How Much Income Do You Need for a $300k House?
A $300,000 home is roughly the median US starter home in 2026. To buy it comfortably you typically need a household income of $75K–$90K, depending on your down payment, interest rate, and other debts.
Quick answer
Most buyers need around $75K–$90K in household income to comfortably afford a $300K home with a 10% down payment at current rates (~6.5%). With 20% down and no other debts, $65K can work.
Estimated monthly cost of a $300K home
Assuming 10% down ($30K), a 30-year fixed mortgage at 6.5%, plus typical taxes and insurance:
- Loan amount: $270,000
- Principal & interest: ~$1,706/month
- Property taxes: ~$300/month (varies widely by state)
- Homeowner's insurance: ~$110/month
- PMI (since under 20% down): ~$135/month
- Total PITI: ~$2,251/month
Income required by ratio
Working backward from the $2,251 monthly housing cost using the 28/36 rule:
- 28% rule: ~$96,500 gross income to comfortably support the payment.
- Stretch (33%): ~$82,000 income.
- Aggressive (40%, max FHA-style): ~$67,500 income — works but tight.
How down payment changes the answer
- 5% down: monthly ~$2,400 → need ~$103K income (28% rule).
- 10% down: ~$2,250/mo → ~$96K income.
- 20% down: ~$1,920/mo (no PMI) → ~$82K income.
- 30% down: ~$1,720/mo → ~$73K income.
Other factors that move the number
- Existing debts ($400 car loan + $200 student loan = ~$15K higher income needed).
- Interest rates: a 1% drop in rate cuts the income requirement by ~$10–12K.
- State taxes and insurance: a $300K house in Texas vs Pennsylvania can differ by $400+/month.
- HOA fees in condos or planned communities add directly to housing cost.
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Open Affordability CalculatorFrequently Asked Questions
What credit score do I need?
Conventional loans typically need 620+; FHA goes down to 580 (or 500 with 10% down). Higher scores get better rates and lower the income requirement.
Can I afford a $300K house on $60K?
It's possible but tight — likely needs no other debts, a sizable down payment, and you'd be near the 40%+ ratio. Most planners would suggest waiting.
Is 5% down a bad idea?
It gets you in faster but costs more long-term — you pay PMI and start with less equity. If you can wait 1–2 years to reach 10–20% down, the math is much better.
Does my partner's income count?
If you're buying jointly and both names are on the loan, yes. Lenders combine both incomes and both debts.
Related Guides
More reading from the Mortgage & Affordability library.
The 28/36 Rule Explained
What the 28/36 rule means, how lenders use it, and how to apply it to your own home buying decision — with examples by income.
Read guideMortgage & Affordability5% vs 20% Down Payment: Which Is Better?
5% vs 20% down payment compared — monthly cost, PMI, total interest, and how long it takes to save the difference.
Read guideMortgage & AffordabilityHow Much House Can I Afford on $50k Salary?
What price home you can comfortably afford on a $50,000 salary — with realistic monthly payments, examples, and tips for stretching your budget.
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