How much house can I afford using the 28/36 rule that lenders apply?

The 28/36 rule says your monthly housing costs should stay at or below 28% of gross monthly income, and total debt payments including the mortgage should stay at or below 36%. So on $8,000 gross monthly income, aim for about $2,240 in housing (principal, interest, taxes, insurance, and any HOA) and no more than $2,880 in total debt. Many loan programs allow higher ratios, sometimes up to 43% to 50% total, but borrowing to the maximum leaves little room for savings or surprises. Treat the rule as a ceiling, not a target, and buy below it if you value flexibility. Estimate a realistic price with the Home Affordability Calculator at wealthserene.com/tools/home-affordability.