How Much House Can I Afford with $80k Salary in California?

2025-01-01 • Calcely

If you earn $80,000 a year in California, affordability depends heavily on location. Coastal metros (San Francisco, Los Angeles) are much more expensive than inland cities. Below are practical rules of thumb and an example calculation to help you decide.

The 28/36 rule

Lenders typically recommend you spend no more than 28% of gross monthly income on housing and 36% on total debt. On $80k/year (~$6,667/month gross):

• 28% housing target: ~$1,867/month
• 36% total debt target: ~$2,400/month

Example (30-year, 6.5% APR, 20% down)

Home price: $400,000 — Down payment 20% ($80,000) — Loan $320,000

• Principal & interest ≈ $2,020/month
• • taxes & insurance (estimate) ≈ $350/month
• Total ≈ $2,370/month

That exceeds the $1,867 target, meaning in many CA metros $80k alone may be tight unless you have a higher down payment or lower-priced local market.

Tips

• Increase down payment to reduce monthly payments and avoid PMI.
• Consider more affordable suburbs or inland cities.
• Use our Mortgage Calculator to test scenarios.