This Is How Much You Need to Make to Comfortably Afford a $1 Million Home

To afford a $1 million home, financial experts suggest adhering to the '28% rule,' which recommends spending no more than that percentage of gross income on housing costs. This includes mortgage payments, property taxes, and insurance, ensuring that buyers can manage other financial obligations without feeling 'house poor.' With rising living expenses, a conservative cap of 22% is advised to provide a financial cushion for unexpected costs and better savings opportunities.

In Nashville, under a 6.2% mortgage rate, and factoring in local property tax and homeowners insurance, potential buyers need to ensure their total monthly payment—including all housing-related costs—remains within the recommended percentage of their income. For a $1 million home, this equates to a monthly payment of about $5,791, necessitating a substantial income to meet these obligations comfortably and securely.

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