How much house can I afford?

While you may have heard of the 28/36 rule, the ratio most lenders actually use to assess how much house you can afford is 36/43. This says your monthly mortgage costs (including property taxes and homeowner’s insurance) should be no more than 36% of your gross monthly income, and your total monthly debt (your anticipated mortgage payment plus other debts like car or student loans) should be no more than 43% of your pre-tax income.

A simple example

If you make $3,000 a month ($36,000 a year):

• Your mortgage payment should be no higher than $1,080 ($3,000 × 0.36).
• Your total monthly debt should not exceed $1,290 ($3,000 × 0.43).

The gap between those two numbers is the room left for your existing debts. If you already pay $300/month toward a car and credit cards, your mortgage budget shrinks accordingly.

Why the Florida numbers matter more here

The 36/43 rule is national, but two Florida line items can eat into your affordability faster than buyers expect:

• Homeowner’s insurance. Florida premiums run well above the national average. A high insurance quote can push your monthly housing cost over the 36% line on a home you’d otherwise qualify for.
• Property taxes and CDD fees. These are part of your monthly housing cost in the DTI math. A community with a CDD assessment can meaningfully change what you can afford.

Run your own numbers in our affordability calculator — it’s tuned for Florida taxes and insurance and lets you adjust the DTI ratio.

The bottom line

The 36/43 rule tells you what a lender will likely approve. What you should actually spend is a separate question — see how much should I spend on a house.

Want a personalized estimate? Ask a Florida agent or try the calculator.