What % of your Gross income is your house payment ? (HCOL)

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
Topic Author
lazybones18
Posts: 54
Joined: Thu May 14, 2020 9:31 pm

What % of your Gross income is your house payment ? (HCOL)

Post by lazybones18 »

If you live in HCOL, what % of your gross income is your house payment ?

House payment should include property taxes, insurance and PMI if applicable
Normchad
Posts: 3344
Joined: Thu Mar 03, 2011 7:20 am

Re: What % of your Gross income is your house payment ? (HCOL)

Post by Normchad »

House is paid for, so no mortgage interest, etc.

Property tax and insurance is less than 3% of gross income.

Before it was paid off, my income was lower too at that time, it was probably 15-20% of gross income.
Last edited by Normchad on Wed Jan 12, 2022 10:46 pm, edited 1 time in total.
KlangFool
Posts: 23608
Joined: Sat Oct 11, 2008 12:35 pm

Re: What % of your Gross income is your house payment ? (HCOL)

Post by KlangFool »

lazybones18 wrote: Wed Jan 12, 2022 10:40 pm If you live in HCOL, what % of your gross income is your house payment ?

House payment should include property taxes, insurance and PMI if applicable
1) $200 to $220 per square feet area

2) 13%. PITI

KlangFool
40% VWENX | 12.5% VFWAX/VTIAX | 11.5% VTSAX | 16% VBTLX | 10% VSIAX/VTMSX/VSMAX | 10% VSIGX| 40% Wellington 40% 3-funds 20% Mini-Larry
muffins14
Posts: 1292
Joined: Wed Oct 26, 2016 4:14 am
Location: New York

Re: What % of your Gross income is your house payment ? (HCOL)

Post by muffins14 »

Renting in NYC, but it’s 8% of combined income. I think after-tax income might be more relevant though, due to potentially high marginal tax rates. Probably we’re about 16% of after-tax dollars going to rent
35% NTSX, 25% AVUV, 15% NTSI, 15% AVDV, 10% VWO
somekevinguy
Posts: 178
Joined: Mon Jan 16, 2017 9:23 pm

Re: What % of your Gross income is your house payment ? (HCOL)

Post by somekevinguy »

VHCOL area (ie $1600-$1800 per sq ft). 13% of gross for PITI.
pizzy
Posts: 896
Joined: Tue Jun 02, 2020 6:59 pm

Re: What % of your Gross income is your house payment ? (HCOL)

Post by pizzy »

Mortgage payment (PITI) is 8% of gross.
Late 30's | 90% VT | 10% Cash
HappyPappy
Posts: 42
Joined: Sun Jan 02, 2022 4:05 pm

Re: What % of your Gross income is your house payment ? (HCOL)

Post by HappyPappy »

17% PITI, of gross income
milktoast
Posts: 497
Joined: Wed Jul 10, 2019 8:17 pm

Re: What % of your Gross income is your house payment ? (HCOL)

Post by milktoast »

$700/sqft. PITI 1.5%
Ron Ronnerson
Posts: 2562
Joined: Sat Oct 26, 2013 6:53 pm
Location: Bay Area

Re: What % of your Gross income is your house payment ? (HCOL)

Post by Ron Ronnerson »

PITI plus HOA dues are about 33% of gross income.
User avatar
Beensabu
Posts: 1584
Joined: Sun Aug 14, 2016 3:22 pm

Re: What % of your Gross income is your house payment ? (HCOL)

Post by Beensabu »

This year, it will probably be 47%. Last year, it was 57%. The year before that, it was 60%. The year before that, it was 23%. The very first year, it was 36%.
"The only thing that makes life possible is permanent, intolerable uncertainty; not knowing what comes next." ~Ursula LeGuin
AlohaJoe
Posts: 6280
Joined: Mon Nov 26, 2007 2:00 pm
Location: Saigon, Vietnam

Re: What % of your Gross income is your house payment ? (HCOL)

Post by AlohaJoe »

0%

No mortgage. Or property tax where I live. No insurance on the house, either.
muffins14
Posts: 1292
Joined: Wed Oct 26, 2016 4:14 am
Location: New York

Re: What % of your Gross income is your house payment ? (HCOL)

Post by muffins14 »

AlohaJoe wrote: Wed Jan 12, 2022 11:03 pm 0%

No mortgage. Or property tax where I live. No insurance on the house, either.
Nice. Congrats!
35% NTSX, 25% AVUV, 15% NTSI, 15% AVDV, 10% VWO
charis23
Posts: 106
Joined: Mon Jan 02, 2017 3:25 pm

Re: What % of your Gross income is your house payment ? (HCOL)

Post by charis23 »

19% PITI (just learned what that is :D )
slalom
Posts: 111
Joined: Mon Dec 25, 2017 4:59 am

Re: What % of your Gross income is your house payment ? (HCOL)

Post by slalom »

VHCOL

All-inclusive house payment is 16% of gross
User avatar
MrBobcat
Posts: 780
Joined: Fri Jan 11, 2019 5:19 pm

Re: What % of your Gross income is your house payment ? (HCOL)

Post by MrBobcat »

Just TI, 1.4%

edit MCOL
Last edited by MrBobcat on Thu Jan 13, 2022 10:59 am, edited 1 time in total.
quantAndHold
Posts: 7064
Joined: Thu Sep 17, 2015 10:39 pm

Re: What % of your Gross income is your house payment ? (HCOL)

Post by quantAndHold »

It’s varied over the years, from 50% to 2.5%. Currently at the low end of that. VHCOL.
Last edited by quantAndHold on Thu Jan 13, 2022 12:12 am, edited 1 time in total.
Yes, I’m really that pedantic.
ucibob1
Posts: 6
Joined: Tue Jan 29, 2019 6:14 pm

Re: What % of your Gross income is your house payment ? (HCOL)

Post by ucibob1 »

HCOL - Houses = $700/Square Foot
15.7% (PITI) of gross income
InvestingAg
Posts: 10
Joined: Mon Mar 04, 2019 9:38 am

Re: What % of your Gross income is your house payment ? (HCOL)

Post by InvestingAg »

Dallas area.

Just bought starter home for me and my pregnant wife.

33%. That is just on my income. Wife left her job and will be doing part-time/freelancing so not including anything she will make.
User avatar
black jack
Posts: 758
Joined: Fri Oct 10, 2008 10:13 pm

Re: What % of your Gross income is your house payment ? (HCOL)

Post by black jack »

$375/sq ft (thought I lived in a HCOL area, but on a sq ft basis maybe not, looking at some others)

PITI is 11.5% of gross income, but I did a cash-out refinance last fall and invested the cash; had I simply refinanced the existing mortgage, it would be 8%, so I would consider that the house payment, with the remainder being an investment expense.
We cannot absolutely prove [that they are wrong who say] that we have seen our best days. But so said all who came before us, and with just as much apparent reason. | -T. B. Macaulay (1800-1859)
BernardShakey
Posts: 570
Joined: Tue Jun 25, 2019 10:52 pm
Location: CA

Re: What % of your Gross income is your house payment ? (HCOL)

Post by BernardShakey »

PITI is 11% of gross. HCOL. Prop value is about $500-550 per sqft if that is helpful.
An important key to investing is having a well-calibrated sense of your future regret.
User avatar
anon_investor
Posts: 10154
Joined: Mon Jun 03, 2019 1:43 pm

Re: What % of your Gross income is your house payment ? (HCOL)

Post by anon_investor »

AlohaJoe wrote: Wed Jan 12, 2022 11:03 pm 0%

No mortgage. Or property tax where I live. No insurance on the house, either.
No insurance... :shock:
kinless
Posts: 111
Joined: Sat May 15, 2010 11:54 pm
Location: Tustin, CA

Re: What % of your Gross income is your house payment ? (HCOL)

Post by kinless »

Despite refinancing (twice) in HCOL SoCal, the rising property tax, hazard insurance and 2 HOAs stubbornly keep payments around the same over the last 11 years. Luckily income has gone up considerably since then.

Currently around 28% of gross.
donaldfair71
Posts: 893
Joined: Wed Mar 06, 2013 4:15 pm

Re: What % of your Gross income is your house payment ? (HCOL)

Post by donaldfair71 »

Mine is about 7% of gross income.

It wasn’t always this way, but between the raises, refinancing, etc., it is now. That number has fluctuated up as far as about 20%.
investingdad
Posts: 1956
Joined: Fri Mar 15, 2013 10:41 pm

Re: What % of your Gross income is your house payment ? (HCOL)

Post by investingdad »

When we first built it was about 16%.

It’s down to 5.5%.

We could afford more for sure but don’t see the point.
Yefuy.Goje
Posts: 67
Joined: Fri Oct 29, 2021 3:29 pm

Re: What % of your Gross income is your house payment ? (HCOL)

Post by Yefuy.Goje »

Beensabu wrote: Wed Jan 12, 2022 11:01 pm This year, it will probably be 47%. Last year, it was 57%. The year before that, it was 60%. The year before that, it was 23%. The very first year, it was 36%.
It seems too high.
I am assuming your other expenses are low or this is a temporary situation.
Jags4186
Posts: 6462
Joined: Wed Jun 18, 2014 7:12 pm

Re: What % of your Gross income is your house payment ? (HCOL)

Post by Jags4186 »

Right now 18% of my base salary but my wife isn't working at the moment. When she gets back to work it should drop to about 10-12%.

I never felt $/sqft was a relevant metric because most areas are priced in a band regardless of the property size. My house is 1500 sqft on 1/4 acre and according to Zillow is worth $560k. Let's say it's really worth $500k. That's $333/sqft. There are some houses in my town that are 4000, 5000 sqft on 1/2 acre that have sold in the $900-$1MM range. Therefore, it seems to me no one is willing to pay more than $1mm to live in my town, regardless of the property size.

Of course, the property taxes alone on a 5000sqft house in my town are more than PITI on my house.
Last edited by Jags4186 on Thu Jan 13, 2022 7:59 am, edited 1 time in total.
User avatar
Nate79
Posts: 7908
Joined: Thu Aug 11, 2016 6:24 pm
Location: Delaware

Re: What % of your Gross income is your house payment ? (HCOL)

Post by Nate79 »

Ours is 14% on a 15 year fixed mortgage PITI.
Coltrane75
Posts: 285
Joined: Wed Feb 06, 2019 2:32 pm

Re: What % of your Gross income is your house payment ? (HCOL)

Post by Coltrane75 »

I'm a renter in VHCOL area. It is about 25% of my gross salary.
JS-Elcano
Posts: 426
Joined: Wed Jun 10, 2020 7:29 pm

Re: What % of your Gross income is your house payment ? (HCOL)

Post by JS-Elcano »

MCOL here, but maybe still of interest to some:

$210/sq ft

Payment was 30% of gross when I bought it. Now 10% of gross as income has increased.

Decided to stay in my "starter home" forever and make it my own> Best decision ever :beer
User avatar
novolog
Posts: 271
Joined: Tue Jan 30, 2018 6:24 pm
Location: Greater Boston

Re: What % of your Gross income is your house payment ? (HCOL)

Post by novolog »

i live 30 min outside of Boston.

we pay 15% of gross household income for PITI

tbh i think take home/after tax income is a better metric here.

we pay 25% of after tax income for PITI
7x annual expenses | 67% equities (401k + Roth) | 11% bitcoin | 16% home equity | 6% cash (emergency fund)
User avatar
novolog
Posts: 271
Joined: Tue Jan 30, 2018 6:24 pm
Location: Greater Boston

Re: What % of your Gross income is your house payment ? (HCOL)

Post by novolog »

JS-Elcano wrote: Thu Jan 13, 2022 8:45 am Payment was 30% of gross when I bought it. Now 10% of gross as income has increased.

Decided to stay in my "starter home" forever and make it my own> Best decision ever :beer
i think if your goal is to grow wealth as quickly as possible, this is the way to go.

no transaction fees, tax base stays low.
7x annual expenses | 67% equities (401k + Roth) | 11% bitcoin | 16% home equity | 6% cash (emergency fund)
runner3081
Posts: 4713
Joined: Mon Aug 22, 2016 3:22 pm

Re: What % of your Gross income is your house payment ? (HCOL)

Post by runner3081 »

No mortgage (when we did have one it was about 8% of gross income for principal/interest).

Right now, property tax and insurance are about 2% of gross.
VoiceOfReason
Posts: 270
Joined: Sat Jan 02, 2016 6:54 pm

Re: What % of your Gross income is your house payment ? (HCOL)

Post by VoiceOfReason »

HCOL - 14%
MCOL - previous house 7%
User avatar
StevieG72
Posts: 1582
Joined: Wed Feb 05, 2014 9:00 pm

Re: What % of your Gross income is your house payment ? (HCOL)

Post by StevieG72 »

Not in a HCOL area however it was .55% until a few years ago and now it is zero. A bigger house would not bring happiness to my life so I still live in my starter home.

Divorced with one child so the space is plenty for myself and the kiddo.
Fools think their own way is right, but the wise listen to others.
buystoys
Posts: 15
Joined: Tue May 11, 2021 8:08 am

Re: What % of your Gross income is your house payment ? (HCOL)

Post by buystoys »

Less than 1% of gross income. LCOL area. Price is about $150-$200/sq ft in this area. We have a low mortgage and do pay extra on it monthly.
ASpenderInRecovery
Posts: 325
Joined: Sat Jul 29, 2017 9:17 am

Re: What % of your Gross income is your house payment ? (HCOL)

Post by ASpenderInRecovery »

I live in Northern VA which is HCOL. We pay 8% of gross in PITI + HOA on a 15 yr fixed mortgage. The challenge is know :greedy I could have a larger home, and I've been itching to upgrade for the past 14 months. A step up to a nice single family home would move it to 14% PITI on a 30 yr fixed.
hoofaman
Posts: 287
Joined: Tue Jul 14, 2020 3:39 pm

Re: What % of your Gross income is your house payment ? (HCOL)

Post by hoofaman »

Property Taxes, HoA fees, and Insurance are 4% of gross income, no mortgage balance on the home
inves76
Posts: 32
Joined: Sun Jan 20, 2019 4:39 pm

Re: What % of your Gross income is your house payment ? (HCOL)

Post by inves76 »

NYC and renting. 16% of gross income
HootingSloth
Posts: 649
Joined: Mon Jan 28, 2019 3:38 pm

Re: What % of your Gross income is your house payment ? (HCOL)

Post by HootingSloth »

PITI + HOA fee is about 5.5% of gross income. Price per square foot is around $580.
Global Market Portfolio + modest tilt towards volatility (80/20->60/40 as approach FI) + modest tilt away from exchange rate risk (80% global+20% U.S. stocks; currency-hedge bonds) + tax optimization
finfire
Posts: 275
Joined: Tue Aug 14, 2018 1:52 pm

Re: What % of your Gross income is your house payment ? (HCOL)

Post by finfire »

PITI=8%
FLPhil
Posts: 2
Joined: Thu Jan 13, 2022 10:08 am

Re: What % of your Gross income is your house payment ? (HCOL)

Post by FLPhil »

PITI - 9.2%
Colorado13
Posts: 1368
Joined: Thu Apr 07, 2011 4:58 pm
Location: Colorado

Re: What % of your Gross income is your house payment ? (HCOL)

Post by Colorado13 »

Property taxes and insurance are approximately 3.5% of gross. I expect that insurance costs will rise dramatically, particularly in response to the recent fire catastrophe in Colorado.

Mortgage = 0%.
User avatar
vgc303
Posts: 46
Joined: Mon Sep 21, 2020 1:06 pm

Re: What % of your Gross income is your house payment ? (HCOL)

Post by vgc303 »

Currently PITI = 10% of gross monthly income.

In the market for a house where PITI will be 20% of gross income though.
Bluemnatra
Posts: 364
Joined: Fri Jun 11, 2021 3:37 pm

Re: What % of your Gross income is your house payment ? (HCOL)

Post by Bluemnatra »

25% of gross in HCOL in southern california.
"The greatest enemy of a good plan is the dream of a perfect plan"
User avatar
MrBobcat
Posts: 780
Joined: Fri Jan 11, 2019 5:19 pm

Re: What % of your Gross income is your house payment ? (HCOL)

Post by MrBobcat »

JS-Elcano wrote: Thu Jan 13, 2022 8:45 am MCOL here, but maybe still of interest to some:

$210/sq ft

Payment was 30% of gross when I bought it. Now 10% of gross as income has increased.

Decided to stay in my "starter home" forever and make it my own> Best decision ever :beer
I've only changed houses when we moved to different cities (2X), but we would have had to upgrade our first house as it was a 900sq ft 2br 1 bath and was a bit cozy when kid 2 & 3 came along. That being said we've been in the same house since we were 32 going on 24 years now. Made a huge difference in our finances over the years.
jharkin
Posts: 3094
Joined: Mon Mar 28, 2016 7:14 am
Location: Boston suburbs

Re: What % of your Gross income is your house payment ? (HCOL)

Post by jharkin »

I am in the Boston suburbs and I *though* i was at least in a moderately HCOL but I guess not... unless some of the VHCOL folks are thinking they are only HCOL. According to zillow my house is worth $260/sq ft

For our full PITI we are paying 17% of gross. We do not escrow.
stoptothink
Posts: 10707
Joined: Fri Dec 31, 2010 9:53 am

Re: What % of your Gross income is your house payment ? (HCOL)

Post by stoptothink »

jharkin wrote: Thu Jan 13, 2022 11:17 am I am in the Boston suburbs and I *though* i was at least in a moderately HCOL but I guess not... unless some of the VHCOL folks are thinking they are only HCOL. According to zillow my house is worth $260/sq ft
We're in Utah, ~20 miles outside of SLC; according to zillow my home is worth $300/sq. ft. Never heard anybody refer to my area as HCOL, but that term seems to be shifting nationwide.
vested1
Posts: 2731
Joined: Wed Jan 04, 2012 4:20 pm

Re: What % of your Gross income is your house payment ? (HCOL)

Post by vested1 »

Tiny house in CA with a mortgage, P+I, property tax, insurance 21% of gross in retirement. $641 per sq ft - sold 2019
2nd house in SC, no mortgage, HOA, property tax, insurance 6.6% of gross. $227 per sq ft big upgrade from previous home - sold 2021
3rd house in SC, no mortgage, HOA, property tax, insurance 7.2% of gross. $244 per sq ft forever home big upgrade 500 less sq ft. This year when age 70 SS kicks in it will drop to about 5.5% of gross
Faisal
Posts: 178
Joined: Sun Dec 18, 2016 6:37 pm

Re: What % of your Gross income is your house payment ? (HCOL)

Post by Faisal »

30% of my take home monthly salary. VHCOL area
chuckb84
Posts: 605
Joined: Wed Oct 21, 2015 10:41 am
Location: New Mexico

Re: What % of your Gross income is your house payment ? (HCOL)

Post by chuckb84 »

About 17% of gross, and for that I thank Lenderfi and two refinances.

Houses are selling here at ~$350/sq foot.
Post Reply