How much house can I afford (the 28/36 rule)
Updated on August 2, 2026 · by Rafael Rossi
The classic lender benchmark is the 28/36 rule, applied to gross monthly income.
The two limits
- 28% for housing: payment + taxes + insurance (the "PITI") shouldn't exceed 28% of gross income.
- 36% for all debts: housing + car + cards + loans combined up to 36%.
Example
$8,000/month income: housing cap = $2,240; total-debt cap = $2,880. If you already pay $500 for a car, $2,380 remains for the house — the lower of the two limits wins.
From payment cap to home price
With your payment cap, run the mortgage calculator backwards: at $2,240/month (6.5% rate, 30 years, typical tax and insurance) you land around a $350–380k home with 20% down.
It's a ceiling, not a target
Staying under 28% leaves room for maintenance, repairs and surprises — homeowners spend more than renters beyond the payment.