How Much House Can I Afford in Seattle? (2026)
Use the 28/36 rule with real Seattle income levels, current rates, and conforming loan limits to find your realistic price range before you start touring.
At a $150,000 household income with 20% down and a ~7% mortgage rate [VERIFY], you can afford roughly $625,000 in Seattle. At $220,000 income, that number reaches about $920,000. The problem: King County’s median home price sits around $875,000 [VERIFY] — which means the median household earning around $110,000 [VERIFY] faces a real affordability gap. This guide shows you exactly how those numbers work and what your options are when the math is tight.
The 28/36 rule
Lenders use two ratios to determine how much they’ll lend you.
Front-end ratio (28%): Your total monthly housing payment — principal, interest, property taxes, and insurance (PITI) — should not exceed 28% of your gross monthly income. Some lenders stretch this to 31% for FHA or WSHFC loans.
Back-end ratio (36%): Your total monthly debt payments — housing plus car loans, student loans, credit cards, and other recurring obligations — should not exceed 36% of gross monthly income. Conventional loans often allow up to 43–45% back-end ratios with strong credit; some loan types go higher.
These are guidelines, not absolute floors. A 760 credit score and 25% down payment gives you flexibility. A 640 score with student loan debt does not.
King County conforming loan limit
In 2026, the conforming loan limit for King County is approximately $806,500 [VERIFY]. This matters because loans at or below this threshold qualify for conventional Fannie/Freddie underwriting — typically lower rates and more lender options than jumbo products. If your purchase price requires a loan above $806,500, you’ll need a jumbo loan, which often requires stricter credit criteria and a larger down payment.
At 20% down, the conforming limit allows you to buy a home up to roughly $1,008,000 before entering jumbo territory.
Income-to-home-price table (20% down, ~7% rate) [VERIFY current rates]
These estimates assume 20% down, a 30-year fixed rate of approximately 7%, King County property tax of about 1% annually, and homeowner’s insurance of roughly $150/month. Adjust for your specific situation.
| Household income | Max home price (28% rule) | Monthly PITI (est.) | Loan amount |
|---|---|---|---|
| $100,000 | ~$420,000 | ~$2,333 | ~$336,000 |
| $150,000 | ~$625,000 | ~$3,500 | ~$500,000 |
| $180,000 | ~$750,000 | ~$4,200 | ~$600,000 |
| $220,000 | ~$920,000 | ~$5,133 | ~$736,000 |
| $300,000 | ~$1,250,000 | ~$7,000 | ~$1,000,000 |
| $400,000 | ~$1,650,000 | ~$9,333 | ~$1,320,000 (jumbo) |
Note: These are starting estimates. Your actual number depends on your credit score, existing debt, specific tax rates for the property, HOA dues (if any), and the lender’s current rate sheet.
Effect of down payment on monthly cost
Most buyers don’t have 20% down — especially in King County where 20% of $875,000 is $175,000. Here’s what happens to your monthly payment and PMI cost at different down payment levels on a $750,000 home at 7%:
| Down payment | Loan amount | Monthly P&I | PMI (est.) | Total monthly |
|---|---|---|---|---|
| 5% ($37,500) | $712,500 | ~$4,742 | ~$356/mo | ~$5,248 |
| 10% ($75,000) | $675,000 | ~$4,495 | ~$270/mo | ~$4,915 |
| 20% ($150,000) | $600,000 | ~$3,993 | None | ~$4,143 |
PMI (private mortgage insurance) is required on conventional loans when you put down less than 20%. It typically costs 0.3–0.7% of the loan balance annually and falls off once you reach 20% equity. On a $712,500 loan, that’s $356–$832/month — a real cost that changes the math significantly.
Going from 5% to 10% down saves roughly $330/month. Going from 10% to 20% saves roughly $770/month and eliminates PMI. But saving an additional $75,000–$100,000 in Seattle takes years — which is why many buyers use the minimum required down payment and accept PMI in the near term.
The Seattle affordability gap
Here’s the honest picture. King County’s median household income is approximately $110,000 [VERIFY]. At that income with 20% down, the 28% rule puts your max purchase price around $460,000. The median home price in King County is around $875,000 [VERIFY].
That’s a $415,000 gap between what the median household can afford and what the median home costs. This is why:
- Dual-income households dominate purchases. Two incomes at $75,000 each ($150,000 combined) get you to $625,000. Two at $90,000 ($180,000 combined) reach $750,000.
- Savings timelines are long. Saving 10% for a $750,000 home ($75,000) at $1,500/month saved takes over four years — during which Seattle prices have historically continued to rise.
- Co-buyers and family assistance are common. Gift funds, co-signers, and shared equity arrangements are not unusual in Seattle transactions.
When you’re below the threshold: your actual options
If the table above shows your income doesn’t reach your target neighborhood’s price point, these are the realistic paths:
Eastside suburbs
Cities like Renton, Kent, Auburn, and Federal Way offer entry points in the $500,000–$700,000 range — still expensive, but achievable on $130,000–$160,000 household incomes. Commute times to Bellevue or Seattle vary from 30–60 minutes depending on traffic and whether light rail is nearby.
South Seattle and neighborhoods along Link Light Rail
Rainier Valley, Columbia City, and Beacon Hill remain more affordable than Capitol Hill or Fremont and sit on the existing Link corridor — a genuine commute advantage. Prices have risen substantially since light rail expanded, but entry points can still be found below $700,000.
Condo as a stepping stone
Condos in Seattle and the Eastside frequently price $100,000–$200,000 below comparable square footage in single-family homes. A condo at $450,000–$600,000 can build equity over 3–5 years, then be sold toward a single-family home as your income and equity grow. HOA dues reduce your net savings from homeownership — factor them in.
North Snohomish County
Marysville, Everett, and Lynnwood offer meaningfully lower prices than King County. With Lynnwood Link light rail now open [VERIFY current status], commute options to Seattle have improved for some submarkets.
What to do before you talk to a lender
- Pull your credit report (annualcreditreport.com — free, no score required). Dispute errors now, not after you’re under contract.
- Calculate your real back-end ratio. Add up all monthly debt minimums. If that number plus your target PITI exceeds 36% of gross monthly income, a lender may limit your purchase price below what the 28% rule suggests.
- Verify gift fund eligibility. If family is helping with your down payment, confirm with a lender how much can come from gifts under your intended loan type.
- Check WSHFC programs. Washington State’s Home Advantage program offers below-market mortgage rates for qualifying first-time buyers — if your income is under ~$180,000 [VERIFY], this can meaningfully reduce your monthly payment compared to a standard conventional loan.
Using a flat-fee buyer’s agent in Seattle means the seller-offered commission — typically 2–3% of purchase price — is paid to us at our capped flat fee, with the remainder rebated to you at closing. On a $750,000 home, that rebate can reach several thousand dollars, functioning as additional cash toward closing costs or prepaids. It doesn’t change the price you can afford, but it reduces out-of-pocket costs on closing day.