The question I hear most from buyers moving to Salt Lake City: "How much do I need to make to afford a house here?"
Here's the truth—it depends on three things: the home price, your down payment, and which loan program you use. The good news? Salt Lake City is still way more affordable than most major metros, and there are multiple paths to homeownership.
Let me break down the real numbers for you.
The 28/36 Rule: Your Income Roadmap
Banks use a simple metric called the debt-to-income ratio (DTI). Here's how it works:
- 28% rule: Your monthly mortgage payment (including taxes, insurance, and PMI) shouldn't exceed 28% of your gross monthly income
- 36% rule: Your total debt (mortgage + car + credit cards + student loans) shouldn't exceed 36% of gross monthly income
Most lenders stick to the 28/36 rule religiously. Some will stretch to 43% DTI if your credit and assets are solid, but don't count on it.
Real Salary Examples for Salt Lake City Home Prices
Let's use actual SLC prices and current rates. I'm assuming 20% down (conventional) or 3.5% down (FHA) and today's national average rates.
| Home Price | Down Payment (20%) | Loan Amount | Est. Monthly Payment* | Min. Annual Salary (28%) |
|---|---|---|---|---|
| $350,000 | $70,000 | $280,000 | ~$1,890 | ~$81,000 |
| $425,000 | $85,000 | $340,000 | ~$2,300 | ~$99,000 |
| $500,000 | $100,000 | $400,000 | ~$2,700 | ~$116,000 |
| $600,000 | $120,000 | $480,000 | ~$3,250 | ~$140,000 |
*Estimates include: 30-year fixed rate, property taxes (~0.6% annually in Utah County), homeowners insurance (~$1,200/year). Actual payment varies by credit score, property type, and exact location.
Lower Down Payment = Higher Salary Requirement
If you're putting less down, your monthly payment goes up, which means you need higher income. Here's the same $425,000 home with different down payments:
| Down Payment % | Down Amount | Loan Amount | Est. Monthly Payment | Min. Annual Salary | Loan Type |
|---|---|---|---|---|---|
| 20% | $85,000 | $340,000 | ~$2,300 | ~$99,000 | Conventional |
| 10% | $42,500 | $382,500 | ~$2,680 (with PMI) | ~$115,000 | Conventional + PMI |
| 5% | $21,250 | $403,750 | ~$2,950 (with PMI) | ~$127,000 | Conventional + PMI |
| 3.5% | $14,875 | $410,125 | ~$3,050 (with MI) | ~$131,000 | FHA Loan |
The lesson: A bigger down payment = lower monthly payment = lower salary requirement. Save if you can.
Quick Salary Calculator
Plug in your numbers to see what salary you need:
FHA Loans: Lower Salary Threshold
If you don't have a 20% down payment, FHA loans are your friend. They allow:
- As little as 3.5% down
- Lower credit score requirements (580+)
- Higher debt-to-income ratios (up to 43% in many cases)
The tradeoff? You'll pay mortgage insurance (FHA MI), which adds ~$200–$300/month to your payment. But for first-time buyers with limited savings, FHA is often the best path.
Example: $425,000 home, FHA 3.5% down, 7.08% rate:
- Down payment: $14,875
- Loan amount: $410,125
- Monthly payment (P&I + FHA MI): ~$3,050
- Required salary (28% DTI): ~$131,000
VA Loans: No Down Payment
If you're military or a veteran, VA loans are even better:
- Zero down payment (100% financing)
- No mortgage insurance
- Better rates than FHA (typically 0.3–0.5% lower)
- Flexible debt-to-income ratios
Example: Same $425,000 home, VA 0% down, 6.70% rate (VA average):
- Down payment: $0
- Loan amount: $425,000 (+ ~$12,750 VA funding fee)
- Monthly payment (P&I, no MI): ~$2,950
- Required salary (28% DTI): ~$127,000
Even with zero down and funding fee included, VA loans often beat conventional financing because there's no PMI.
Today's National Average Mortgage Rates
⚡ Quick note: My rates at Edge Home Finance consistently beat these national averages — contact me for a personalized quote.
| Loan Type | National Avg Rate |
|---|---|
| 30-Year Fixed | 7.08% |
| 15-Year Fixed | 6.80% |
| FHA 30-Year | 6.87% |
| VA 30-Year | 6.70% |
Rates shown are national averages as of September 28, 2026, sourced from Mortgage News Daily. Individual rates vary based on credit score, down payment, loan amount, property type, loan term, and lender. These are not rate quotes or a commitment to lend. Contact Ryan Taylor at Edge Home Finance for a personalized rate quote. Ryan Taylor NMLS# 1487488 | Edge Home Finance NMLS# 891464 | Equal Housing Opportunity.
What About Debt? The Full DTI Picture
Remember the 36% rule? If you have existing debt (car, student loans, credit cards), it matters.
Example: You make $120,000/year, and you have:
- Car payment: $500/month
- Student loans: $400/month
- Credit card payments: $200/month
- Total monthly debt: $1,100
Your 36% DTI ceiling is: ($120,000 ÷ 12) × 0.36 = $3,600/month total debt
So your mortgage payment can only be: $3,600 − $1,100 = $2,500/month
That lower mortgage payment means you might only afford a $400,000–$420,000 home instead of $500,000. Paying down debt before buying is worth it.
Frequently Asked Questions
At 28% DTI, your max monthly payment is ~$2,210. Assuming 20% down at 7.08% on a 30-year loan, you could afford roughly $425,000–$450,000 (before taxes, insurance, HOA). Use the calculator above to get exact numbers.
Yes, absolutely. If you're applying jointly, we add both incomes together. Married filing separately has different rules, but combined income is almost always better.
Good news—I work with a ton of self-employed buyers. We typically use bank statements (last 2 years) or tax returns to verify income. You might need slightly stronger credit or a bigger down payment, but it's absolutely doable.
Absolutely. We run a pre-approval to see what you qualify for. This tells you your real ceiling and helps you house-hunt smarter. Pre-approval doesn't commit you to anything—it's just a snapshot of your lending power.
Yes. Home prices in SLC average $475k–$525k in desirable areas. Compare that to Denver ($550k+), Portland ($520k+), or the Bay Area ($1.2M+). You're getting more home per dollar here, though prices have climbed in the last 3 years.
Most conventional loans require 620+. FHA allows 580+, but lenders are pickier and might charge higher rates. VA loans are also flexible on credit if you have a reasonable explanation. Talk to me before assuming you're disqualified.
Your Next Step
Salary is just one piece of the puzzle. What matters is getting pre-approved with a broker who knows Salt Lake City, knows the loan programs, and can show you real numbers.
That's me. Whether you're a first-time buyer, a relocated tech worker, or a veteran with VA benefits, I can walk you through your options and show you exactly what you can afford.
Here's what happens next:
- You contact me with rough numbers (income, down payment, credit score range)
- I pull a soft credit inquiry and run scenarios
- You get a personalized pre-approval letter valid for 90 days
- You start house hunting knowing your real ceiling
- When you find a home, we lock in your rate and get to closing
It's that simple. Let's get you into a Salt Lake City home.
Get Pre-Qualified Today →