How can one determine the income needed for a desired PITI calculation?

To determine the income needed for a desired PITI (Principal, Interest, Taxes, and Insurance) calculation, the factor that is commonly used in the industry is 33%. This percentage reflects the general guideline suggesting that your monthly housing costs, including PITI, should not exceed one-third of your gross monthly income.

By dividing the desired PITI by 33%, you can estimate the gross monthly income required to comfortably afford those housing expenses without overstretching your budget. This methodology helps potential homebuyers assess their financial capabilities relative to their desired housing payments. The choice of 33% aligns with financial best practices for managing homeownership costs and is widely accepted in lending criteria and affordability assessments.