🏠 How Much Housing Can I Afford?
Three industry-standard guidelines on what share of income should go to housing. Enter your monthly net income to see the dollar amounts.
Mortgage ≤ 28% of gross — traditional lender rule
Rent or mortgage ≤ 30% of net — Census 'not cost-burdened'
Total debt service ≤ 36% of gross
Which rule should I use?
The 28% rule — Most conservative. Your monthly mortgage (principal + interest + taxes + insurance) shouldn't exceed 28% of gross income. Common with traditional lenders.
The 30% rule — The most-cited general guideline. Rent or mortgage payment ≤ 30% of net income. Above this, the US Census considers a household "cost-burdened."
The 36% rule — Total debt (mortgage + car + student loans + credit cards) shouldn't exceed 36% of gross income. Useful when housing alone is fine but other debt is high.