How much house can you actually afford?
Enter your income, debts, and down payment to see your realistic price range — with real Oakland, Macomb, and Wayne County property-tax rates built in, using the same 28/36 rule lenders start from.
- Real MI county tax rates
- 28/36 DTI rule + PMI
- Instant — no email required
at about $2,103/mo, using the standard 28/36 debt-to-income rule.
Estimate only, using the 28/36 guideline. Your real limit depends on credit, loan program, and lender — some approve higher DTI. Michigan property tax on a purchase can rise after closing (taxable value uncaps). Not a loan approval.
How lenders decide what you can afford
Most lenders start with the 28/36 rule. Your total monthly housing payment (principal, interest, taxes, and insurance — “PITI”) should stay at or below 28% of your gross monthly income, and all your debt combined — housing plus car, student loans, and credit cards — should stay at or below 36%. This calculator finds the highest home price that keeps you inside both limits.
It’s a starting guideline, not a hard ceiling. Depending on your credit and loan program, some lenders approve back-end DTI as high as ~50%. But borrowing to your absolute max is rarely comfortable — the 28/36 number is a sane place to anchor.
Why Metro Detroit property taxes matter to your budget
Property taxes are a bigger swing factor here than buyers expect, and they vary by county — roughly 1.23% in Oakland, 1.28% in Macomb, and 1.51% in Wayneas effective rates. On a $350,000 home that’s a difference of nearly $1,000 a year between Oakland and Wayne, which directly changes how much home fits your monthly budget. The calculator pre-fills the rate by county so your number is realistic.
One thing to plan for: Michigan caps a home’s taxable value while it’s owned, then the value “uncaps” when it sells. That means your tax bill as the new owner is often higher than what the seller was paying — don’t budget off the listing’s current tax line. If you’ll live there, the Principal Residence Exemption lowers the rate versus a rental.
Home affordability questions
How much house can I afford on my salary?
A common rule of thumb is 3–4× your gross annual income, but the accurate answer depends on your monthly debts, down payment, interest rate, and local property taxes. This calculator applies the 28/36 debt-to-income rule with real Metro Detroit tax rates to give you a specific number rather than a rough multiple. Enter your details above to see it.
What is the 28/36 rule?
It's the debt-to-income guideline most lenders start with. Your monthly housing payment should be no more than 28% of your gross monthly income (the 'front-end' ratio), and your total monthly debt including housing should be no more than 36% (the 'back-end' ratio). Staying within both keeps your mortgage comfortable and improves your approval odds.
Does the calculator include property taxes and insurance?
Yes. It includes principal, interest, property taxes (pre-filled by Metro Detroit county), and homeowners insurance — the full PITI payment — plus PMI if your down payment is under 20% and optional HOA dues. That's what makes the affordability number realistic rather than just a principal-and-interest estimate.
How much down payment do I need in Michigan?
You don't need 20%. Many buyers use conventional loans with as little as 3–5% down, FHA loans at 3.5%, or VA/USDA loans at 0% down if eligible. Michigan also has first-time buyer programs (like MSHDA) offering down-payment assistance. Putting less than 20% down adds PMI, which this calculator estimates. Ask us about assistance programs — they can change what you can afford.
Is this the same as getting pre-approved?
No — this is an estimate, not a loan approval. A pre-approval involves a lender verifying your income, credit, and assets and issuing a letter you can shop with. This calculator gets you a realistic target first; when you're ready, we'll connect you with a trusted local lender to confirm your exact number.
Ready to see homes in your range?
Get a curated list of Metro Detroit homes in your budget and an intro to a trusted lender to lock in your real number. First-time buyer? We'll walk you through every step.
2032 E Square Lake Rd, Suite 400A, Troy, MI 48085