If you’re making $400,000 a year in Manhattan, you might picture a luxury penthouse with sweeping city views. The truth? The reality is different—but still better than most people expect.
Dy Moss, a real estate expert with almost 30 years of experience in Manhattan, breaks down what this salary truly gets you in the city.
A lot of people think about take-home pay when figuring out how much an apartment they can afford. But in Manhattan, especially with co-op boards, your gross salary is the key number.
Boards use it to calculate your debt-to-income (DTI) ratio, which means the full $400,000 counts—and it can give you more buying power than you realize, especially if you don’t have much debt.
Co-ops vs. Condos
Most of Manhattan’s housing—about 85%—is co-ops. They have stricter rules than condos, but they’re generally more affordable.
When calculating affordability, you have to include both your mortgage and maintenance fees (or “common charges” in condos). Co-ops typically want these payments to be no more than 25–30% of your gross monthly income.
For a $400K salary, that works out to roughly $9,333 per month. Moss suggests using $9,000 for a safer estimate.
Crunching the Numbers
Let’s say you’re considering a one-bedroom apartment on the Upper East Side listed at $900,000. Co-ops usually require a 25% down payment ($225,000), leaving a mortgage of $675,000. At a 7% interest rate, your monthly mortgage would be around $4,500.
Add $1,800 for maintenance and $600 for insurance and other costs, and your total comes to $6,900 per month—well under the $9,000 monthly budget.
Buying a co-op isn’t just about the monthly payment. Many buildings require post-closing liquidity, meaning you need enough cash to cover two years of mortgage and maintenance. In this example, you’d need:
- Down payment: $225,000
- Closing costs: $20,000–$25,000
- Post-closing liquidity: $150,000
- Moving and initial expenses: $15,000
That totals roughly $410,000–$415,000 in liquid cash—big numbers, but necessary for securing a solid one-bedroom in Manhattan.
Best Neighborhoods for Your Budget
A $900,000 budget stretches farthest in neighborhoods like the Upper East Side, Murray Hill, Midtown East, Chelsea, and parts of the Financial District.
If you’re looking at Tribeca or the West Village, you might need to settle for a smaller studio.
Tips to Make Your Money Go Further
- Focus on co-ops with maintenance fees under $2,000/month.
- Look for listings that have been on the market for 60+ days for potential negotiation leverage.
- Co-ops are generally 15–20% cheaper than condos—good value.
- Work with a buyer’s agent experienced in co-op rules.
- Get pre-approved by a lender who specializes in NYC co-ops.
Bottom Line
You don’t need a seven-figure salary to buy in Manhattan. With the right approach, $400,000 a year can get you a legitimate one-bedroom—and sometimes even more.
Moss also offers a free buyer cheat sheet for those ready to navigate the New York City market.
Now is a great time to buy. Interest rates are stabilizing, inventory is tight, and serious buyers can leverage these conditions to their advantage. With planning and the right strategy, your $400K salary can get you exactly what you need in Manhattan.
Author Profile
-
The writer is a real estate journalist specializing in all types of New York City properties, including luxury residences, commercial spaces, and homes.
He also writes humorous articles about real estate, investors, and realtors.
Latest Posts
BlogDecember 15, 2025Houston Real Estate 2026: Growth and Hotspots Ahead
BlogDecember 3, 2025Why Houston Real Estate Investing Is Surging in 2026
BlogNovember 29, 2025Real Estate Market Insights: Why Every Call Matters
PerspectiveNovember 20, 2025Things to do in New York without real estate agents