We translated Bay Area incomes into realistic home prices using the 28/36 rule, current 6.75% mortgage rates, and San Francisco-specific taxes, HOA fees, and insurance. Plug these assumptions into the Home Affordability Calculator for your own scenario.
San Francisco Costs: 2025 Baseline
- Median single-family price: $1.35M (SFAR Q3 2025)
- 30-year fixed mortgage rate: 6.75% for 740+ credit
- Property tax: 1.2% of assessed value (Prop 13 capped)
- Homeowners insurance: $180/month average
- HOA (condos/lofts): $500–$1,100/month
- Mortgage insurance: 0.5% annually if down payment < 20%
- Maintenance reserve: 1.5% of value each year ($1,688/month on $1.35M)
These costs feed directly into the Home Affordability Calculator. When comparing your numbers, swap in your HOA, property tax (check county records), and insurance quotes.
Income-to-Home Price Scenarios (28/36 Rule)
The calculator caps your housing payment at the lower of 28% front-end DTI or 36% back-end DTI minus other debts.
$150K Household
- Gross monthly income: $12,500
- Max housing (28%): $3,500
- Max total debt (36%): $4,500
- Assuming $500 monthly debts ⇒ $4,000 housing budget
- With 20% down, max price ≈ $700K
- Monthly payment: $3,950 (PITI + HOA + maint.)
$225K Household
- Gross monthly income: $18,750
- Max housing (28%): $5,250
- Assuming $800 debts ⇒ $5,500 housing budget
- 20% down ⇒ max price ≈ $965K
- Realistically fits condos in Mission Bay, Bernal, or outer Richmond
$300K Household
- Gross monthly income: $25,000
- Max housing (28%): $7,000
- Assuming $1,000 debts ⇒ $8,000 housing budget
- 20% down ⇒ max price ≈ $1.35M
- Supports single-family options in Inner Sunset, Noe Valley, parts of Daly City
All scenarios assume 20% down to avoid PMI. If you only have 10% down, subtract roughly $100K in buying power due to PMI and larger loan amounts.
Monthly Payment Breakdown ($1.2M Purchase, 20% Down)
- Loan amount: $960,000
- Principal & Interest: $6,230
- Property Tax: $1,200
- Insurance: $180
- HOA (moderate condo): $650
- Maintenance reserve: $1,500
- Total monthly: $9,760
To keep DTI within 36%, you’d need at least $27K gross monthly income (~$325K household) or offset with rental income (e.g., house hacking).
Strategies to Boost Affordability
- Increase down payment: Every extra $50K reduces P&I by ~$325/month at 6.75%.
- Pay off car/student loans: Eliminating $400 in other debts adds ~$125K to max purchase price.
- Consider TIC or co-ownership: Fractional ownership can shave 15–25% off list prices, though financing is specialized.
- Target low-HOA buildings: Saving $300/month in HOA increases buying power by ~$45K.
- Leverage shared equity programs: SF’s DALP or employer assistance can bridge down payment gaps.
Run each scenario in the Home Affordability Calculator by adjusting debts, down payment percentage, and HOA inputs to see the impact instantly.
FAQ
Is now a good time to buy in San Francisco?
If you plan to stay 7+ years and can comfortably support the payment (< 36% DTI), locking in today’s prices may make sense. If your income is volatile or you may relocate, renting preserves flexibility.
What income do you need for a $1.5M home?
With 20% down and typical SF costs, you’ll need roughly $350K household income plus minimal other debts to stay under 36% DTI. Use the calculator with your exact HOA/tax numbers to verify.
How do stock-based incomes factor in?
Lenders usually average RSU/bonus income over two years and require proof of continued vesting. For conservative planning, input only guaranteed base salary into the calculator.