How Much House Can I Afford on $110,000 a Year?

At $110,000 annual income, you can typically afford homes in the $400,000–$435,000 range with 20% down under the 28/36 rule. Your $9,167 gross monthly income supports a maximum housing payment of $2,750/month (30% DTI). This puts the median home price of the United States ($420,000) within comfortable reach with minimal other debt.

The $110K buyer begins to access mid-range options in more expensive markets: Phoenix proper, Las Vegas, Nashville, Charlotte, and Raleigh city limits become more accessible (though premium neighborhoods remain out of reach). In the most affordable markets, $420,000 positions you well above median, opening up newer construction and larger homes.

At $110,000 income, the conforming loan limit ($766,550 for standard counties) is not a concern at your price range. However, if you're purchasing in a high-cost county (many areas of California, New York, Hawaii), higher conforming limits up to $1,149,825 may apply, which can be relevant if you're considering a starter home in an expensive area.

A $110,000 earner with a $60,000 down payment (roughly 14% on a $430,000 home) would be paying PMI. Consider whether saving toward a full 20% down ($86,000) makes sense — the additional savings period vs. the ongoing PMI cost is a decision that depends on your market's price appreciation rate. In stable markets, the PMI savings from reaching 20% often justify the wait.