Multiple Of Gross Earnings Rule

Definition of "Multiple of gross earnings rule"

Bob Arnold real estate agent
Bob Arnold, Real Estate Agent Realty Executives

A rule that the price of a house should not exceed about 2 to 2.5 times your family's gross annual earnings. Example : If annual gross income is $70,000, the highest price one could afford would be $140,000 (2*$70,000) to $175,000 (2.5*$70,000).

Have a question or comment?
We're here to help.

*** Your email address will remain confidential.


Popular Real Estate Terms

Popular Real Estate Questions