How Much Income For A $250K House in 2026?

To afford a $250,000 house, you'll typically need an annual income between $65,000 and $85,000. This range depends on your down payment size, existing debts, and current mortgage rates.

With today's mortgage rates around 6%, expect monthly payments between $1,600 and $1,800, including taxes and insurance.

The exact amount you need varies based on your debt-to-income ratio and local property taxes.

Understanding exactly how much income you need for a $250K home requires looking at multiple scenarios and factors that affect your buying power.

Baseline Income Scenario for a 250K House

With a 20% down payment ($50,000), current interest rates around 6.25%, and minimal existing debt, you'll need approximately $65,000 in annual income to afford a $250K house. This translates to $5,417 in monthly gross income.

Using the 28/36 rule, your maximum housing costs should stay under $1,517 monthly, while total debt payments shouldn't exceed $1,949.

How Down Payment Size Affects Income Requirements

Your down payment dramatically impacts the income you'll need. With just 3% down ($7,500), you'll need $80,000 to $90,000 annually due to private mortgage insurance (PMI) costs ranging from $1,094 to $3,563 per year.

The smaller your down payment, the higher your monthly obligations become.

Current Mortgage Rate Impact

As of February 2026, mortgage rates range from 5.99% to 6.23%. Each 1% change in interest rates affects your monthly payment by $164 to $200.

This means rate shopping can significantly impact your income requirements.

Debt-to-Income Ratio: The Real Qualifier

Your existing monthly debts must stay under $400 to comfortably accommodate $1,600 to $1,800 housing payments.

Lenders scrutinize your total debt obligations, including credit cards, student loans, and car payments.

Hidden Homeownership Costs

Beyond your mortgage payment, budget for additional costs averaging $15,979 annually:

• $10,946 for maintenance and repairs
• $2,003 for insurance
• $3,030 for property taxes

These costs vary significantly by location.

Geographic Variations

Property taxes alone range from 0.48% in Nevada to 2.23% in New Jersey. This means your $250K home could cost $1,200 annually in taxes in Nevada versus $5,575 in New Jersey.

Credit Score Considerations

Credit scores below 680 face higher interest rates and PMI costs, potentially increasing your required income by $10,000 to $15,000 annually to qualify for the same home.

The following table shows exactly how much annual income you'll need based on different down payment scenarios. These calculations assume a 6.25% interest rate, good credit score (680+), and minimal existing debt obligations.