For decades, homebuyers were told to follow one golden rule:
Don’t spend more than 30% of your income on housing.

Simple, right? That rule has shaped budget calculators, mortgage advice, and even how buyers think about “affordable” living. But here in 2025, that number just doesn’t hold up anymore—especially in today’s market.

According to Realtor.com®, the average household would now need to spend over 44% of their income to afford a median-priced home in the U.S. In some big cities, that number climbs past 100%. And while Brevard County might not be quite that extreme, buyers across the Space Coast are feeling the pinch too.

So if you're staring at home prices in Palm Bay, Melbourne, or Viera and wondering, “Why doesn’t this math make sense?”—you're not alone. The truth is, the old rulebook doesn’t work anymore.

But that doesn’t mean homeownership is off the table.
It just means we need a smarter, more personalized way to budget.

What the 30% Rule Got Right (And Where It Fell Short)

Believe it or not, the 30% rule isn’t some ancient financial wisdom—it actually comes from a 1969 housing policy called Brooke Amendment. Back then, public housing rent was capped at 25% of income, and it eventually crept up to 30%. Over time, it turned into a go-to standard for lenders, advisors, and online budget tools.

And for a while, it served people well. It encouraged healthy financial habits and left room for things like savings, emergencies, and everyday life.

But here’s the problem—it was never meant to be one-size-fits-all. It doesn’t reflect:

• Regional price differences (a $1,500 mortgage in Titusville hits differently than in Miami)

• Your personal expenses—like student loans, childcare, or medical bills

• Interest rates that have more than doubled in recent years

• Fast-rising home prices (especially in growing areas like West Melbourne and Cocoa)

So instead of forcing your future into an outdated formula, let’s walk through a more flexible, more realistic way to budget for your next home.

A Smarter Way to Budget for a Home in 2025

1. Know Your Monthly Comfort Zone

Instead of starting with a percentage, start with this question:

How much can I spend each month and still live the life I want?

Take into account things like:

• Your current rent or housing costs

• Fixed bills (car, insurance, groceries, etc.)

• Debts or loan payments

• Your savings goals and emergency fund

• The things that matter to you—travel, hobbies, weekends at the beach, or kids’ sports

Once you have your number, you’ll have a much clearer idea of what a truly comfortable monthly payment looks like.

2. Understand the Real Cost of Buying

The list price of a home—say, $425,000 in Satellite Beach—only tells part of the story. To really plan ahead, you need to factor in:

• Mortgage principal + interest

• Property taxes (which vary by city in Brevard)

• Homeowners insurance (higher in coastal zones)

• Private mortgage insurance (if you’re putting down less than 20%)

• HOA fees (common in planned communities and condos)

• Utilities and ongoing maintenance

A good lender can break all this down for you before you ever make an offer—and I’m happy to connect you with one I trust.

3. Use the 30% Rule as a Guidepost, Not a Gatekeeper

Spending more than 30% doesn’t automatically mean you’re in financial danger—especially if you have minimal debt or a strong emergency fund.

But if your housing costs are creeping toward 45–50% and you’re juggling credit card payments, student loans, or variable income, that’s a red flag. It might be time to pause, re-evaluate, and look for a better fit.

4. Get Strategic—and Stay Local

Affordability is about more than just price. It’s about strategy and timing. Here are a few ways to make your numbers work better:

• Broaden your search radius — sometimes just moving 10–15 minutes inland from the beach can save you tens of thousands.

• Explore new construction — some Brevard builders offer closing cost help or rate buydown programs.

• Ask about creative financing — sellers are more open now than they’ve been in the last few years.

• Focus on your right now home, not your forever home — it’s okay to take a stepping-stone approach.

The Bottom Line

Yes, the 30% rule is outdated—but the reason behind it still matters.

You want a home that supports your lifestyle, not one that stretches you too thin. And here in Brevard County, that is possible when you budget based on your reality—not just old rules.

If you’re thinking about buying and want to understand what you can truly afford, I’d be happy to help you map it out. Let’s take a look at your goals, your numbers, and what makes the most sense for you.

📲 Feel free to reach out anytime. No pressure, no rush—just honest guidance when you're ready for it.

Sources: Realtor.com, HUD