3x - 5x Annual Income
To make sure not getting overwhelmed by stress about housing payments, it's important to buy a house that fits your budget.
To get an idea of how much house you can afford, try this rule of thumb -
First, save an amount equal to 1 time of your annual income. This should cover your down payment and the other expenses associated with buying a house.
For most people who don't have much debt, buying a home that costs about 4 times their annual income can be a good fit. If you've saved up one year's salary, that should provide you with a 20% down payment.
If you have some debt, dial the purchase price of a home back to 3 times your annual income.
If you're completely debt-free, you can consider a home that is up to 5 times your annual income—once you've saved enough for a 20% down payment and have solid cash reserves in an emergency fund.