How much house can you afford in Arizona? Start with two numbers: your gross monthly income and your lender's debt-to-income (DTI) limit. Fannie Mae caps total DTI at 36% for manually underwritten loans, up to 45% with strong credit and reserves, and up to 50% through its automated underwriting. At Freddie Mac's 7.18% average 30-year rate (Nov. 5, 2026), every $100,000 borrowed costs about $677 a month in principal and interest.
The shortcut: a $100,000 salary at 36% DTI supports about $3,000 a month for all debts. Put it all toward principal and interest and that's a loan of roughly $443,000. Taxes, insurance, HOA dues and car payments come out of that same budget.
Data note: Rates are Freddie Mac's Primary Mortgage Market Survey for the week of Nov. 5, 2026. DTI limits are from Fannie Mae's Selling Guide B3-6-02 and the CFPB. Prices are Phoenix REALTORS/ShowingTime Local Market Updates for October 2026. Payment math is standard 30-year amortization at 7.18%, calculated November 10, 2026. Your lender's numbers will differ.
Today's Numbers at a Glance
- 30-year fixed: 7.18%, down from 7.24% a week earlier (Freddie Mac)
- 15-year fixed: 6.57%
- Principal and interest per $100,000: about $677/month at 7.18%
- Phoenix median single-family price (Oct. 2026): $481,998
- Scottsdale median single-family price (Oct. 2026): $1,225,000
- Scottsdale median townhouse/condo (Oct. 2026): $485,000
- Phoenix median townhouse/condo (Oct. 2026): $320,000
Step 1: Find Your DTI Budget
The CFPB defines DTI as all monthly debt payments divided by gross monthly income. Lenders count your future housing payment (principal, interest, taxes, insurance, HOA) plus car loans, student loans, card minimums and similar debts.
- $100,000 salary: $8,333/month gross; $3,000 at 36% DTI; $3,750 at 45%
- $150,000 salary: $12,500/month; $4,500 at 36%; $5,625 at 45%
- $200,000 salary: $16,667/month; $6,000 at 36%; $7,500 at 45%
Step 2: Turn the Budget Into a Loan Amount
If the full 36% budget went to principal and interest at 7.18%, with no other debts:
- $100,000 salary: about $443,000 loan
- $150,000 salary: about $664,000
- $200,000 salary: about $886,000
These are ceilings, not targets. In real life, property taxes, homeowners insurance and HOA dues come out of the same budget, so your approved loan will be lower. For premiums, see our guide to homeowners insurance costs in Arizona.
Step 3: Compare With Local Prices
With 20% down, principal and interest at 7.18%:
- Phoenix single-family ($481,998): $385,598 loan, about $2,612/month. Keeping that within 36% takes about $87,000 in gross income
- Scottsdale townhouse/condo ($485,000): $388,000 loan, about $2,628/month. About $88,000 in income
- Phoenix townhouse/condo ($320,000): $256,000 loan, about $1,734/month. About $58,000 in income
- Scottsdale single-family ($1,225,000): $980,000 loan, about $6,639/month. About $221,000 in income. That loan is above Maricopa County's 2026 conforming limit, so it's a jumbo loan. See our jumbo loan limit guide
Again, add taxes, insurance and HOA dues to every line.
Ways to Stretch Your Budget
- Bigger down payment: each $100,000 you don't borrow saves about $677/month at 7.18%
- Pay down other debts before applying to free up DTI room
- Raise your credit score: see what credit score you need to buy a house in Arizona
- Assistance programs: our first-time home buyer programs guide covers Arizona options
- Shop lenders: compare Loan Estimates from several on the same day
“The number a lender approves and the number you're comfortable paying aren't always the same. Before my buyers tour a single home, I ask them to get pre-approved and then pick a monthly payment they'd be happy with even in a tight month. In Scottsdale especially, HOA dues and insurance can change the math more than people expect.”
— Elizabeth Vijan, Tackett Team, eXp Realty
Frequently Asked Questions
How much house can I afford with a $100,000 salary in Arizona?
At 36% DTI, about $3,000/month for all debts. That's a loan of about $443,000 if all of it went to principal and interest at 7.18%, less after taxes and insurance.
What income do you need to buy a house in Phoenix?
About $87,000 to keep principal and interest on the $481,998 median (20% down) within 36%, before taxes and insurance.
What debt-to-income ratio do lenders allow?
Fannie Mae: 36% manual, up to 45% with compensating factors, up to 50% via Desktop Underwriter.
How much is a mortgage payment on $400,000 in Arizona?
About $2,710/month in principal and interest at 7.18%, plus taxes and insurance.
Ready to Find Your Number?
I'll connect you with trusted local lenders, help you compare offers and match your budget to the right Scottsdale or Phoenix neighborhoods.
Elizabeth Vijan | Tackett Team, eXp Realty
Scottsdale & Phoenix Real Estate
Let's Talk · Call or text 602-885-7752
Sources: Freddie Mac Primary Mortgage Market Survey · Fannie Mae Selling Guide B3-6-02: Debt-to-Income Ratios · CFPB: What is a debt-to-income ratio? · Phoenix REALTORS/ShowingTime: Phoenix October 2026 (PDF) · Phoenix REALTORS/ShowingTime: Scottsdale October 2026 (PDF)
Disclaimer: Examples are simplified estimates for illustration, not loan offers or pre-approvals. Rates, terms and qualifying rules vary by lender and borrower. Information deemed reliable but not guaranteed. Equal Housing Opportunity.
Tackett Team, eXp Realty · Get in touch