Well, at a 4% interest rate your person making 40k probably can afford a house priced at 3x salary. That would be about a 573 a month payment before taxes and

Well, at a 4% interest rate your person making 40k probably can afford a house priced at 3x salary. That would be about a 573 a month payment before taxes and insurance The person making 80k a year perhaps could afford a house more than 3x salary, but that wouldn't necessarily be a good idea, since buying as much house as you can afford is probably bad advice. I agree that the multiple is insufficient to determine what you can afford. I would certainly do a budget before deciding what I can afford, and a rent vs buy analysis. Though in my personal circumstances I would say somewhere between 2 and 3 times salary was realistic. At 2.75% interest I bought a house that was around 2.8 times salary. That was a good compromise on housing budget verse other things.