How much house can you afford? Following the 28/36 rule, with your $80,000 income, you want your monthly housing payments to stay below $1,866. If we assume a 30-year loan at 6.5 percent interest, with a traditional 20 percent down payment, that means you can likely afford a home of about $310,000.
$80000 is very much an above-average annual salary for the US as a whole (to clarify another answer, $56000 or so is the average household salary in the US, not the average individual, personal income, which is quite a good deal less than that.)
An $80,000 annual salary would allow you to purchase a home priced up to around $300,000 — that is, if you follow the conventional guidance, which is that you spend no more than a third of your pretax income on housing costs.
The Pew Research Center defines the middle class as households that earn between two-thirds and double the median U.S. household income, which was $80,610 in 2023, according to the U.S. Census Bureau.
With an $80,000 annual salary in today's market, you can possibly afford a home priced between $263,000 and $336,000. This estimate will vary based on a borrower's down payment amount, existing debt payments, and current interest rates.
Depending on the size of your family or household, an $80,000 salary may comfortably cover your living expenses. If other people in your household, such as children, depend on your income, consider how much it costs to pay for their living expenses in addition to your own.
To find maximum rent using this rule, divide the household's annual gross income by 40. For example, a household that earns $80,000 per year can afford a maximum monthly rent of $2,000 (80,000 ÷ 40 = 2,000).
$80,000 a year is how much an hour? If you make $80,000 a year, your hourly salary would be $38.46.
The national median for living comfortably alone is $89,461, which suggests that a 50/30/20 budget might not be practical for most single people.
Other experts say that a vehicle that costs roughly half of your annual take-home pay will be affordable. Then some frugal personal-finance gurus say you should spend no more than 10%-15% of your annual income on a vehicle purchase.
The Bottom Line. On a $70,000 salary using a 50% DTI, you could potentially afford a house worth between $200,000 to $250,000, depending on your specific financial situation.
According to the 28/36 rule, you should spend no more than 28% of your gross monthly income on housing and no more than 36% on all debts. Housing costs can include: Your monthly mortgage payment. Homeowners Insurance. Private mortgage insurance.
Based on that figure, an annual income of $500,000 or more would make you rich. The Economic Policy Institute uses a different baseline to determine who constitutes the top 1% and the top 5%. For 2021, you're in the top 1% if you earn $819,324 or more each year. The top 5% of income earners make $335,891 per year.
In 2022, the national middle-income range was about $56,600 to $169,800 annually for a household of three. Lower-income households had incomes less than $56,600, and upper-income households had incomes greater than $169,800. (Incomes are calculated in 2022 dollars.)
The Bottom Line. To comfortably afford a 400k mortgage, you'll likely need an annual income between $100,000 to $125,000, depending on your specific financial situation and the terms of your mortgage. Remember, just because you can qualify for a loan doesn't mean you should stretch your budget to the maximum.
An annual salary of $80,000 is considered good for a single person and is higher than the average pay in the United States. But just how far that money will go for you depends on your financial obligations, where you live, and other factors.
With an $85,000 annual salary, you could potentially afford a house priced between $255,000 to $340,000, depending on your financial situation, credit score, and current market conditions. However, this is a broad range, and your specific circumstances will determine where you fall within it.
$80,000 yearly is how much per hour? If you make $80,000 per year, your hourly salary would be $38.46. This result is obtained by multiplying your base salary by the amount of hours, week, and months you work in a year, assuming you work 40 hours a week.
You can buy a $300,000 house with only $9,000 down when using a conventional mortgage, which is the lowest down payment permitted, unless you qualify for a zero-down-payment VA or USDA loan. Different lenders have different rules, but typically they require a 620 credit score for conventional loan approval.