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I thought the rule of thumb was 20% of gross pay is what should be spent on housing? 30% seems reasonable to me too.
I was approved for $220k mortgage with a ~$1250/mo payment on a 30 year fixed (includes taxes/insurance) on a $40k income. That was 38% of my gross, but I was putting 20% down and had 2 roommates, which entirely offset the mortgage, taxes, and insurance. The only money I've put into that house in the past 10 years was the initial 20% down ($45k). That averages out to $4,500 per year to own the house and build equity.
All that said, I need to replace 2 fences, a deck, reside the house, and replace the south facing windows. Probably $70k in expenses there if I had someone do all the work.
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