How much house can I afford on a $120,000 salary?
About $509,513, with 20% down at this week's average rate and no other debt. Here is how debt and a smaller down payment change it, and where that budget buys the typical home.1
By Sol Lakein, founder of Slower Sundays. Updated November 2026.
- $2,800/moPrincipal and interest28% of gross pay
How other debt changes it on $120,000
Car, student loan and card payments count against the 36% limit.1
| Other debt a month | Payment you can carry | Home price |
|---|---|---|
| $0 | $2,800/mo | $509,513 |
| $300 | $2,800/mo | $509,513 |
| $600 | $2,800/mo | $509,513 |
| $1,000 | $2,600/mo | $473,119 |
With a smaller down payment
Same payment, less cash up front, so the price drops. Loans under 20% down usually add mortgage insurance, not counted here.1
| Down payment | Cash down | Home price |
|---|---|---|
| 5% | $21,453 | $429,063 |
| 10% | $45,290 | $452,900 |
| 20% | $101,903 | $509,513 |
Where $120,000 buys the typical home
The 12 priciest metros that still fit, out of 91.2
| Metro | Typical home |
|---|---|
| Miami, FL | $490,000 |
| Colorado Springs, CO | $484,950 |
| Charleston, SC | $479,450 |
| Spokane, WA | $477,950 |
| Phoenix, AZ | $475,000 |
| Wilmington, NC | $471,489 |
| Fresno, CA | $469,500 |
| Madison, WI | $469,465 |
| Las Vegas, NV | $464,900 |
| Durham, NC | $460,135 |
| Sarasota, FL | $457,450 |
| Hartford, CT | $449,900 |
$120,000 salary: questions people ask
How much house can I afford on $120,000 a year?
About $509,513 with 20% down at 7.32%, if you have no other debt. That keeps principal and interest near $2,800 a month, 28% of gross pay. Property tax and insurance come on top.
How does debt change it on $120,000?
Every dollar of monthly debt payments above $800 lowers the payment you can carry. With $600 a month in other payments, the price falls to about $509,513.
Where does a $120,000 salary buy the typical home?
In 91 of the 115 metros we track, the median listing is at or under $509,513, including Miami, FL, Colorado Springs, CO, Charleston, SC.
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Notes on the numbers
- 1The 28/36 rule: housing payment up to 28% of gross monthly income, and all debt payments, housing included, up to 36%. Lenders count property tax and insurance inside the 28%; this calculator counts principal and interest only, so add those costs before you set a budget. Rate: Freddie Mac 30-year fixed average, week of October 22, 2026, 7.32%, 30-year fixed. Rate source
- 2Typical home: the median listing price for each metro, Realtor.com via FRED, September 2026.
Sources for this page
- Bankrate: What is the 28/36 rule?
- Mortgage rate: Freddie Mac 30-year fixed average, week of October 22, 2026
- Median listing price: Realtor.com via FRED, September 2026
- © Realtor.com, Housing Inventory Core Metrics (median listing price and median listing price per square foot), retrieved from FRED, Federal Reserve Bank of St. Louis