How Much House Can You Afford in Massachusetts? (2026)

The most important number in home buying is not the price of the house. It is the monthly payment you can carry comfortably, month after month, while still saving and living your life. In this guide we show you how lenders measure affordability, what a Massachusetts monthly payment really includes, and how to use our calculator to find a price range that fits.

How lenders measure what you can afford

Lenders look at your debt-to-income ratio (DTI): your monthly debt payments divided by your gross (before-tax) monthly income. Debts include your new house payment plus car loans, student loans, minimum credit card payments and other loans.

• Front-end ratio: just your housing payment divided by your income.
• Back-end ratio: your housing payment plus all other debts divided by your income. This is the one lenders focus on most.

Limits depend on the loan. For Fannie Mae conventional loans, the maximum total DTI is 36% for manually underwritten loans (up to 45% with strong credit and savings) and 50% for loans approved through its Desktop Underwriter system. FHA and other programs have their own rules.

A common rule of thumb is to keep housing near 28% of gross income and all debts near 36%. It is not a law or a lending limit, but it is a helpful reality check. Just because a lender will approve a higher ratio does not mean it is comfortable for your family.

A simple example

Here is an example with round numbers to show the math. It is not a quote.

1. Household gross income: $9,000 per month.
2. At a 36% total DTI, all monthly debts should stay under about $3,240.
3. If you already pay $400 a month for a car, about $2,840 is left for your full housing payment.
4. That $2,840 must cover principal, interest, property taxes, insurance and any mortgage insurance or condo fee, not just the loan.

What a Massachusetts monthly payment includes

Principal and interest

This is the loan itself. Rates in late 2026 are higher than a year ago. Freddie Mac’s weekly survey showed an average 30-year fixed rate of 7.24% on October 29, 2026, compared with 6.17% a year earlier. At 7.24%, principal and interest on a $400,000, 30-year loan is about $2,726 a month. At 6.24%, the same loan is about $2,460, so a single percentage point changes the payment by more than $250 a month.

These are principal and interest only, before taxes and insurance.

Property taxes

Massachusetts property taxes are set by each city and town, so they vary a lot. As an example, Boston’s residential tax rate for fiscal year 2026 is $12.40 per $1,000 of assessed value. On a home assessed at $600,000, that is $7,440 a year, or about $620 a month, before any exemption. Boston and some other communities offer a residential exemption for owner-occupants that can lower the bill, so ask the local assessor’s office. Always check the rate for the exact town you are considering.

Homeowners insurance

Insurance costs depend on the home’s age, size, location, coverage and your history. Older homes and multi-families can cost more to insure. Get real quotes early, before you make an offer. If you buy a condo, the association’s master policy covers the building and you buy a separate unit policy (often called HO-6).

Mortgage insurance (PMI or MIP)

With a conventional loan and less than 20% down, you usually pay private mortgage insurance (PMI). You can ask to cancel it in writing when your balance reaches 80% of the home’s original value, and it must end automatically at 78% if your payments are current. FHA loans have their own mortgage insurance (MIP): an upfront premium of 1.75% of the loan, plus an annual premium that is 0.55% for most borrowers. Some programs, such as ONE Mortgage, have no PMI at all. See our mortgage types guide for details.

Condo or HOA fees

Condo fees pay for shared costs like insurance, common area upkeep, snow removal and reserves for future repairs. Lenders count the fee in your DTI. Ask for the condo budget and recent fee history. Our condo buying guide explains what to review.

Do not forget the cash you need

• Down payment: from 0% (VA), 3% (some conventional and ONE Mortgage loans) or 3.5% (FHA) up to 20% or more.
• Closing costs: lender fees, attorney fees, title insurance, prepaid taxes and insurance. Read our buyer closing costs guide.
• Reserves: savings left after closing. Some loans require them, and every homeowner needs them for repairs.

If cash is the challenge, look at first-time buyer programs and down payment assistance.

How to use our affordability calculator

Our affordability calculator turns these pieces into a price range.

1. Enter your gross monthly income and your current monthly debt payments.
2. Enter your planned down payment and an interest rate quote from a lender.
3. Add the property tax rate for the town you like, an insurance estimate, and any condo fee.
4. Try a few versions: a lower rate, a different town, a condo versus a single-family.
5. Pick a target payment that leaves room for savings, then share it with your lender when you get pre-approved.

How Luis can help

Luis and our team can help you compare towns, property taxes and condo fees so your budget is realistic, in English or Spanish. When you are ready, book a free 15-minute call and we will connect you with trusted lenders and help you plan your search.