If you earn $90,000 a year, you’re well above the U.S. median income, which is about $62,000. But you may be wondering how far that salary would take you in the housing market.
If you put 20% down and take a 30-year mortgage at 6.5%, $90,000 a year could comfortably afford you a home up to $356,000.
Of course, other housing expenses — including property taxes, homeowners insurance and utilities — will also impact how much you can afford.
Here’s how we estimated the amount of house you can afford on $90,000 a year.
Start with the 30% rule
You may be approved for a mortgage that’s more than you can actually afford, so it’s essential to calculate what you can reasonably pay each month before accepting any offers.
According to the U.S. Department of Housing and Urban Development, homebuyers shouldn’t put more than 30% of their gross monthly income toward housing expenses. That includes a mortgage payment, as well as:
- Private mortgage insurance: If you have a down payment of less than 20% on a conventional mortgage, you’ll typically need to pay private mortgage insurance (PMI), which protects your lender in case you default. PMI runs between 0.5% and 1.5% of your loan annually. On a $400,000 mortgage, that could be as much as $500 per month.
- Homeowners insurance: Most lenders require mortgage borrowers to have homeowners insurance. In July 2025, the average plan cost about $233 per month, but premiums can vary greatly, especially if you live in a region with severe weather, high crime or other risks.
- Utilities: According to Move.org, U.S. households spend an average of about $380 a month on electricity, gas and water. If you add HOA fees, phone and internet service, and other necessities, the total is closer to $600.
Accounting for these expenses, a household earning $90,000 per year can afford a maximum monthly mortgage payment of between $1,500 and $1,800.
Editor’s tip
Don’t forget to set aside cash for lender fees and closing costs, which can be as much as 6% of the home price. On a $350,000 house, that could mean an additional $21,000.
How big is your down payment?
The size of your down payment plays a significant role in how much you’ll pay in mortgage payments each month: A large down payment can get you a better rate and even preclude you from having to pay PMI. More importantly, it shrinks your mortgage principal, which means you’ll pay less interest over the life of the loan, potentially saving tens of thousands of dollars.
If you earn $90,000 per year and put 20% down upfront, you could afford a 30-year fixed-rate mortgage at 6.5% on a home that costs $356,000.
Most first-time homebuyers make a down payment of less than 20%, though. Below is a breakdown of how the size of a down payment affects what a homebuyer making $90,000 can afford.
| Down payment | Maximum monthly payment | Maximum home price |
|---|---|---|
| 5% | $1,800 | $299,800 |
| 10% | $1,800 | $316,500 |
| 20% | $1,800 | $356,000 |
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At CNBC Select, our mission is to deliver high-quality service journalism and comprehensive consumer advice to our readers, enabling them to make informed financial decisions. Every mortgage review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of financial products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content independently of our commercial team and any outside third parties, and we pride ourselves on maintaining high journalistic standards and ethics.
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Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
