Home Affordability by Income

How much house can you afford on a $40,000 salary?

At this baseline, a household earning $40,000 a year doesn't reach the Comfortable or Stretch tiers — after typical debts and expenses, too little is left each month. A lender's debt-to-income ratios alone would allow a home up to $151,946, with no budget cushion.

Comfortable

Not reached at this baseline

Stretch

Not reached at this baseline

Risky ceiling

$151,946

Baseline assumptions

Take-home pay (estimated): $2,600/mo — an illustrative 78% of gross, not a tax calculation
Other debt payments: $450/mo
Living expenses: $2,750/mo — childcare $1,200, healthcare $200, groceries $700, transport $450, other $200
Down payment: $30,000
Loan: 30-year fixed at 6.89% (740-759 credit; static rate as of 2026-09-10)
Property tax & insurance: Texas rates, as a default reference point

Every assumption is editable — the full calculator opens pre-filled with these exact numbers.

A lender's ratios alone would allow up to $151,946 on this income — but once real expenses are counted, this household's own budget can't sustain a home purchase at this baseline. That gap is exactly the kind of overreach this calculator exists to flag before it becomes a monthly deficit.

Open the home affordability calculator with these numbers

Other income levels

$45,000 →

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