California Home Affordability Calculator
Find the price you can afford with California's real costs built in: your county's property tax rate, Mello-Roos, earthquake insurance and the supplemental tax bill after you buy.
A common guideline keeps housing costs under 28% of gross income and all debt payments under 36%. For example, a $800,000 Los Angeles County home with 20% down at an example 6.5% rate costs about $4,983 a month including property tax and insurance, which takes roughly $213,539 a year of income with no other debts. Enter your own numbers below.
Enter your income, debts and loan terms. The interest rate has no default: use a current quote from a lender.
California Home Affordability Calculator
Estimated Maximum Price
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How this is calculated
Budget. Your monthly housing budget is the lower of 28% of gross monthly income and 36% of income minus your other monthly debts. These are common guidelines, not legal limits: Fannie Mae's cap for manually underwritten loans is 36% total debt-to-income (up to 45% with strong credit and reserves), and many lenders go higher.
Price. The calculator finds the price at which principal and interest, property tax, insurance, HOA dues, Mello-Roos, earthquake insurance and PMI (below 20% down) add up exactly to that budget.
California specifics. The property tax rate starts from your county's average (1% under Prop 13 plus voter-approved debt). After you buy, the assessed value can grow by at most 2% a year until the next change of ownership. The purchase triggers a reassessment, so the county sends supplemental bills for the difference between your price and the seller's assessed value, prorated from the first of the month after closing (Revenue and Taxation Code 75.41), the same method as our property tax calculator.
Frequently Asked Questions
How much income do I need to buy a house in California?
It depends on the price, rates and your debts. As an example, a $800,000 home with 20% down, a 6.5% 30-year mortgage (an example rate, not a quote), Los Angeles County's average property tax rate and $1,800 a year of insurance costs about $4,983 a month. With no other debts, keeping that under 28% of gross income takes about $213,539 a year.
What is Mello-Roos?
A special tax some California neighborhoods pay to fund local infrastructure such as schools, roads and parks, under a Community Facilities District. It's charged on top of the regular 1% property tax, can run for decades, and varies by district. The seller must disclose it, so check the disclosure before you make an offer.
What is a supplemental property tax bill?
When you buy a home, the county reassesses it at the purchase price. Because your regular bill is still based on the seller's value, the county sends one or two supplemental bills for the difference, prorated from the month after you close (Revenue and Taxation Code 75.41). They're billed separately and often aren't covered by an escrow account.
Is the 28/36 rule required to get a mortgage?
No. It's a common guideline. Fannie Mae's limit for manually underwritten loans is a 36% total debt-to-income ratio, or up to 45% with strong credit and reserves, and loans run through its automated system can go to 50%. It doesn't set a separate housing-only ratio. Lenders use their own standards, so use this as a starting point.
How much is property tax in California?
The base rate is 1% of the assessed value (Prop 13), plus voter-approved local debt, so countywide averages run about 1% to 1.248% for fiscal year 2024-25. After you buy, the assessed value can rise by no more than 2% a year until the home changes ownership or you add new construction.
This tool provides an educational estimate only and is not a loan offer or financial advice. Lenders set their own qualifying ratios, rates and mortgage insurance, and your parcel's tax rate can differ from the county average. Get a pre-approval before you shop.