What salary do I need for a $400k house? The 2026 math

To afford a $400,000 house at today's rates, you'd typically need an income of about $115,600 a year with 20% down or $135,100 with 10% down. That's based on the 28% housing rule, a 7.32% 30-year rate, 0.9% property tax and $2,400 a year in insurance. Big monthly debts can push the number higher. Test your own situation with our home affordability calculator.

Here's the reverse math step by step, plus how your debts, down payment and rate change the answer.

Step 1: the monthly payment on a $400,000 home

We start with the full monthly housing cost. That includes principal and interest, property tax, homeowners insurance and PMI when you put down less than 20%.

Item	20% down	10% down
Down payment	$80,000	$40,000
Loan amount	$320,000	$360,000
Principal and interest (7.32%, 30 years)	$2,198.18	$2,472.95
Property tax (0.9% of $400,000 ÷ 12)	$300.00	$300.00
Homeowners insurance ($2,400 ÷ 12)	$200.00	$200.00
PMI (0.6% of the loan ÷ 12)	$0	$180.00
Total monthly payment	$2,698.18	$3,152.95

Going from 20% to 10% down raises your payment by about $455 a month. About $275 of that is the bigger loan. The other $180 is PMI.

The 7.32% rate is the 30-year average from Freddie Mac for the week of October 22, 2026.

Step 2: the income needed at 28%

The 28% rule says your housing payment shouldn't exceed 28% of your gross monthly income. To find the income, divide the payment by 0.28, then multiply by 12.

• 20% down: $2,698.18 ÷ 0.28 × 12 = $115,636 a year
• 10% down: $3,152.95 ÷ 0.28 × 12 = $135,126 a year

So the difference between 10% and 20% down is almost $19,500 of required income.

Step 3: check the 36% total-debt limit

The second half of the 28/36 rule says all your debt payments, including housing, should stay at or under 36% of gross income. This only changes the answer if you carry other monthly debts.

Income needed at 36% = (housing payment + other debts) ÷ 0.36 × 12.

Other monthly debts	Income needed, 20% down	Income needed, 10% down
$0	$115,636	$135,126
$500	$115,636	$135,126
$800	$116,606	$135,126
$1,200	$129,939	$145,098

The higher of the 28% and 36% results is the one that counts. With 20% down, the 36% limit starts to bind once your other debts pass about $771 a month. With 10% down, the break point is about $901.

For example, with 20% down and $800 of other debts: ($2,698.18 + $800) ÷ 0.36 × 12 = $116,606. That's slightly more than the 28% figure, so it becomes your target.

How the rate changes the income you need

With 20% down, here's the income needed at the 28% limit for three rates:

Rate	Principal and interest	Total payment	Income needed
6.32%	$1,984.89	$2,484.89	about $106,500
7.32%	$2,198.18	$2,698.18	about $115,600
8.32%	$2,419.82	$2,919.82	about $125,100

Each 1% move in your rate changes the income needed by roughly $9,000 to $10,000. Shopping for a lower rate, or buying points, can have a real effect on what you qualify for.

Other things that move the number

• Property taxes. Our 0.9% figure is a rough US average. Some states and counties charge more than twice that, which can add hundreds a month.
• Insurance. Premiums in coastal or wildfire-prone areas can be far above $2,400 a year.
• HOA dues. A $300 monthly HOA adds about $12,900 to the income you'd need at 28%.
• PMI rate. PMI often runs 0.3% to 1.5% of the loan a year, depending on credit and down payment. We use 0.6%.
• Loan type. FHA loans may allow higher debt ratios but charge mortgage insurance (MIP), which works differently from PMI.

When PMI goes away

With 10% down, PMI doesn't last forever. Under the Homeowners Protection Act, you can ask your lender to cancel it once your balance reaches 80% of the original value, and it must end automatically at 78%. On this loan, that's roughly 8.7 years for 80% and about 10 years for 78% on the regular schedule. Extra payments can get you there sooner. The CFPB explains the rules at consumerfinance.gov.

Ways to buy a $400k house on less income

If your income falls short of these targets, a few levers can close the gap:

• Put more down. Each extra dollar down lowers the loan, and reaching 20% removes PMI. That's how the 20% scenario needs about $19,500 less income than the 10% one.
• Pay down other debts first. If the 36% limit is the one holding you back, clearing a car loan or card balance can lower the income you need.
• Shop for a lower rate. Get quotes from several lenders on the same day. Even a quarter point helps.
• Look at lower-tax areas. A county with a 0.6% property tax rate instead of 1.5% saves about $300 a month on a $400,000 home.
• Add a co-borrower. Lenders count both incomes on a joint application, along with both sets of debts.

Each of these changes the math, so rerun the numbers before you make an offer.

Cash you'll need upfront

Income is only part of the picture. You'll also need cash for:

Cost	20% down	10% down
Down payment	$80,000	$40,000
Closing costs (2%–5% of the loan)	$6,400–$16,000	$7,200–$18,000

Many lenders also like to see a few months of payments in reserve after closing.

A reality check on take-home pay

Lenders use gross income, but you pay bills with take-home pay. On $115,600, a single filer in a no-income-tax state takes home about $7,500 a month before retirement and health deductions. A $2,698 payment is about 36% of that.

That may work for you, or it may feel tight. It depends on your other goals, like retirement savings and childcare. Our paycheck calculator can show your take-home in your state.

Bottom line

At 7.32%, a $400,000 home typically needs about $115,600 of income with 20% down or $135,100 with 10% down, using the 28% rule. Debts, local taxes, insurance and your rate can push that up or down.

Start from your own income instead in the home affordability calculator. For a deeper look at a lower income, see how much house you can afford on $80k, or compare loan terms in our guide to the 15 vs 30-year mortgage.