The guideline lenders start from
A common starting point is that housing costs stay near 28% of gross monthly income and total monthly debt near 36%. Lenders and loan programs set their own limits, and many allow more, but these ratios are a sensible sanity check.
Why the town changes your budget
The NJ Division of Taxation publishes an effective tax rate for every municipality, meant for comparing towns. Multiply a home’s market value by that rate to ballpark the annual tax. At a higher effective rate, more of your monthly budget goes to taxes and less to the loan, so the price you can afford drops.
Compare rates across towns on the lowest property tax towns list.
Mortgage rates move the number too
Freddie Mac’s weekly survey put the U.S. average 30-year fixed rate at 7.18% for the week of November 5, 2026. Your rate depends on your credit, down payment and loan type. See mortgage rates explained.
Run it
Use the NJ mortgage & affordability calculator. Enter your income, debts and a town, and it shows a payment and an approximate price range.
Questions, answered
What income do I need to buy a $600,000 house in NJ?
It depends on your down payment, rate, debts and the town’s tax rate. Enter those in the affordability calculator to see the payment and what the 28/36 guideline implies.
General information, not legal, tax or lending advice. Rules change; confirm with your attorney, tax professional or lender.