Housing is the single largest expense in most Americans’ budgets — typically 25-40% of gross income. Whether you’re calculating a down payment, comparing rent vs. buying, or trying to figure out what you can actually afford, this guide breaks down every housing cost with real numbers and links to detailed calculators.
20% Down Payment by Home Price
| Home Price | 20% Down | 10% Down | 5% Down | 3.5% (FHA) |
|---|---|---|---|---|
| $300,000 | $60,000 | $30,000 | $15,000 | $10,500 |
| $350,000 | $70,000 | $35,000 | $17,500 | $12,250 |
| $400,000 | $80,000 | $40,000 | $20,000 | $14,000 |
| $450,000 | $90,000 | $45,000 | $22,500 | $15,750 |
| $500,000 | $100,000 | $50,000 | $25,000 | $17,500 |
| $600,000 | $120,000 | $60,000 | $30,000 | $21,000 |
| $700,000 | $140,000 | $70,000 | $35,000 | $24,500 |
| $750,000 | $150,000 | $75,000 | $37,500 | $26,250 |
| $850,000 | $170,000 | $85,000 | $42,500 | $29,750 |
| $1,000,000 | $200,000 | $100,000 | $50,000 | $35,000 |
| $1,500,000 | $300,000 | $150,000 | $75,000 | $52,500 |
See detailed breakdowns: 20% on $300K, $350K, $400K, $450K, $500K, $550K, $600K, $700K, $750K, $850K, $1M, $1.5M.
Also see: How to Save for a Down Payment and Is $100K Down Payment Enough?.
Closing Costs by Home Price
| Home Price | Closing Costs (Est.) | As % of Price |
|---|---|---|
| $300,000 | $6,000-$15,000 | 2-5% |
| $350,000 | $7,000-$17,500 | 2-5% |
| $400,000 | $8,000-$20,000 | 2-5% |
| $500,000 | $10,000-$25,000 | 2-5% |
| $600,000 | $12,000-$30,000 | 2-5% |
| $750,000 | $15,000-$37,500 | 2-5% |
| $800,000 | $16,000-$40,000 | 2-5% |
See detailed breakdowns: Closing costs on $300K, $350K, $400K, $500K, $550K, $600K, $750K, $800K, Closing Costs by State.
Rent Affordability by Income
| Gross Salary | Max Rent (30%) | Comfortable (25%) | Learn More |
|---|---|---|---|
| $40,000 | $1,000 | $833 | Details |
| $45,000 | $1,125 | $938 | Details |
| $50,000 | $1,250 | $1,042 | Details |
| $55,000 | $1,375 | $1,146 | Details |
| $60,000 | $1,500 | $1,250 | Details |
| $75,000 | $1,875 | $1,563 | Details |
| $80,000 | $2,000 | $1,667 | Details |
| $100,000 | $2,500 | $2,083 | Details |
Income Needed for Rent Amount
| Monthly Rent | Income Needed (30% Rule) | Income Needed (25% Rule) | Learn More |
|---|---|---|---|
| $1,000 | $40,000 | $48,000 | Details |
| $1,200 | $48,000 | $57,600 | Details |
| $1,500 | $60,000 | $72,000 | Details |
| $1,750 | $70,000 | $84,000 | Details |
| $2,000 | $80,000 | $96,000 | Details |
| $2,500 | $100,000 | $120,000 | Details |
| $3,000 | $120,000 | $144,000 | Details |
| $3,500 | $140,000 | $168,000 | Details |
| $4,000 | $160,000 | $192,000 | Details |
| $5,000 | $200,000 | $240,000 | Details |
Home Affordability by Combined Income
| Combined Income | Home You Can Afford | Monthly Payment (Est.) | Learn More |
|---|---|---|---|
| $100,000 | $350,000-$400,000 | $2,500-$2,800 | Details |
| $150,000 | $525,000-$600,000 | $3,700-$4,200 | Details |
| $200,000 | $700,000-$800,000 | $4,900-$5,600 | Details |
| $250,000 | $875,000-$1,000,000 | $6,100-$7,000 | Details |
Can I Afford a House in…?
| City | Median Home Price | Income Needed | Learn More |
|---|---|---|---|
| Chicago | $340,000 | $85,000 | Details |
| Dallas | $380,000 | $95,000 | Details |
| Houston | $320,000 | $80,000 | Details |
| Los Angeles | $850,000 | $200,000+ | Details |
| New York City | $700,000 | $175,000+ | Details |
| San Francisco | $1,200,000 | $275,000+ | Details |
Rent vs. Buy Calculator
| City | Buy/Rent Ratio | Verdict | Learn More |
|---|---|---|---|
| Boston | 22x | Renting favored | Details |
| Los Angeles | 25x | Renting favored | Details |
| New York City | 28x | Renting strongly favored | Details |
| San Francisco | 30x | Renting strongly favored | Details |
| National avg | 16x | Buying favored | Calculator |
Price-to-rent ratios above 20x generally favor renting. Below 15x favors buying.
Property Taxes by State
The ten highest and lowest property tax states impact your total housing cost significantly:
| Lowest Tax States | Effective Rate | Highest Tax States | Effective Rate |
|---|---|---|---|
| Hawaii | 0.29% | New Jersey | 2.23% |
| Alabama | 0.41% | Illinois | 2.07% |
| Colorado | 0.51% | New Hampshire | 2.05% |
| Louisiana | 0.55% | Connecticut | 2.00% |
| South Carolina | 0.57% | Vermont | 1.83% |
See Property Tax by State for all 50 states.
Before You Buy: Checklists
| Step | Key Actions | Guide |
|---|---|---|
| 1 | Check credit score, save down payment, get pre-approved | Financial Checklist |
| 2 | Research neighborhoods, set budget, find agent | Things to Do Before Buying |
| 3 | Make offer, negotiate, complete inspection | Before You Buy |
| 4 | Improve value post-purchase | Home Value Guide |
Also see: Before You Sell a House, First-Time Home Buyer Programs, Home Equity Loan vs. HELOC, Things to Do Before Moving.
Quick Reference Table
| Topic | Key Number |
|---|---|
| Target rent % | ≤30% of gross income |
| Average down payment | 6-13% (first-time buyers) |
| Closing costs | 2-5% of home price |
| PMI (if <20% down) | $100-$300/month |
| 28/36 rule | ≤28% housing, ≤36% total debt |
| Price-to-rent ratio (buy cutoff) | Under 15x favors buying |
The Bottom Line
Housing affordability comes down to three numbers: your income, your savings, and your location. The same $70,000 salary that makes you house-poor in San Francisco buys you a comfortable three-bedroom in Indianapolis. Before making any housing decision, run the numbers on both renting and buying, factor in ALL costs (not just rent or mortgage), and use the 28% rule as a hard ceiling, not a target.
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