The income needed for a $300,000 house in 2026 depends on your debt-to-income (DTI) ratio, interest rate, and total monthly obligations.
Income Needed for a $300,000 House in 2026
In this guide, we’ll break down the income required for a $300,000 home in 2026 using realistic numbers and lender standards.
Step 1: Estimate the Monthly Mortgage Payment
Let’s assume:
- Home Price: $300,000
- Down Payment: 10% ($30,000)
- Loan Amount: $270,000
- Interest Rate: 6.5%
- Loan Term: 30 years
Estimated Principal & Interest: ≈ $1,707 per month
Now add typical costs:
- Property Taxes: $300
- Home Insurance: $150
- PMI (if applicable): $120
Estimated Total Monthly Payment: ≈ $2,277
(This may vary by state. Use our Mortgage Calculator for exact numbers.)
Step 2: Understand Debt-to-Income Ratio (DTI)
Lenders typically allow:
- 28%–31% of income for housing (Front-End DTI)
- 36%–43% total debt (Back-End DTI)
Most conventional loans allow up to 43% DTI.
DTI Formula:
Total Monthly Debt Payments ÷ Gross Monthly Income = DTI %
Step 3: Calculate Required Income (No Other Debt)
If your housing cost is $2,277 per month:
To stay under 28% front-end DTI:
$2,277 ÷ 0.28 = $8,132 gross monthly income
That equals:
≈ $97,584 per year
So if you have no other debt, you would need about $98,000 annual income to comfortably qualify.
Step 4: Example With Other Debts
Let’s say you also have:
- Car payment: $400
- Student loans: $300
Total Monthly Debt = $2,277 + $700 = $2,977
Using a 43% back-end DTI:
$2,977 ÷ 0.43 = $6,925 gross monthly income
≈ $83,100 per year
So depending on debt and loan type, required income could range from:
$83,000 – $100,000 annually
FHA Loan Scenario
FHA loans allow higher DTI (sometimes up to 50%).
Using 50% DTI:
$2,977 ÷ 0.50 = $5,954 monthly income
≈ $71,448 per year
However, FHA includes mortgage insurance premiums, which increase monthly costs.
Factors That Change the Income Requirement
- Interest rate changes
- Property taxes (state-dependent)
- HOA fees
- Down payment size
- Credit score
- Loan program (FHA, VA, Conventional)
Quick Summary
To afford a $300,000 house in 2026:
- With no debt → Around $98,000 income
- With moderate debt → $83,000–$90,000 income
- FHA flexibility → As low as $71,000 (depending on approval)
Frequently Asked Questions
Can I buy a $300k house making $75,000 per year?
Possibly with low debt and FHA approval, but it may be tight depending on taxes and insurance.
Does down payment change income requirements?
Yes. A larger down payment lowers your loan amount and monthly payment, reducing required income.
What credit score do I need?
Conventional loans typically require 620+, FHA may allow 580+.
Before applying, use our Mortgage Calculator to estimate your exact payment based on your numbers.
Understanding your DTI and income requirements helps you shop confidently and avoid surprises during pre-approval.