How much house you can afford in Chicago depends mostly on your income, your other debts and the mortgage rate: at the Freddie Mac average of 7.18% for a 30-year fixed loan (released November 5, 2026), a buyer earning $100,000 a year with no other debts and 20% down could afford a Chicago home priced at about $483,000 with total debt payments at 36% of gross income, or about $621,000 at 45%, before homeowners insurance and condo assessments.
Last reviewed November 6, 2026 · Chicago First Time Home Buyer editorial team
These are estimates from a published formula, not a pre-approval. A lender decides what you qualify for after reviewing your credit, income, debts and savings. The table and the worked example below show every assumption, so you can redo the math with your own numbers.
Chicago home affordability at a glance
| Assumption | Value used | Geography | Source and reference date |
|---|---|---|---|
| Mortgage rate, 30-year fixed | 7.18% a year | U.S. average (lower 48 states and D.C.), used for Chicago | Freddie Mac PMMS, released Nov. 5, 2026 [1] |
| Down payment | 20% of the price (loan = 80%) | Assumption | Matches the 75%–80% loan-to-value loans the PMMS average covers [2] |
| Total debt-to-income (DTI) limit, lower case | 36% of gross monthly income | Fannie Mae loans, nationwide | Fannie Mae maximum for manually underwritten loans, Selling Guide B3-6-02 (Apr. 2, 2025) [4] |
| Total DTI limit, higher case | 45% of gross monthly income | Fannie Mae loans, nationwide | Manual underwriting maximum when credit score and reserve requirements are met; automated (DU) loans allow up to 50% [4] |
| Property tax allowance | $383.08 a month ($4,597 a year) | City of Chicago homeowners | Median Chicago homeowner bill, tax year 2025, Cook County Treasurer (August 2026) [5] |
| Not included | Homeowners or condo insurance, condo or HOA assessments, mortgage insurance | — | Add your own quotes; see the adjustment below |
| Effect of each extra $100 a month in housing costs | About $18,450 less home price | Our calculation | Same rate, term and down payment as the table |
| Conforming loan limit, one unit | $832,750 loan (2026) | Most U.S. counties, including Cook County | FHFA, Nov. 25, 2025 [6]; every loan in the table is below it |
How much house can I afford in Chicago on my income?
The table assumes no car, student loan or credit card payments. If you have them, subtract them first (see the worked example).
| Gross annual income | Housing payment at 36% DTI | Home price at 36% DTI | Housing payment at 45% DTI | Home price at 45% DTI |
|---|---|---|---|---|
| $50,000 | $1,500 a month | about $206,000 | $1,875 a month | about $275,000 |
| $60,000 | $1,800 a month | about $261,000 | $2,250 a month | about $344,000 |
| $75,000 | $2,250 a month | about $344,000 | $2,812.50 a month | about $448,000 |
| $90,000 | $2,700 a month | about $428,000 | $3,375 a month | about $552,000 |
| $100,000 | $3,000 a month | about $483,000 | $3,750 a month | about $621,000 |
| $125,000 | $3,750 a month | about $621,000 | $4,687.50 a month | about $794,000 |
| $150,000 | $4,500 a month | about $760,000 | $5,625 a month | about $967,000 |
How is the home price calculated?
- Housing budget = gross monthly income × DTI limit − other monthly debt payments.
- Principal and interest budget = housing budget − monthly property tax − monthly insurance and assessments (zero in the table).
- Loan amount = principal and interest budget ÷ (i ÷ (1 − (1 + i)−360)), where i is the annual rate ÷ 12. At 7.18%, i = 0.0059833 and the divisor is 0.0067743 (the monthly payment per dollar borrowed).
- Home price = loan amount ÷ 0.80 (20% down).
Worked example: you earn $90,000 a year and pay $400 a month on other debts. Gross monthly income is $7,500. At a 36% limit, total debt payments can be $2,700, so the housing budget is $2,700 − $400 = $2,300. After $383.08 for property taxes, $1,916.92 is left for principal and interest. The loan is $1,916.92 ÷ 0.0067743 = about $282,967, and the home price is $282,967 ÷ 0.80 = about $354,000. Without the $400 in other debts, the same income supports about $428,000 (table above).
What debt-to-income ratio do lenders use?
Your debt-to-income ratio is all your monthly debt payments, including the new mortgage payment, divided by your gross monthly income; the CFPB calls it one way lenders measure your ability to manage the payments, and notes that different loan products and lenders have different limits [3].
For conventional loans sold to Fannie Mae, the maximum total DTI is 36% of stable monthly income for manually underwritten loans, up to 45% if the borrower meets the credit score and reserve requirements, and up to 50% for loans underwritten through Fannie Mae’s automated system, Desktop Underwriter [4]. The housing part of the ratio includes principal, interest, taxes, insurance and any association dues [4]. FHA, VA and other loans have their own rules; ask your lender which limit applies to you. See first-time home buyer loans in Chicago.
What lowers the price you can afford in Chicago?
- Insurance and assessments. Each $100 a month you add for homeowners or condo insurance, condo assessments or HOA dues lowers the price by about $18,450 at 7.18% with 20% down. A condo with $350 a month in assessments supports about $64,600 less.
- A higher tax bill than the median. The table uses the median Chicago homeowner bill [5]. Bills rise with the home’s assessed value and vary by taxing district, so estimate the bill for the home you want with our Chicago property tax guide. Each extra $100 a month in tax lowers the price by about $18,450.
- A smaller down payment. With less than 20% down, more of the payment goes to the loan and you usually pay mortgage insurance, so the price you can afford is lower than the table shows. See monthly mortgage payment on a Chicago home for FHA mortgage insurance figures.
- A higher rate. Your rate depends on your credit score, loan type and points; the PMMS average assumes a credit score of 740 or higher [2]. See Chicago mortgage rates this week and credit score to buy a house in Chicago.
Down payment assistance can raise what you can afford by covering part of the down payment or closing costs. Estimate yours with the Chicago down payment assistance calculator, and see what it costs to buy a home in Chicago for cash needed at closing.
Common questions
How much house can I afford on $100,000 a year in Chicago?
About $483,000 with total debt payments at 36% of gross income, or about $621,000 at 45%, assuming no other debts, 20% down, the 7.18% Freddie Mac average (Nov. 5, 2026) and the median Chicago homeowner tax bill, before insurance and assessments.
How much house can I afford on $75,000 a year in Chicago?
About $344,000 at a 36% debt-to-income limit, or about $448,000 at 45%, under the same assumptions. Other debts, insurance and assessments lower these figures.
What is a good debt-to-income ratio to buy a house?
Fannie Mae’s limit for manually underwritten loans is 36%, up to 45% with strong credit and reserves, and up to 50% through its automated underwriting. Limits differ by loan type and lender, according to the CFPB.
Does this include property taxes in Chicago?
Yes, it sets aside $383.08 a month, the tax year 2025 median Chicago homeowner bill of $4,597 reported by the Cook County Treasurer. The bill on the home you buy may be higher or lower.
Sources
- Freddie Mac, Primary Mortgage Market Survey (release of November 5, 2026; read November 6, 2026)
- Freddie Mac, Freddie Mac’s Newly Enhanced Mortgage Rate Survey Explained (November 3, 2022)
- CFPB, What is a debt-to-income ratio? (reviewed August 28, 2023)
- Fannie Mae Selling Guide, B3-6-02, Debt-to-Income Ratios (April 2, 2025)
- Cook County Treasurer, Tax Year 2025 Bill Analysis (August 2026)
- FHFA, FHFA Announces Conforming Loan Limit Values for 2026 (November 25, 2025)
Cite this page: Chicago First Time Home Buyer, “How Much House Can I Afford in Chicago? Home Prices by Income (2026),” reviewed November 6, 2026, chicagofirsttimehomebuyer.com/costs/how-much-house-can-i-afford/.