according to this article. Crazy how much things have changed with home prices and interest rates the last couple of years. Here are the assumptions he makes getting to that number:

“The average monthly payment for a $400,000 home is $3,037,” says Walsh. “That’s based on the typical first-time homebuyer down payment of 7%, average interest rate of 6.61%, average property tax rate of 1%, average homeowners insurance of $140 per month, and average Private Mortgage Insurance of 0.6%.”

Walsh’s salary guideline is also based on the idea that a mortgage payment, including property taxes and insurance, should be no more than 28% of your gross income. This recommendation, however, may or may not be appropriate depending on your other financial commitments and debt.

“If you have other major expenses such as debt payments or childcare, it may be a little more challenging to follow this rule of thumb,” explains Walsh.