How much home you can afford is the right place to start, and the answer depends on several factors working together. The most reliable number comes from a lender reviewing your situation. This post walks through what goes into that number, including how lenders measure debt and how property taxes are figured on each side of the state line, so you understand the moving parts before you sit down with a lender.
The core factors
Affordability is not one figure pulled from the air. It comes from a few inputs:
- Your income. Lenders start from your stable, documented income.
- Your existing debts. Car loans, student loans, credit cards and other monthly payments affect how much room you have for a mortgage payment.
- Your down payment. How much you put down affects your loan amount, your monthly payment and sometimes if you pay mortgage insurance.
- The interest rate you qualify for. Rates change and depend on your credit and loan type, so I don't quote them; your lender will give you a real figure.
These pieces interact, so changing one shifts the others. That is why a lender's review matters.
Debt-to-income ratios
Lenders compare your monthly debt payments with your gross monthly income, before taxes. The Consumer Financial Protection Bureau's example: $2,000 a month in debt payments, including the new mortgage, against $6,000 of gross monthly income is a 33% debt-to-income ratio.
Each loan type and lender sets its own limit. Fannie Mae's Selling Guide, for example, caps the total ratio at 36% for loans underwritten by hand, allows up to 45% when the borrower meets its credit score and reserve requirements, and allows up to 50% for loans approved through its automated system. Missouri's First Place program, run by the Missouri Housing Development Commission, allows up to 45% on government loans for credit scores from 640 to 679 and up to 50% above that. A lender will tell you which limit applies to you.
The costs beyond the mortgage payment
Plenty of buyers focus only on principal and interest, but your monthly cost includes more:
- Property taxes, which depend on the home and the taxing units at its address, including the school district. They are figured differently in Kansas and Missouri, as below.
- Homeowners insurance, which varies by home; it is smart to gather quotes early.
- HOA dues, if the home or community has them. Confirm the current amount and what it covers with the HOA.
- Maintenance and utilities, which are not part of your loan but are part of owning.
Property taxes in Kansas
In Kansas, a home's assessed value is 11.5% of its appraised value. Each taxing unit, such as the county, the city and the school district, sets a levy in mills, and each mill is $1 of tax per $1,000 of assessed value. The first $75,000 of a home's appraised value is exempt from the 20-mill statewide school levy.
School levies alone vary across Johnson County. The Shawnee Mission district's 2025 levy is 50.886 mills, and the Kansas State Department of Education lists Blue Valley's 2025-26 levy at 53.618 mills, before the county, city and other units add theirs.
In Johnson County, the appraiser mails notices of appraised value by March 1, tax bills are mailed November 15, and the first half (or the full year) is due December 20. Under a 2021 Kansas law, county clerks also send an estimated notice of taxes before budgets are set. It is not a bill; it shows whether each taxing unit plans to exceed its revenue neutral rate and when its public hearing is.
Property taxes in Missouri
In Missouri, residential property is assessed at 19% of its value, and counties set new values as of January 1 of each odd-numbered year. The same values carry into the following even-numbered year, except for new construction and improvements. Local levies are applied to the assessed value, so the bill again depends on the address.
When you add these in, the picture of what you can comfortably afford becomes much clearer.
Run the numbers yourself first
Before you talk with a lender, it can help to try different inputs and see how they move. The mortgage calculator lets you adjust the price, down payment and other figures to get a rough monthly payment. Treat it as a sketch, not a final answer, since it cannot know your exact rate, taxes, insurance and dues. Once you have real numbers, everything lines up better.
Pre-approval gives you the real number
The most important step is getting pre-approved. A lender reviews your income, savings, credit and debts to tell you a realistic price range and what your payment might be. Once you apply, the lender must send a Loan Estimate within three business days, showing the estimated rate, payment, taxes, insurance and closing costs. If you are not sure where to begin, I can point you to lenders so you can compare.
Pre-approval is also the first step in the home-buying timeline, and the first-time buyer guide covers the Kansas and Missouri down payment programs.
What you can borrow and what feels right
There is a difference between your maximum approval and your comfortable budget. The approval shows what you could borrow; your budget reflects what fits your life, including savings goals and a cushion for the unexpected. Many buyers choose to land somewhat below their ceiling so the payment does not feel tight. We will talk through both numbers so you make a choice you are comfortable with for years, not just on closing day.
Affordability across the metro
The Kansas City area lets you look on either side of the state line, and because I am licensed in both Kansas and Missouri, we can compare homes across the whole metro. Taxes and insurance differ between the two states and from one community to the next, so review the complete picture for any home you are serious about. The guide to buying across the state line compares the two sides, and the buyer guide and home search are good places to keep going once you have a budget.
Contact Tom
Tom Staats is a REALTOR® with Keller Williams Realty Partners, Inc. in Overland Park, licensed in Kansas and Missouri. If you want help turning a budget into a focused home search anywhere in the Kansas City metro, call or text 913-777-4461.
Common questions
How do I figure out how much home I can afford?
It comes down to several factors together: your income, your existing debts, your down payment, the interest rate you qualify for, and ongoing costs like property taxes, insurance and any HOA dues. A lender can review your full picture and tell you what you qualify for and what the monthly payment would be.
What debt-to-income ratio do lenders allow?
It depends on the loan. Fannie Mae's guide, for example, caps total debt-to-income at 36% for manually underwritten loans, up to 45% with certain credit scores and reserves, and 50% for loans run through its automated system. Your lender will tell you the limit for your loan.
Is the amount I am approved for the same as what I should spend?
Not necessarily. A pre-approval shows what you could borrow, but a comfortable budget also allows for savings, other goals and maintenance, so many buyers choose to spend below their maximum. I will help you think through both numbers.
How are property taxes figured in Kansas and Missouri?
In Kansas, a home is assessed at 11.5% of its appraised value; in Missouri, residential property is assessed at 19% of its value. Each taxing unit's levy is then applied to the assessed value, so the bill depends on the address.
Can Tom help me compare affordability on both sides of the state line?
Yes. I am licensed in both Kansas and Missouri, so we can compare homes across the metro. Taxes, insurance and other costs differ between the two states, so it is worth reviewing the full picture for any home you are serious about.
Related pages
Sources
- Consumer Financial Protection Bureau: What is a debt-to-income ratio? (modified August 30, 2023)
- Fannie Mae Selling Guide: B3-6-02, debt-to-income ratios (April 2, 2025)
- Missouri Housing Development Commission: First Place Loan Program operations manual (revised March 11, 2026)
- Consumer Financial Protection Bureau: What is a Loan Estimate? (reviewed August 9, 2024)
- Johnson County Appraiser: Frequently asked questions (2026)
- Johnson County Appraiser: Important dates and deadlines (2026)
- Shawnee Mission School District: Property tax explainer (2025 levies)
- Kansas State Department of Education: Budget at a Glance 2026-2027, USD 229 (2026)
- Johnson County: Estimated notice of taxes (2026)
- Revisor of Missouri: Section 137.115 RSMo, assessment of real property (effective January 1, 2026)