The 1.5 Rule

What is the 1.5 Rule ?

The 1.5 Rule states that your Home purchase should not go over 1.5 Times your yearly salary.

I created this idea to help people with affordability questions.


Because alot of times people end up being what is called house poor?

Meaning they are spending over 50% of their income on their housing costs.



For example

If you are single and make $50k 

$50,000 X 1.5 = $75,000

You Can afford a house that is $75k

Loan amount $75k 

Down Payment 3% $2,250

Total Loan $72,750 at 3.5% = a monthly payment of $326.68 a month 

Ideally you can search for houses that are higher than $75k up to $100k if you're in a buyers market and come down to that $75k price or even lower if you can

or a married couple

with a combined income of $97,000

$97,000 X 1.5 = $145,000 



You Can afford a house that is $145k


Loan amount $145k 

Down Payment 3% $4350

Total Loan $140,650 at 3.5% = a monthly payment of $631.58 a month 


Ideally you can search for houses that are higher than $145k up to $170k if you're in a buyers market and come down to that $145k price or ideally lower