Know the home price you’re targeting? This hub works backward — from home price to the income you need. Every guide below includes 10% and 20% down scenarios, current-rate payment breakdowns, and income requirements.

Income Required by Home Price (2026 Rates)

At 6.5% rate, 30-year fixed, including estimated property taxes and insurance:

Home Price 20% Down Loan Amount Monthly Payment Income Needed (28%)
$200,000 $40,000 $160,000 ~$1,600 ~$69,000
$250,000 $50,000 $200,000 ~$1,950 ~$84,000
$300,000 $60,000 $240,000 ~$2,300 ~$99,000
$350,000 $70,000 $280,000 ~$2,640 ~$113,000
$400,000 $80,000 $320,000 ~$2,980 ~$128,000
$450,000 $90,000 $360,000 ~$3,320 ~$142,000
$500,000 $100,000 $400,000 ~$3,660 ~$157,000
$600,000 $120,000 $480,000 ~$4,340 ~$186,000
$700,000 $140,000 $560,000 ~$5,020 ~$215,000
$750,000 $150,000 $600,000 ~$5,360 ~$230,000
$800,000 $160,000 $640,000 ~$5,700 ~$244,000
$900,000 $180,000 $720,000 ~$6,380 ~$273,000
$1,000,000 $200,000 $800,000 ~$7,060 ~$303,000

Monthly payment includes estimated taxes (1.1% avg) and insurance (0.5% avg). PMI not included (assumes 20% down).

With 10% Down: How PMI Changes the Numbers

With 10% down, you borrow more and pay PMI (approx. 0.7% of loan amount annually):

Home Price 10% Down Loan Amount PMI/month Total Monthly Income Needed (28%)
$300,000 $30,000 $270,000 ~$158 ~$2,600 ~$111,000
$400,000 $40,000 $360,000 ~$210 ~$3,400 ~$146,000
$500,000 $50,000 $450,000 ~$263 ~$4,200 ~$180,000
$600,000 $60,000 $540,000 ~$315 ~$5,000 ~$214,000

PMI drops off once you reach 20% equity — typically after 5–8 years depending on appreciation and extra payments.

What Counts as “Income” to a Lender

Lenders accept multiple income sources:

  • W-2 wages — 2 years of consistent employment preferred
  • Self-employment income — 2-year average from tax returns (Schedule C/K-1), net of business expenses
  • Rental income — typically 75% of gross rent (to account for vacancies)
  • Investment/retirement income — dividend income, distributions, pension payments
  • Child support / alimony — counted if documented and likely to continue 3+ years

If your qualifying income is below the threshold for your target price, the most effective levers are: larger down payment (reduces loan amount), lower debt-to-income ratio (pay off debts), or co-borrower with additional income.

Price-Specific Income Guides

WealthVieu
Written by WealthVieu

WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.

The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy