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Points Frog guide

Am I house poor?

Enter your income and what your home costs each month to see whether you're house poor. The calculator checks your housing costs against HUD's 30% cost-burden line, your debts against lenders' 36% guideline, and whether your savings and monthly leftovers can absorb a surprise.

House poor calculator

A year, before taxes.

A month, after taxes and payroll deductions.

A month: principal and interest, or your rent.

A month, including mortgage insurance.

A month: power, gas, water, trash, internet.

For a maintenance budget.

A month: car, student loans, cards.

Cash you could reach this week.

Not house poor, but stretched

Housing takes 28% of your gross income ($2,800 of $10,000 a month). That's within HUD's 30% line, but a guideline below is in the warning zone.

Housing costs are 28% of income. Lines mark 28%, 30% and 50%.

  • Housing costs (OK)

    28% of income

    Under 28% is comfortable; HUD's cost-burdened line is 30%.

  • Mortgage plus other debts (OK)

    29% of income

    Lenders aim for 36% or less; most stop around 43%.

  • Emergency cushion (Watch)

    4.7 months

    Of housing and debt payments. 3 months is a minimum, 6 is safer.

  • Left each month (OK)

    $3,846

    Of take-home pay, after housing, debts and $354 for upkeep (1% of the home's value a year).

Housing costs follow the Census Bureau's definition: mortgage or rent, property tax, insurance, HOA fees and utilities. An educational estimate, not financial advice.

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Am I house poor?

You're house poor if your housing costs (mortgage, property tax, insurance, HOA fees and utilities) take more than 30% of your gross income, the line HUD uses for cost-burdened households, or if they leave too little for savings and emergencies. Above 50%, HUD counts a household as severely cost burdened.

House poor describes a homeowner who can make the mortgage payment but has little left afterward for savings, repairs, retirement or everyday life. The house may be gaining value, but the household is short of cash each month.

What percentage of income should go to housing?

Lenders' rule of thumb is 28% of gross income for housing and 36% for housing plus all other debts. HUD considers anything over 30% a cost burden. On a $100,000 income, 28% is $2,333 a month and 30% is $2,500.

The most a household can spend on housing a month and stay within each guideline
Household income28% (comfortable)30% (HUD line)50% (severe)
$50,000$1,167$1,250$2,083
$75,000$1,750$1,875$3,125
$100,000$2,333$2,500$4,167
$125,000$2,917$3,125$5,208
$150,000$3,500$3,750$6,250
$200,000$4,667$5,000$8,333
$250,000$5,833$6,250$10,417

How many homeowners are house poor?

About 27% of US households with a mortgage spent more than 30% of their income on housing in 2023, according to Census Bureau American Community Survey figures reported by Pew Research Center. Among renters, the share was close to half. The Census Bureau uses HUD's standard: more than 30% of income on housing is a cost burden, and more than 50% a severe one.

How much emergency savings should a homeowner have?

At least 3 months of essential costs, and 6 is safer, since a job loss or big repair can hit at the same time. A common rule of thumb is to budget about 1% of your home's value each year for maintenance and repairs, more for an older home.

How do I stop being house poor?

Lower the cost of the house or raise the income that pays for it. Options include refinancing if rates fall, asking your lender about a recast after a lump-sum payment, appealing your property tax assessment, shopping your home insurance, paying down other debts, renting out a room, or, if the numbers don't work, selling and moving somewhere cheaper.

How the calculator decides

  • Severely house poor: housing costs over 50% of gross income.
  • House poor: housing costs over 30% of gross income, or housing, upkeep and debts that cost more than your take-home pay.
  • Stretched: within 30%, but housing over 28%, mortgage plus debts over 36%, or less than 6 months of housing and debt payments in savings.
  • Not house poor: within all of those.
  • Upkeep is budgeted at 1% of the home's value a year and counts against what's left each month, not the 30% ratio.

House poor questions

Do utilities count as housing costs?

Yes, in the Census Bureau and HUD measures of housing cost burden, which count rent or mortgage payments, property taxes, insurance, condo or HOA fees and utilities. Lenders' debt-to-income ratios usually leave utilities out, which is why this calculator shows both.

Is this house poor calculator financial advice?

No. It is an educational check against widely used guidelines. Your situation depends on job security, other savings and goals. A HUD-approved housing counselor can review your budget for free or at low cost.