Florida home affordability. Median home price in Florida: $390,000. Property tax rate pre-filled at 0.85% (effective annual rate, Tax Foundation 2024).

Home Affordability Calculator

Determine your maximum affordable home price using front-end (28%) and back-end (43%) debt-to-income limits.

Maximum affordable home price

$323,000

With $100,000 down.

Detailed results
Maximum loan amount	$223,000
Monthly PITI + insurance + HOA	$1,960
Front-end DTI limit (28%)	$1,960
Back-end DTI limit (43%)	$2,510

What this result means

You can afford up to $323k in home value with a monthly PITI+insurance+HOA of $1,960.

Affordability by Down Payment %

Maximum home price at different down payment percentages.

Affordability by Down Payment %. 6 rows, first 6 shown.
Down Payment %	Down Payment Amount	Max Home Price
5%	$25,000	$258,000
10%	$50,000	$280,000
15%	$75,000	$302,000
20%	$100,000	$323,000
25%	$125,000	$345,000
30%	$150,000	$367,000

How this is calculated

Front-end limit = gross income × 28%. Back-end limit = (gross income × 43%) − existing debts. Max PITI = min of both. Solve iteratively for max home price given property tax, insurance, HOA.

Home affordability is constrained by two lender ratios: front-end DTI (housing payment ÷ income) and back-end DTI (all debts ÷ income).

Front-end DTI (28% rule). Lenders typically cap your housing payment—PITI, insurance, HOA—at 28% of gross income. This ensures housing doesn't crowd out other expenses.

Back-end DTI (43% rule). All debt payments, including the new mortgage, should not exceed 43% of gross income. Existing car loans, student loans, and credit cards count here.

Which is binding? The lower of the two constraints determines your max housing payment. High existing debts can drag down your affordability even if you have high income.

PITI breakdown. Principal + interest (set by loan amount and rate), property taxes (1–2% of home value annually, varies by state), homeowners insurance (~$1–3k/year), and HOA fees (if applicable). All four factor into the DTI calculation.

Down payment impact. A larger down payment lowers your loan amount, reducing the monthly P&I and thus the total PITI. This can dramatically increase the max affordable price.

Assumptions

DTI limits: front-end 28%, back-end 43% (standard conventional lending guidelines).
Property tax calculated as a percentage of home value annually, prorated monthly.
Homeowners insurance and HOA are fixed inputs (in reality, they scale with home price and location).
No PMI modeled; assume 20%+ down or add 0.5–1% to loan for insurance if < 20%.
Interest rate held constant over the life of the loan.
Loan term is fixed (e.g., 30 years); no ARM (adjustable-rate mortgage) modeling.

Frequently asked questions

›What's included in PITI?

PITI stands for Principal, Interest, Taxes, and Insurance. Principal is the monthly portion of your loan going toward ownership. Interest is the cost of borrowing that money. Property taxes vary by location but typically run 0.5–2% of home value annually. Homeowners insurance is required by lenders and usually runs $1,000–$3,000 yearly. In addition to PITI, many lenders roll HOA fees (if any) into the DTI calculation. Together, these make up the total housing payment that gets measured against your income.

›Why does the lender care about back-end DTI?

Back-end DTI (your total debt-to-income ratio) shows lenders whether you can realistically manage all debts, not just the new mortgage. A back-end DTI of 43% means your total debt payments consume 43% of gross income, leaving 57% for taxes, utilities, food, insurance, healthcare, and savings. That 57% buffer is meant to cover the essentials you can't skip. Lenders use this to ensure you won't default when life happens — a job layoff, unexpected medical bill, or major car repair.

›Can I exceed these DTI limits?

Yes, sometimes. If you have compensating factors — exceptional credit score (740+), a very low loan-to-value ratio (25%+ down), large liquid reserves (6+ months of expenses in savings), or you're in a low-tax state — some lenders will stretch to 45–50% back-end DTI. Loan programs like VA loans or FHA loans also have slightly different rules. However, standard conventional lending sticks to 28% front-end and 43% back-end for a reason: borrowers who exceed these ratios default more often.

›How do property taxes affect affordability?

Property taxes are a huge variable and often overlooked. They range from less than 0.5% of home value annually in Hawaii to over 2% in New Jersey or Illinois. On a $400,000 home, the difference between 0.5% (Texas) and 2% (New Jersey) is $2,000/year versus $8,000/year — that's $500–$700/month hitting your PITI. Always check your target state and county's effective tax rate. This can easily make a $400k home unaffordable in a high-tax state but very affordable in a low-tax state, even if the income is identical.

›Should I put down 20% to avoid PMI?

It depends on your situation and rate environment. PMI (private mortgage insurance) typically costs 0.3–1.5% of your loan annually if your down payment is less than 20%. The conventional wisdom is that 20% down avoids PMI, but the math is more nuanced: a smaller down payment preserves your cash, which you can invest or keep as reserves. If mortgage rates are low and you expect strong investment returns, putting down 10% and investing the difference might outperform putting down 20% and carrying less cash. However, if rates are high and your other debts are substantial, maximizing down payment to reduce the monthly PITI payment may be smarter for your DTI ratio.