How Much House Can You Really Afford on a $75k, $100k, and $150k Income?

Introduction:

“Afford” Means More Than “Qualify”

Many buyers ask: “How much house can I afford on my income?”
The most useful answer is: it depends on your total monthly payment and your budget resilience—not just a lender’s maximum.

In today’s market, small changes in mortgage rates can move monthly payments quickly. Freddie Mac’s PMMS has recently shown the 30-year fixed averaging around 6.06%–6.09% in mid-January 2026.

This guide gives a calculator-style framework for $75k, $100k, and $150k household income scenarios using educational assumptions you can adjust.

Step 1) Convert annual income to a monthly “gross” baseline

These are simple conversions:

• $75,000/year → $6,250/month gross
• $100,000/year → $8,333/month gross
• $150,000/year → $12,500/month gross

Affordability gets constrained when a large share of monthly income is already committed to:

• car payments,
• student loans,
• credit cards,
• childcare,
• insurance,
• and other fixed obligations.

That’s why the same income can support very different home prices.

Step 2) Understand what the “monthly housing payment” includes (PITI+)

Your total monthly housing cost usually includes:

• Principal & Interest (P&I)
• Property taxes
• Homeowners insurance
• HOA/condo fees (if any)
• (Sometimes: mortgage insurance, flood coverage, etc.)

Key point: A buyer focusing only on the mortgage payment is often missing large cost categories—especially in states with higher insurance or HOA prevalence.

Step 3) Use real-world cost baselines to sanity-check your assumptions

Public data helps you avoid fantasy numbers.

For Florida, Census QuickFacts (2019–2023) shows:

• Median owner costs with a mortgage: $1,860/month
• Median gross rent: $1,564/month

Market pages show higher current medians in many places:

• Zillow’s Florida “average rent” is shown at $2,300 (Zillow Rental Manager trends page, last updated Jan 21, 2026 on the page).
• Realtor.com’s Florida market page shows median sale price $350,000 and median rent $2,500 (as displayed on that page).

Educational takeaway: If your “planned” monthly payment is far below common real-world medians for your area, double-check taxes/insurance/HOA assumptions.

Step 4) Choose a conservative “housing budget range” (educational, not a rule)

Many households pick a housing range to protect cashflow. This is not advice—it’s a budgeting method.

For illustration only, here are three example ranges as a share of gross monthly income:

• 25% of gross income (more conservative)
• 30% of gross income (common budgeting heuristic)
• 35% of gross income (higher risk tolerance, less cushion)

Now apply:

$75k income ($6,250/mo gross)

• 25% → $1,563/mo
• 30% → $1,875/mo
• 35% → $2,188/mo

$100k income ($8,333/mo gross)

• 25% → $2,083/mo
• 30% → $2,500/mo
• 35% → $2,917/mo

$150k income ($12,500/mo gross)

• 25% → $3,125/mo
• 30% → $3,750/mo
• 35% → $4,375/mo

Notice how these ranges line up with real-world Florida rent medians on major data sources.

Step 5) Translate “monthly payment capacity” into a rough home price range

To estimate a home price from a monthly budget, you’d normally use:

• rate assumption (PMMS gives broad benchmarks),
• down payment assumption,
• taxes/insurance/HOA assumptions, and
• debt obligations (DTI, program rules, etc.).

Because program rules vary and this is educational content, the safest publisher-grade approach is:

1. Start with your target all-in monthly budget (from Step 4).
2. Subtract realistic non-mortgage costs (taxes + insurance + HOA).
3. The remainder is what’s left for P&I (mortgage payment).

Example (illustrative only, not a quote)

If a household targets $2,500/month total housing cost and expects:

• taxes + insurance + HOA = $700/month (varies widely),
  then P&I budget might be about $1,800/month.

That P&I budget corresponds to a certain loan amount depending on rate and term. Since rates vary, use a range rather than a single number. Freddie Mac’s PMMS shows benchmarks near ~6% recently, which can be used for scenario planning.

Step 6) Don’t ignore upfront cash: closing costs and points are common

Even if monthly affordability looks fine, you still need upfront funds.

CFPB reported (2022):

• Median total loan costs: $5,954
• 50.2% paid discount points, median $2,370 among those borrowers

This is a key reason buyers should plan for a buffer beyond the down payment.

Step 7) “$75k vs $100k vs $150k” — practical affordability insights

Below are neutral, educational patterns that often show up:

Income: $75k

• A realistic monthly housing range may overlap with Florida’s historical median owner costs with a mortgage (~$1,860) from Census QuickFacts.
• In higher-cost Florida metros or higher insurance areas, the all-in payment can exceed conservative ranges unless the purchase price, HOA, or insurance exposure is lower.

Income: $100k

• Many households can fit a payment range around $2,500/month (30% of gross), which lines up with Florida rent medians shown on Realtor.com’s page.
• This is often the income level where taxes/insurance/HOA become the deciding factors more than the home price headline.

Income: $150k

• Higher income expands options, but the most common mistake is “buying to the max” and losing flexibility.
• Households still benefit from stress testing costs for insurance renewals, HOA increases, and taxes.

Step 8) A simple 3-scenario stress test (educational)

Instead of one “affordable price,” build three scenarios:

1. Base case: your expected taxes/insurance/HOA
2. Higher-cost case: +10–20% on taxes/insurance/HOA (illustrative)
3. Rate sensitivity case: same home price, higher rate environment (PMMS benchmarks help you scenario plan)

This avoids pretending the future is certain.

Step 9) Why “what you can afford” differs from “what a lender may approve”

Affordability is personal budgeting and risk tolerance. Qualification depends on lender program rules, documentation, credit, and underwriting.

Because programs vary and change, publisher-safe content should avoid claiming a universal DTI cap or “you will qualify if…”. Instead:

• use neutral language (“lenders may consider…”),
• emphasize variability, and
• encourage readers to use standardized documents like the Loan Estimate for apples-to-apples comparisons (CFPB is the key source for consumer mortgage education).

Summary: A safe affordability method you can reuse

1. Pick a conservative monthly total housing budget range (Step 4).
2. Subtract realistic taxes/insurance/HOA to find your P&I budget (Step 5).
3. Compare multiple rate scenarios using PMMS benchmarks for context (Step 2).
4. Plan for upfront loan costs (CFPB medians show thousands) (Step 6).
5. Re-check assumptions with real-world market medians in your target location.

Written by

Asim Iftikhar — Real Estate Contributor, ACT Global Media
Florida Real Estate License: SL3633555 | Florida Notary Commission: HH 709161

Editorial Disclosure

This article is provided for general informational purposes only and does not constitute mortgage, credit, financial, tax, or legal advice.

Regulatory / Market Notice

Mortgage terms vary by lender, borrower qualifications, and laws/regulations. The examples below are illustrative only and not loan offers, not rate quotes, and not approval guarantees.

Disclaimer

This content is for general informational purposes only and does not constitute mortgage, credit, financial, tax, or legal advice. Mortgage terms vary by lender and borrower profile, and market conditions change. Consider consulting qualified professionals for guidance specific to your circumstances.