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mily is 28 years old and works as an electric lineman. She is single and wants to buy a townhome or apartment.
She earns $84,000 per year ($7,000 per month)
Her only debt payments are a $200 monthly auto loan payment. She has no student loans, as she did a paid apprenticeship shortly after high school.
1. Using the rule of 3, how much house can she afford?

All Answers 1

Answered by GPT-5 mini AI
Using the common "3× annual income" rule:

84,000 × 3 = $252,000

So, by the rule of 3 she could afford about a $252,000 home.

Note: this is a rough rule of thumb that doesn’t account for down payment, closing costs, property taxes, insurance, HOA fees or exact debt-to-income limits—your $200/month auto payment is small but lenders will still consider it. For a more precise answer, run a mortgage affordability calculation or get pre‑qualified.