding constraint is whichever ceiling is tighter — usually front-end for low-debt borrowers, back-end for borrowers with existing car loans, student loans, or credit card minimums. Critical cross-decision: if you are also shopping for a car, run the [Car Affordability Calculator](/en/car-affordability-calculator) FIRST — every $400/month of car payment cuts ~$60k off your home affordability ceiling under lender-max DTI. Buying the bigger car before locking the mortgage is one of the most common and expensive sequencing mistakes.
PITI iteration. Given a fixed monthly housing budget, the calculator estimates a starting home price (assumes ~80% of budget goes to P&I), computes property tax + insurance + HOA + PMI for that estimate, subtracts those from the budget to get the P&I cap, reverses the Price-PMT formula to find max loan principal, adds down payment to get implied price, repeats until the price stabilises within $100. Typical convergence: 8-12 iterations. PMI is added automatically (US, conventional, <20% down) at the industry-standard 0.7% of loan/year.
Reverse PMT formula. Standard mortgage payment is PMT = P × [r(1+r)^n] / [(1+r)^n − 1]. Solving for P: P = PMT × [(1+r)^n − 1] / [r·(1+r)^n]. The calculator uses the same lib/loans/ amortization module that powers the Loan and Auto Loan calculators, so the math is identical to a standalone mortgage calc — guaranteeing the affordability number aligns with the actual payment you would owe.
Property tax variation. US national median is 1.10%. Hawaii is 0.27% (lowest), New Jersey 2.45% (highest). On a $400k home that is $1,080/year vs $9,800/year, an $8,720/year swing — equivalent to $727/month, which compresses the home price you can afford. The calculator ships median effective rates for all 50 states + DC and accepts a manual override for finer county-level granularity. County-level variation is huge: within Texas (1.74% state median), Travis County (Austin) effective rates run 2.0-2.1% and Fort Bend County 2.5-2.7%, while rural counties drop to 1.2-1.4%. Within Florida, Miami-Dade is 1.0% but St. Lucie is 1.5%. Within Illinois, Cook County (Chicago) hits 2.1% and DuPage 2.3%. The 50-state defaults are weighted medians — verify your specific county at [propertyshark.com](https://www.propertyshark.com), the county assessor's website, or a recent Zillow listing in the neighborhood, then override the calc with the actual rate. A 0.5pp difference compounds to $50-80k over 30 years on a $400k home.
Compensating factors. Lenders allow higher DTI (up to 56.9% FHA, 60% VA, 50% conventional) when you have one or more compensating factors: credit score 720+, cash reserves of 3-6+ months PITI, large down payment 25%+, income stability 5+ years same employer, or energy-efficient property. The calculator uses this through the `dti_target = lender_max` setting — but warns explicitly that buying at lender max sacrifices retirement savings.
Brazilian SFH ceiling 2026. R$ 2.250.000 (raised from R$ 1.500.000 in 2024). Below the ceiling, Caixa Econômica offers subsidised rates 9-11.5% AA via the SBPE pool. Above the ceiling, only SFI (private bank) is available at higher rates. Comprometimento clássico Caixa: 30% da renda bruta. SFI privado: até 35-40% com compensating factors. This calculator models both and lets you compare side-by-side.
monthly_income × DTI_pct − existing_debts = housing_max P = PMT × [(1+r)^n − 1] / [r·(1+r)^n] home_price = P + down_payment PITI = P&I + tax + insurance + HOA + PMI iterate until |Δhome_price| < $100
- PMT
- monthly mortgage P&I payment cap (housing_max − non-PI)
- r
- monthly rate (US: APR/12; BR: (1+aa)^(1/12)−1)
- n
- total payments (term_years × 12)
- P
- maximum loan principal
- PMI
- private mortgage insurance (US, ~0.7% × loan/year if <20% down)
Practical examples
US — $80k single, no debt, Texas, conventional 28/36, 7% APR, $60k down
Setup: Single earner $80,000 gross/year. Zero existing debt (no car payment, no student loans, no credit cards). $60,000 saved for down payment + $10,000 reserves. Conventional 30-year fixed at 7% APR. Texas (1.74% effective property tax). Conservative 28/36 DTI — protects retirement savings.
**Monthly income:** $6,667. **Housing cap (28% front-end):** $1,867. **Iterating:** TX property tax adds $385/mo on a $266k home; insurance ~$111/mo; PMI $0 (60k > 20% of $266k = 22.5%). **Available for P&I:** $1,371. **Reverse PMT @ 7% / 360 mo:** max loan ~$206k. **Max home price ~$266k.** Total PITI: $1,867. Closing costs (3%): $7,977. Reserves recommended: $5,600. Total cash needed: $73,577 — user has $70k → $3,577 shortfall.
Takeaway: Texas's 1.74% property tax compresses affordability. The same scenario in Hawaii (0.27%) yields ~$288k — a $22,000 swing on a $266k home. The calculator surfaces this in the loan-type comparison so you can see explicitly that even staying conventional, switching to a state with lower property tax buys you $20-50k more home.
US — $120k joint, $400 car payment, FHA 3.5% down, lender max
Setup: Married couple, $80k + $40k = $120k joint gross. $400/month car payment (3 years left). $15,000 saved for down payment. FHA loan (allows 3.5% down, 580+ credit score). Targeting lender max DTI (56.9% with compensating factors — they have 720 credit + 6 months reserves).
**Combined monthly income:** $10,000. **FHA lender max 56.9%:** $5,690 total debt cap, minus $400 car = $5,290 housing cap. **Front-end FHA target 31%:** $3,100 — front binds. PITI $3,100 includes ~$330 property tax (national 1.1%), ~$140 insurance, ~$245 PMI (FHA MIP for life of loan). **Available for P&I:** ~$2,385. **Max loan @ 7% / 30y:** ~$358k. **Max home price ~$373k** (loan + $15k down). Compare to conventional 28/36: ~$280k — FHA buys $93k more home but at the cost of permanent MIP of ~$245/month ($2,940/year).
Takeaway: FHA's higher DTI ceilings + lower down payment requirements make it powerful for first-time buyers, but the lifetime MIP eats $30k-50k over a 10-year hold. Run the loan-type comparison to see whether the higher home price is worth the MIP. For couples with 20%+ available, conventional usually wins on total cost despite the lower max price.
BR — R$ 8k/mês, SFH Caixa 30%, 11% AA, R$ 50k entrada, condomínio R$ 500
Setup: Renda R$ 8.000/mês (R$ 96k/ano). Sem dívidas existentes. R$ 50k de entrada economizada + R$ 20k reservas. Financiamento SFH Caixa 30 anos a 11% AA. Imóvel em São Paulo capital — IPTU típico 1% sobre valor venal, condomínio R$ 500/mês. Comprometimento clássico Caixa: 30% da renda bruta.
**Renda mensal:** R$ 8.000. **Comprometimento 30%:** R$ 2.400 — front e back coincidem. **Iterando:** IPTU 1% × R$ 250k / 12 = R$ 208/mês; condomínio R$ 500 fixo. **Disponível para P&I:** R$ 1.692. **Reversão PMT @ 11% AA → 0,8735%/mês via taxa equivalente / 360 meses:** principal máximo ~R$ 178k. **Preço máximo do imóvel: ~R$ 228k-265k.** ITBI 3% (R$ 7.500) + registro 1,5% (R$ 3.750) = R$ 11.250 acquisição. Total cash necessário: R$ 61.250 — usuário tem R$ 70k → suficiente.
Takeaway: A regra Caixa de 30% de comprometimento é mais conservadora que padrões americanos (até 50%). Isso protege contra desemprego e Selic alta — em 2026 com Selic 14,75% e juros financiamento próximo a 11% AA, o limite menor é defensivo. Comparando com SFI privado a 35%, o usuário compraria ~R$ 290k (R$ 60k a mais), mas pagaria taxa 11.5-13% AA e perderia o subsídio SBPE.
Sensitivity — paying off $400/mo car loan unlocks $58k more home
Setup: Same $120k joint scenario as the FHA example, but on conventional lender_max (50% back-end). The $400/mo car payment eats into back-end DTI, making it the binding constraint at this income level.
**Without paying off car:** back-end cap $10k × 0.50 − $400 = $4,600 housing (front 31% × $10k = $3,100 binds). Max home ~$280k. **Paying off $400/mo car:** front-end still binds at $3,100, BUT now back-end becomes more permissive, allowing the user to comfortably qualify with stronger reserves. The real unlock comes from raising the dti_target to lender_max conventional (50% back-end): then back-end was $4,600 with car ($4,400 binds), now $5,000 without car ($4,900 binds since front is $3,100... actually front still wins). The cleaner case: at $80k single income with $400 car payment, conv lender_max gives ~$2,067 (front 31%) vs $3,333 (back 50%) − $400 = $2,933, so front binds. Pay off car: front still binds at $2,067. So *front-binding* scenarios do not benefit from debt payoff. **Real benefit:** at $80k single + $1,500/mo total existing debt + lender_max, back-end ($3,333−$1,500 = $1,833) binds below front-end ($2,067). Pay off all $1,500: jumps to $2,067. Buying power increase: ~$28k home price.
Takeaway: Sensitivity matters most for borrowers whose back-end DTI is the binding constraint. Run the calculator with your real numbers — if it says front-end is binding, debt payoff has zero effect on max price (paying off debt is still good for financial health, just not for buying power in this specific case). The widget shows binding_constraint explicitly so you know which lever moves the needle.
Common pitfalls when calculating home affordability
- Lender max ≠ comfortable. A 50% DTI mortgage approval means you spend 50 cents of every gross dollar on housing + debt. Add 20-30% federal+state taxes, leaves 20-30% for everything else: groceries, transportation, retirement, healthcare, kids, emergencies. Buying at lender max is a recipe for one bad event (job loss, medical bill, divorce) wiping you out. Stay at 28/36 unless you have a clear escape valve.
- Property tax variation is bigger than you think. A $400k home in NJ (2.45%) vs HI (0.27%) is $8,720/year — $260k of additional tax over a 30-year hold, equivalent to a $260k smaller mortgage. State choice may matter more for affordability than negotiating the home price itself.
- Cash needed at closing exceeds your down payment. Closing costs are 3% of price US (or ITBI 3% + registro 1.5% BR), plus 3 months PITI in reserves recommended. On a $300k home: $60k down + $9k closing + $6k reserves = $75k total. Many first-time buyers see "20% down" as the only barrier and forget the rest.
- PMI is a long-term cost, not a fee. US conventional <20% down adds ~0.7% of loan/year as PMI until you hit 20% equity. On a $300k loan that is $175/month for typically 5-9 years = $10,500-19,000 total. FHA MIP runs for life of loan if down <10% — even worse. Run the loan-type comparison to see PMI/MIP exposure.
- DTI uses gross, not net. Lenders compute DTI as monthly debt / GROSS monthly income. But you live on NET income. A 36% gross DTI is roughly 50% NET DTI for most middle-class earners. The calculator shows estimated net to remind you what the payment really feels like.
When this calculator gives misleading results
Self-employed or 1099 income: lenders typically average 2 years of tax-return income (less than current run-rate). The calculator uses the gross income you enter — if you put your 2026 projection it will overstate affordability. Use 2-year average instead.
Variable income (commission, bonuses): lenders discount these heavily or ignore them. The calculator does not — adjust gross_annual_income downward to reflect what your lender will actually use (usually 75% of variable comp).
Investment property or second home: DTI rules are stricter (typically 25-40% lower limits), and rental income only counts at 75% of lease value. This calculator is for primary residence only.
ARM (adjustable-rate mortgage): the calculator assumes fixed-rate amortisation throughout the term. ARMs reset and can blow through DTI later. Use only for the introductory rate period and re-run for post-reset.
High-cost-of-living markets where 50% DTI is common: SF, NYC, Boston routinely qualify buyers at 45-55% back-end. The calculator allows lender_max but warns. The math is the same — the lifestyle cost is just very high.
Frequently asked questions
What is the 28/36 rule?▾
Front-end DTI (housing as % of gross income) ≤ 28%; back-end DTI (housing + all debt as % of gross income) ≤ 36%. Industry standard from Fannie Mae for low-risk conventional underwriting. Modern lender max goes to 31%/50% with compensating factors, but 28/36 protects retirement savings.
How is FHA different from conventional?▾
FHA allows 3.5% down (vs 5-20% conventional) and up to 56.9% back-end DTI with compensating factors (vs 50% conventional). Trade-off: FHA charges MIP for the life of the loan if down <10% (conventional PMI drops at 20% equity). FHA also has loan limits ($541,287 low-cost / $1,249,125 high-cost areas in 2026).
Why does property tax vary so much?▾
States fund schools and local government primarily through property tax (no state income tax = high property tax, like Texas at 1.74% or NH at 2.18%). States with income tax + sales tax run lower property tax (Hawaii 0.27%, California 0.74%, both with high state income tax). The calculator ships median effective rates by state but counties vary 2-3x — confirm with your county assessor.
What is comprometimento (BR) and how does it differ from DTI?▾
Comprometimento is total committed monthly housing payments as % of gross income — Caixa SFH default 30%, SFI privado up to 35-40%. Equivalent to American back-end DTI but typically capped lower (American conventional goes to 50%). The lower BR ceiling reflects higher rates (11% AA vs 7% APR) and Selic-driven income volatility — defensive underwriting.
What is the new R$ 2.25M SFH ceiling 2026?▾
In 2024 the SFH ceiling was raised from R$ 1.5M to R$ 2.25M (Resolução CMN). Below this you can use SBPE (subsidised pool, 9-11.5% AA via Caixa). Above it, only SFI privado (12-15% AA, mais flexível). The new ceiling opens leveraged-purchase strategies for upper-middle-class buyers in São Paulo / Rio metro markets.
Should I include my spouse income if filing single?▾
Only include income you can document via tax return / pay stub for the lender. If your spouse is on the loan, joint income applies. If only you sign, only your income counts. The calculator uses is_joint_application to switch — set true ONLY if both spouses are on the mortgage application.
What if my credit score is below 620?▾
Most conventional lenders disqualify <620. FHA allows down to 580 (3.5% down) or 500-579 (10% down). The calculator warns when score <620 + jurisdiction = US. Below 580, expect 10%+ APR rates that may push affordability lower than the headline DTI suggests.
How does paying off existing debt change my affordability?▾
Only when back-end DTI is the binding constraint. If front-end (housing-only) caps you, debt payoff does not increase max price. Run the calculator with mode=sensitivity to see the actual buying-power gain from paying off each debt — usually the car loan beats credit cards 2-3x in real-world cases because car payments are larger.
Sources & references
Cross-check every number in this calculator against the primary sources below.
- OfficialFannie Mae Selling Guide B3-6-02 (DTI ratios)In force: 2026
- OfficialHUD 4000.1 — FHA Single Family HandbookIn force: 2026
- OfficialVA Lender's Handbook M26-7 — Chapter 4 (Residual Income)
- OfficialUSDA Rural Development HB-1-3555
- OfficialCaixa Econômica Federal — SFH 2026In force: 2026
- ReferenceTax Foundation — State Property Tax ComparisonIn force: 2025
- OfficialCFPB — Mortgage Pre-Approval Guide
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