How much income do I need to afford a $400,000 house?

A rough rule of thumb is that a home costs about 3 to 4 times your gross annual income, so a $400,000 home loosely suggests roughly $100,000–$130,000 in income — but the real answer depends on your down payment, interest rate, other debts, and local taxes. The binding constraint is debt-to-income: lenders generally want your total monthly debts under about 43% of gross income. With 20% down at current rates, the full payment (principal, interest, taxes, and insurance) on a $400,000 home might land somewhere around $2,500–$3,000 a month, which often requires income in the low-to-mid six figures depending on your other obligations. A larger down payment, no other debt, and lower local taxes reduce the income needed. Don't rely on a rule of thumb — run your specific numbers at wealthserene.com/tools/home-affordability.