How Expensive Can I Go?
How Expensive a Home Can You Afford? Full Table ($50K–$300K)
The table below uses the 28% rule, 6.875% 30-year fixed rate, 20% down payment, and no existing debts. It shows how expensive a home each income level can support.
| Annual Salary | Max Home Price | Down Payment (20%) | Cash Needed (incl. closing) | Monthly Total Housing |
|---|---|---|---|---|
| $50,000 | $221,000 | $44,200 | ~$52,000 | $1,167/mo |
| $60,000 | $265,000 | $53,000 | ~$63,000 | $1,400/mo |
| $70,000 | $310,000 | $62,000 | ~$74,000 | $1,633/mo |
| $80,000 | $354,000 | $70,800 | ~$84,000 | $1,867/mo |
| $100,000 | $443,000 | $88,600 | ~$105,000 | $2,333/mo |
| $120,000 | $531,000 | $106,200 | ~$127,000 | $2,800/mo |
| $150,000 | $664,000 | $132,800 | ~$158,000 | $3,500/mo |
| $175,000 | $775,000 | $155,000 | ~$185,000 | $4,083/mo |
| $200,000 | $885,000 | $177,000 | ~$212,000 | $4,667/mo |
| $250,000 | $1,106,000 | $221,200 | ~$262,000 | $5,833/mo |
| $300,000 | $1,328,000 | $265,600 | ~$316,000 | $7,000/mo |
Cash needed includes closing costs: NYC closing costs run 2–4% of purchase price for buyers. The "cash needed" column adds 3% to the 20% down payment for a total upfront cash estimate. Purchases over $1M also incur the mansion tax (1%+).
NYC-Specific Factors That Limit How Expensive a Home You Can Buy
1. Property Taxes Are High and Unavoidable
NYC property taxes average about 1.0% of purchase price annually for single-family homes and condos. On a $700K home, that's $7,000/year or $583/month — a significant chunk of your 28% housing budget. This directly limits the mortgage amount you can carry.
Note: Co-op shareholders pay property taxes indirectly through their monthly maintenance fee, which is partly tax-deductible as a pass-through of the building's real estate taxes.
2. Co-op Maintenance Fees Reduce Your Mortgage Budget
Because co-op maintenance fees are treated as housing expenses by lenders, every dollar of maintenance reduces your available mortgage budget by one dollar. A $1,200/month maintenance fee on a $150K salary income reduces your max loan from $531K to roughly $349K — a $182K difference in purchasing power.
3. Condo Common Charges Add to Monthly Costs
NYC condos charge monthly common charges of $400–$2,000+ for building services. Unlike co-op maintenance, condo common charges do not include property taxes — so condo buyers pay both. Luxury buildings in Manhattan or Brooklyn can have common charges of $3,000+/month, which massively limits the mortgage a buyer can carry.
4. Closing Costs Are Significantly Higher Than in Most Markets
NYC buyers pay 2–4% in closing costs (mortgage recording tax, title insurance, attorney fees, bank fees). Above $1M, the mansion tax adds 1–3.9%. On a $1.2M Manhattan purchase, total buyer closing costs can approach $80,000–$100,000 — a sum that must be liquid at closing, on top of the down payment.
5. Co-op Board Requirements Go Beyond Lender Qualification
For co-ops (roughly 75% of Manhattan's for-sale inventory), the board may require 20–30% down even if a lender would approve less, post-closing liquidity of 1–2 years of carrying costs, and a DTI ratio stricter than lenders require. A buyer approved by their bank at 35% DTI may be rejected by a co-op board wanting 25% or less.
Tips to Afford a More Expensive NYC Home
- Make a larger down payment: Every additional 5% down increases your maximum home price by roughly 6% (since it reduces the loan needed while keeping the payment the same).
- Target co-ops over condos: The 15–25% price discount on co-ops means a $600K co-op has equivalent living space to a $750K–$800K condo in many neighborhoods.
- Eliminate debt before buying: Paying off a $600/month car payment frees up that budget for housing, adding roughly $91K in buying power at today's rates.
- Look in emerging neighborhoods: Sunset Park, Bed-Stuy, and East Flatbush in Brooklyn; Astoria and Woodside in Queens; Riverdale in the Bronx all offer meaningful value relative to prime areas.
- Use first-time buyer programs: NYC's HomeFirst program offers up to $100K in down payment assistance, which directly adds to your purchasing power.
- Consider a 2-family house: In Queens and the Bronx, buying a 2-family home lets you rent out one unit — rental income can count toward qualifying income with 2 years of rental history.
2-family home strategy: A $700K 2-family house in Queens where the second unit rents for $2,500/month effectively reduces your net housing cost to $1,500–$2,000/month (after mortgage and expenses). Lenders can count 75% of rental income toward qualifying income, significantly boosting your affordable price range.
Calculate Your NYC Take-Home Pay
Know your exact monthly net income before committing to an expensive home. NYC taxes reduce take-home significantly.
NYC Paycheck Calculator