What Salary for a $350K House? Get the Real Numbers

To afford a $350,000 house, you typically need an annual household income between $87,000 and $120,000. This range depends on your down payment size, credit score, existing debt, and current mortgage rates.

With a 20% down payment ($70,000) and current rates around 6.34%, you'd need approximately $90,000 annually following the 28/36 rule.

Smaller down payments (3-10%) require higher income due to PMI costs, while excellent credit can lower requirements.

Existing debt like student loans or credit cards increases the income threshold.

This is based on 2026 market conditions, and individual circumstances vary significantly.

Understanding how much income you need for a $350,000 house requires examining several key factors that lenders use to evaluate your mortgage application.

The 28/36 Rule and How It Applies to a $350K House

Most lenders follow the 28/36 rule when determining mortgage eligibility. This means no more than 28% of your gross monthly income should go toward housing costs, and no more than 36% toward total debt payments.

For a $350,000 home with a $280,000 loan (20% down) at 6.34% interest, your monthly principal and interest payment would be approximately $1,725.

Adding property taxes and insurance ($585 monthly), your total housing cost reaches $2,310 monthly, requiring an annual income of roughly $90,000.

Down Payment Impact on Income Requirements

Your down payment size significantly affects the income you'll need:

• With 20% down ($70,000), you need about $90,000 annually.
• Drop to 10% down ($35,000), and you'll need around $100,000 income due to private mortgage insurance (PMI) costs.
• With just 3% down ($10,500), expect to need $110,000 or more in annual income because PMI can add $200-400 monthly to your payment.

Credit Score's Role in Affordability

Your credit score directly impacts your mortgage rate and required income. Excellent credit (740+) qualifies for the best rates, while fair credit (680-699) faces higher rates that can increase your required income by $5,000-$10,000 annually.

A half-point rate increase can add $100+ to your monthly payment.

Additional Costs to Consider

Property taxes vary dramatically by state, from 0.26% in Hawaii to 2.08% in New Jersey.

Homeowners insurance ranges from $1,500-$5,000 annually depending on location and coverage.

HOA fees can add $200-$400 monthly in many communities.

Don't forget closing costs, typically 2-5% of the purchase price ($7,000-$17,500).

Geographic Market Variations

A $350,000 home represents different value propositions across markets. In some Midwest cities, this buys a luxury property, while in coastal areas like California or New York, it might secure a modest starter home.

Local income levels and cost of living affect affordability calculations.

Current Market Context

The housing affordability crisis has pushed the median first-time buyer age to 40, with average down payments of $30,400.

Income-to-price ratios sit at historic highs, making homeownership challenging for many Americans.

The table below shows exactly how much annual income you'll need for a $350,000 house based on different down payment amounts.

These calculations include principal, interest, property taxes, insurance, and PMI where applicable, using current mortgage rates of 6.34%.

Notice how smaller down payments significantly increase your required income due to PMI costs and larger loan amounts.

The 20% down payment option eliminates PMI entirely, making it the most income-efficient choice if you have the upfront cash available.