How much house can I afford on $80K a year?

On an $80,000 salary, you can typically afford a home in the $275,000 to $350,000 range, with a maximum housing payment of about $1,867/month at 28% DTI.

What are closing costs on an $80K salary?

Closing costs are based on home price, not salary. On a $300K home, expect $6,000-$15,000 in closing costs (2-5% of purchase price) on top of your down payment.

Do I need PMI on an $80K salary?

Only if you put less than 20% down. On a $300K home, 20% down is $60,000. If that is too much, PMI typically costs $100-$200/month and drops off once you reach 20% equity.

Salary Guide

6 min read

Can I Afford a House on an $80K Salary?

On an $80,000 salary, you can afford a home in the $240,000 to $345,000 range. Your max housing payment is about $1,867/month. Here's what lenders look for and how to maximize your budget.

The Quick Answer

On an $80,000 salary, you can likely afford a home in the $275,000 to $350,000 range, depending on your debt load and down payment.

Your Numbers at a Glance

Metric	Amount
Gross Annual Income	$80,000
Gross Monthly Income	$6,667
Max Housing Payment (28% DTI)	$1,867/mo
Max Home Price (28% front-end DTI)	$295,000
Max Home Price (36% back-end DTI)	$350,000
Down Payment at 5%	$14,750
Down Payment at 10%	$29,500
Down Payment at 20%	$59,000

What $80K Buys in Today's Market

At $80K, your 28% housing budget is $1,867 per month. That's enough for a solid home in most mid-tier markets. In expensive metros (San Francisco, New York, Boston), you'll still face challenges. In the Midwest, South, and many suburbs, you'll have plenty of options.

The PMI Question

At this income level, the down payment decision becomes important. Here's how PMI affects your payment on a $295K home:

Down Payment	PMI/Month	Total Payment
5% ($14,750)	$130	$2,175
10% ($29,500)	$90	$2,005
15% ($44,250)	$45	$1,870
20% ($59,000)	$0	$1,780

The jump from 5% to 10% down saves about $170/month. From 10% to 20% saves another $225/month — but requires an additional $29,500 in cash. Whether that's worth it depends on your savings timeline and what else you'd do with that money.

PMI isn't forever. On a conventional loan, it drops off automatically when you reach 78% LTV. On a $295K home with 10% down, that's roughly 7-8 years — or sooner if your home appreciates.

Closing Costs to Budget For

On a $295K home, expect closing costs of $5,900 to $14,750 (2-5%). Common costs include:

Origination fee: 0.5-1% of loan amount
Appraisal: $400-600
Title insurance: $1,000-2,000
Prepaid taxes and insurance: 2-6 months upfront

The Bottom Line

$80K is a strong income for homeownership. You have enough flexibility to choose between a lower price with more savings cushion, or a higher price that stretches your budget. The right choice depends on your risk tolerance and long-term plans.

Can I Afford a House on an $80K Salary?

On an $80,000 salary, you can afford a home in the $240,000 to $345,000 range. Your max housing payment is about $1,867/month. Here's what lenders look for and how to maximize your budget.

The Quick Answer

Your Numbers at a Glance

What $80K Buys in Today's Market

The PMI Question

Closing Costs to Budget For

The Bottom Line

Run the Numbers

How Much House Can I Afford?

PMI Calculator

Closing Cost Estimator