How Much House Can I Afford in DFW?
Short answer: A common starting point is the 28/36 rule — spending no more than 28% of your gross monthly income on housing, and no more than 36% on total debt including housing. On a $75,000 household income, that’s roughly $1,750/month for housing, which in today’s rate environment translates to a home in the $280,000–$330,000 range depending on your down payment, taxes, and insurance.
The Quick Formula
| Household Income | Rough Monthly Housing Budget (28%) | Approximate Home Price Range* |
|---|---|---|
| $60,000 | $1,400 | $220,000–$260,000 |
| $75,000 | $1,750 | $280,000–$330,000 |
| $90,000 | $2,100 | $340,000–$390,000 |
| $110,000 | $2,570 | $420,000–$480,000 |
| $130,000 | $3,030 | $480,000–$580,000 |
| $150,000 | $3,500 | $560,000–$665,000 |
| $175,000 | $4,080 | $655,000–$775,000 |
| $200,000 | $4,670 | $745,000–$885,000 |
| $250,000 | $5,830 | $935,000–$1,105,000 |
*Assumes a 30-year fixed loan, moderate down payment, and typical DFW property tax and insurance costs. Your actual range shifts based on rate, down payment, and existing debt.
Why the Range, Not a Single Number
Two buyers with the same income can afford very different homes because of:
- Down payment size — More down means a smaller loan and lower monthly payment for the same price home.
- Existing debt — Car payments, student loans, and credit card balances all eat into your 36% total debt ceiling before housing even enters the picture.
- Property taxes — Texas has no state income tax, but property taxes run higher than many states, and they vary significantly by county and school district.
- Home insurance — Rising insurance costs in Texas have become a real factor in monthly payment calculations, more than in past years.
- Loan type — FHA, VA, and conventional loans all calculate affordability slightly differently, especially around mortgage insurance.
What DFW Home Prices Actually Look Like Right Now
- Fort Worth: median around $298,000–$348,000
- Dallas: median around $305,000–$420,000
- North Richland Hills and similar Mid-Cities areas: mid-$300,000s
- Higher-income buyers in areas like Southlake, Colleyville, or Westlake will find inventory that scales into the upper tiers of this table
- Outlying growth areas (Parker, Johnson, Hood counties): often lower entry prices with more land
The Number That Matters More Than “How Much House”
Lenders don’t approve you for a home price — they approve you for a monthly payment based on your income, debt, and credit. Two people asking “how much house can I afford” with the same income can get very different pre-approval numbers once a lender factors in their specific debt and credit profile.
The Real First Step
A pre-approval conversation with a lender takes your actual numbers — income, debt, credit score, and down payment — and turns this general framework into your specific number. That’s the number worth shopping with, not a rule-of-thumb estimate.
Bottom Line
The 28/36 rule gives you a starting range, but your real affordability number depends on your specific debt, credit, and down payment. Send me your rough income and what you have for a down payment, and I can help you figure out a realistic price range and connect you with a lender to get an actual pre-approval number.
Brent Reiter, REALTOR® | Brent Sells DFW
Real Estate. Real Results. Real DFW.
817-874-1602 | brent@brentsellsdfw.com
Serving Dallas-Fort Worth.
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