Like most rules-of-thumb, they're 'fuzzy' and it's not about the total home value but the actual monthly cost of ownership. Pick a state though, say Missouri.

Like most rules-of-thumb, they're 'fuzzy' and it's not about the total home value but the actual monthly cost of ownership. Pick a state though, say Missouri. A married couple earning $65k will bring home $50k after tax. In the first example, with a mortgage + tax + insurance house cost of $2,200/month, their home costs will be about $25k/year leaving them about $25k for other spending. Not lavish, but likely doable. The real comparison though, is what they could rent an apartment for as the alternative to buying that house. In most places, they'd be paying nearly that same total in rent so it's basically a wash (assuming they can come up with the down payment).