How Much House Can I Afford in NYC?

In NYC, a common rule of thumb is that your total monthly housing cost (mortgage payment plus co-op maintenance, or condo common charges plus property taxes) should stay around 25% to 30% of your gross income, which works out to roughly $145,000 a year for a $500,000 apartment and about $290,000 for a $1 million one, assuming a 6.5% rate, 20% down and the monthly charges shown in the table below. Lenders may approve more than that, but co-op boards often apply a stricter test and also want cash left over after closing.

Below is the math step by step, a table of income needed at different prices, and a calculator to run your own numbers.

Step 1: Know the two tests you must pass

Most buyers think only about the mortgage approval. In New York City there are often two separate tests.

The lender’s debt-to-income ratio

The Consumer Financial Protection Bureau defines debt-to-income (DTI) as all your monthly debt payments divided by your gross monthly income. Its example: $1,500 mortgage + $100 auto loan + $400 other debts = $2,000, divided by $6,000 of income = 33%. For loans sold to Fannie Mae, the maximum total DTI is 36% for manually underwritten loans (up to 45% if you meet credit score and reserve requirements) and 50% for loans run through its automated Desktop Underwriter system. Other loan types and lenders set their own limits.

The co-op board’s ratio

Co-ops are private corporations and set their own financial rules. Industry guides report that most NYC co-op boards look for a debt-to-income ratio of about 25% to 30%, counting the mortgage, maintenance and other fixed debts, and about one to two years of housing costs in liquid assets after closing. Some buildings are stricter, some look at the whole application. Ask the listing agent or managing agent for the building’s actual requirements before you bid. See co-op financial requirements.

Condos and houses generally do not have a board financial test, so the lender’s DTI is the main limit.

Step 2: Add up the real monthly cost

In much of the country, the mortgage payment is most of the housing cost. In NYC, the monthly charges on an apartment can be a large share of the total.

• Co-op: mortgage (principal and interest) + monthly maintenance. Maintenance usually includes the building’s property taxes and its underlying mortgage, so you do not pay a separate tax bill.
• Condo: mortgage + common charges + your unit’s own property tax bill.
• House: mortgage + property tax + homeowners insurance + water and sewer + upkeep.

Add homeowners or HO-6 insurance, private mortgage insurance if you put down less than 20% on a conventional loan, and any special assessment. The true monthly cost of owning in NYC walks through each line.

Step 3: Work backward from income

1. 1

   Start with gross monthly income

   Example: $200,000 a year ÷ 12 = $16,667 a month.
2. 2

   Apply the ratio you need to pass

   At a 30% co-op ratio: $16,667 × 0.30 = $5,000 a month for all housing costs and other fixed debts.
3. 3

   Subtract other debts

   If you pay $400 a month on a student loan, $4,600 is left for housing.
4. 4

   Subtract monthly charges

   If the apartments you like carry about $1,400 a month in maintenance, $3,200 is left for the mortgage.
5. 5

   Convert the payment to a loan

   At 6.5% for 30 years, $3,200 a month supports a loan of about $506,000. With 20% down, that is a price of roughly $630,000.

Under the lender’s 50% automated limit, the same household could qualify for much more. The board’s test, and your own comfort level, is what actually caps the price.

Income needed at different prices

Two things stand out. First, the monthly charges add roughly 37% to 44% on top of the mortgage payment in these examples. Second, putting 10% down instead of 20% on a $750,000 apartment raises the income needed by about $19,000 a year, before any mortgage insurance, and many co-ops will not accept 10% down at all. Read how much down payment you need.

Run your own numbers

Enter your price, down payment, rate and monthly charges to see the payment:

To work backward from income instead, use the home affordability calculator. To test a specific co-op, try the co-op board approval calculator, and check your ratio with the debt-to-income calculator.

Cash you need besides the down payment

• Closing costs. In NYC these include attorney fees, title insurance (condos and houses), mortgage recording tax on condos and houses, and the mansion tax at $1 million and up. Estimate them with the NYC closing cost calculator.
• Post-closing reserves. Lenders may require reserves, and co-op boards often expect one to two years of costs in liquid savings after closing.
• Moving and setup. Movers, furniture and any renovation the building will let you do.

Loan size limits

For 2026, the baseline conforming loan limit for a one-unit home is $832,750 and the high-cost-area ceiling is $1,249,125, according to the Federal Housing Finance Agency. Loans above your county’s limit are jumbo loans, which can have different rate, down payment and reserve requirements. Check yours with the conforming loan limit checker.

A sensible way to set your budget

1. Get pre-approved to learn the lender’s maximum. Treat it as a ceiling, not a target.
2. Pick a monthly total you are comfortable paying, including charges and taxes.
3. For co-ops, check the building’s DTI, down payment and liquidity rules before you bid.
4. Keep an emergency fund separate from your down payment and closing costs.
5. Compare with renting using the rent vs buy calculator.

This guide is general information. Your lender and, for co-ops, the board decide what you qualify for. Next, read how to buy a home in NYC.