The 28% rule on $80K
Lenders use the 28/36 rule: your housing costs (PITI) shouldn't exceed 28% of gross income, and total debts shouldn't exceed 36%. On $80K, that's $1,867/month max for housing. If you have a $400/month car payment, lenders may cap your mortgage approval lower.
Home affordability on $80K by rate
| Rate | Max Home Price (20% down) | Monthly PITI |
|---|---|---|
| 5.5% | $365,000 | $1,860 |
| 6.0% | $340,000 | $1,858 |
| 6.5% | $310,000 | $1,849 |
| 7.0% | $280,000 | $1,836 |
The difference between 5.5% and 7.0% is $85,000 in buying power — that's a whole extra bedroom in most markets.
Tips to afford more on $80K
Pay off your car loan before buying (frees up DTI), save a larger down payment (reduces monthly payment), shop 3+ lenders for the best rate (even 0.25% matters), and consider an area with lower property taxes.