How much house can I afford on $200k income?

The practical answer

On $200,000 of household income, a realistic purchase usually lands between $700,000 and $950,000 — assuming typical debt levels and a down payment saved from a few years of surplus. Lenders may approve more; whether you should take it is a different question.

A worked example: a couple earning $200k with $150,000 invested, keeping a $30,000 cushion, on a 30-year fixed at 6.75% in a mid-tax southern metro, models out to roughly a $900,000 home with about $150,000 down (16%) and a payment near $5,600/month including property tax. That payment is workable at $200k income — but it leaves less room for saving than most buyers expect.

• At $200k income the jump from a $700k to a $900k home mostly comes out of your future investing capacity, not your lifestyle today.
• State income tax matters: the same salary supports meaningfully more house in Texas or Florida than in New York or California.
• HOA or condo fees act like extra mortgage: $500/month of fees reduces your affordable price by roughly $75,000.
• Modeling a wealth goal (say, $1M invested in 25 years) shows how much house you can buy while staying on track.

Related guides