How much house could your salary buy?
Income level isn’t the only factor that determines your home-buying budget. But it’s one of the most important, for sure.
Home buyers with lower income might be shopping in the $100K-$200K home price range, while high earners might be able to afford home prices in the millions.
So how do you know where your job falls on the home price scale? Every buyer is different, of course. But we’ve pulled together a few examples to show you how salary and housing budgets might stack up in today’s market.
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Estimated home prices and monthly payments calculated using The Mortgage Reports' Home Affordability Calculator. All examples assume a 30-year fixed mortgage rate of 6.0%. Your own interest rate, monthly mortgage payment, and home price will be different. See our full methodology below.
How much house can you afford with the most popular jobs in the U.S.?
Some of the most common jobs in the U.S., like working in retail or fast food, tend to have salaries on the lower end. But that doesn’t mean you can’t buy a house.
There are plenty of low-income home loans intended to help people in your shoes. And you could get an extra boost if you qualify for down payment assistance.
So don’t assume homeownership is out of reach. Instead, look into all the different options available — you might be surprised what you could afford.
| Job | Average Salary | Home Price | Down Payment | Monthly Payment |
| Retail salesperson | $31,900 | $113,000 | $10,000 | $890 |
| Home health or personal care aide | $29,400 | $100,000 | $10,000 | $800 |
| Cashier or fast food worker | $26,000 | $86,000 | $10,000 | $680 |
| Registered nurse | $77,600 | $346,000 | $25,000 | $2,500 |
| General operations manager | $115,300 | $540,000 | $40,000 | $3,900 |
Source: Most common jobs in the U.S. and average yearly salaries from the U.S. Bureau of Labor Statistics.
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How much house can you afford with the highest-paid jobs in the U.S.?
The highest-paid jobs in the U.S. have salaries well into the three-figure range, on average. And as your income level goes up, so does your home-buying budget.
Keep in mind that all these examples assume the same mortgage interest rate (6.0%) and a sizeable down payment. But your target home price could be higher or lower depending on your personal finances.
For instance, if you have excellent credit and low existing debts, you could be in line for a below-market mortgage rate. That would increase the amount you can borrow and/or lower your monthly payments.
Note that you’ll need a jumbo mortgage if you want to borrow more than the current loan limits allow.
| Job | Average Salary | Home Price | Down Payment | Monthly Payment |
| Anesthesiologist | $331,200 | $1,105,000 | $100,000 | $7,700 |
| Surgeon | $297,800 | $1,011,000 | $100,000 | $7,000 |
| Physician | $231,500 | $775,000 | $75,000 | $5,400 |
| Nurse anesthetist | $202,500 | $693,000 | $75,000 | $4,700 |
| Airline pilot, co-pilot, or flight engineer | $198,200 | $679,000 | $75,000 | $4,600 |
Source: Highest-paying jobs and average salaries sourced from the U.S. Bureau of Labor Statistics.
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How your job affects your home buying budget
Mortgage lenders want to be absolutely sure you can comfortably afford the monthly payments on your new home. Naturally, your salary and any other income sources play a huge part in that calculation. The more you earn, the more you can likely afford to pay for a house.
But income is just one factor out of many that a lender will look at.
You also need a decent credit score and at least the minimum down payment to qualify for a home loan — though you may be able to get help with the latter through a down payment assistance program (DPA).
Lenders also look closely at your debt-to-income ratio (DTI). This compares your monthly income against your existing debt load.
By evaluating what portion of your cash flow is already accounted for each month, the lender can determine how much room you have in your budget for a mortgage payment. For this reason, DTI is even more important than salary as a standalone number.
You can see What’s a good DTI for a mortgage? for more information.
What else impacts home affordability?
Many other factors, besides your salary, affect how much home you can afford. Here are some of the most important considerations you should be aware of, along with links for further information:
- Mortgage rate: The lower your mortgage rate, the less expensive your loan will be. And that means you can pay a higher price for your next home. You can check today’s mortgage rates here
- Credit score: The better your credit score is, the lower your mortgage rate will likely be, meaning you can afford a bigger loan amount. Discover how to boost your credit score here
- Down payment: A bigger down payment should boost your price range for a home. It can also help you get approved if your DTI or credit score is an issue. For example, with 3.5% down, you need a 580 FICO score for an FHA loan. But with 10% down, you might get approved with a 500 score. Find down payment assistance programs that could help you increase yours
- Your choice of mortgage type: Different types of mortgages have different qualifying criteria. And they each have pros and cons. So take time to identify the type of mortgage that suits your circumstances best
The homeownership rate in America was 65.8% in the second quarter of 2022. So most people can qualify for a mortgage. If you can’t right now, work on your finances so you’ll be able to do so one day.
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Methodology
We calculated home affordability by profession using a two-step process. First, we checked the nationwide average salaries for each job through the U.S. Bureau of Labor Statistics website. And then we ran those numbers through The Mortgage Reports’ Home Affordability Calculator.
All examples use the following assumptions:
- Thirty-year fixed mortgage rate of 6.0%
- Yearly homeowners insurance premium of $1,4001
- Yearly property tax rate of 1.07%2
1National average according to Bankrate. 2National average according to SmartAsset.
Home prices in the first example (most common jobs in the U.S.) were calculated using the “by income” tab of the mortgage calculator. These assume a total (back-end) debt-to-income ratio of 43% and an existing monthly debt load, before the mortgage payment, of $250.
Home prices in the second example (highest-paying jobs in the U.S.) were calculated using the “by monthly payment” tab of the mortgage calculator. These assume a 28% front-end debt-to-income ratio, meaning the projected mortgage payment is 28% of the home buyer’s pre-tax monthly income.
Our calculator is intended to give you a rough idea about rates, monthly payments, and the value of the home you can afford to buy. But you can’t be sure of any of those until you get preapproved by a mortgage lender.
Find your home-buying budget
If you’re ready to get serious about buying a home, the first step is to get preapproved for a mortgage. To start, you’ll fill out an initial loan application and provide a few supporting financial documents. Then your lender will be able to estimate your mortgage rate and tell you how much home you can actually afford.
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