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How much home can I afford with rising interest rates?

Put your best foot forward when making an offer

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In today’s hot market, there are often stories of bidding wars and multiple offers.

For many, purchasing a home is a significant, exciting expenditure. It’s one of the biggest financial decisions many people make, and it’s one that is worth considering carefully. Often, in a market as competitive and fast-moving as the current one, homebuyers find themselves looking at potential homes and realizing that a highly competitive offer may be necessary. There are often stories of bidding wars and multiple offers being made on available homes in a matter of days. 

While that may not be the case forever, what will remain true is that most homebuyers want to put their best foot forward when making an offer. Most buyers want to find a home they love, that they can bid on competitively, and that they can afford if they end up being the chosen buyer. This begs the question – what type of offer is reasonable to make given your financial circumstances? How much home can you afford? These are important questions to ask.

A closer look at the calculations

Determining how much you can comfortably spend on the mortgage for a new home while still meeting all of your other existing financial obligations is an important calculation to make ahead of time. After all, purchasing a home is a decision that can significantly impact your financial situation, so you want to be sure that you’re fully informed and that you feel confident in the choice you make. 

Often, the rule of thumb where mortgages are concerned is that you can “afford” a mortgage that is around 2 to 2.5 times your income. A mortgage payment is typically made up of four primary components – principal, interest, taxes, and insurance. It is important to consider each of these components when determining the total amount of the mortgage, and what percentage of your annual gross income will go toward that payment. Often called the front-end ratio, or mortgage-to-income ratio, you’ll want to consider that percentage and usually seek to secure a mortgage payment that does not exceed roughly 28 to 30% of your annual gross income. Considering the numbers is only a part of the picture, however.

Looking beyond the numbers

Making this decision is not always strictly a matter of numbers and calculations. It also involves carefully considering your priorities and preferences and truly making a decision that you feel will give you the freedom to live in a home that you love and enjoy, while also continuing to maintain the lifestyle that you love. Determining how much house you can afford will depend on a variety of factors, including:

Your loan amount and the term of years over which your mortgage will last;

Your income;

Your total monthly expenses;

Any taxes you might be required to pay, property or otherwise;

Current mortgage rates and estimated closing costs;

Any homeowners’ association fees;

Any other relevant factors that you determine should be considered in consultation with a trusted agent. 

After considering all of these factors, be certain to keep in mind that it’s also important to be realistic as you make your decision about what you can comfortably afford. Don’t underestimate your monthly expenses. It may not be helpful to tell yourself that you’ll cut back on leisure spending if you don’t think you really will, or to underestimate what you might need in an emergency fund for unexpected events. Doing so can often leave you in a difficult spot where debt can accumulate quickly. If anything, it’s best to overestimate your expenses so that you have some breathing room in your budget. 

We’re here for you

Wherever you are in the real estate process – if you’re searching for the perfect home to buy, considering whether now is the time to sell, or anywhere in between – at GayRealEstate.com, we’re here for you. We are passionate about connecting LGBTQ buyers and sellers across the country with talented, experienced, and LGBTQ-friendly real estate agents who know and love the communities in which they live and are ready to help you calculate just how much home you can afford, and connect you with a top LGBTQ+ mortgage lender for prequalification. Having the right agent can make all the difference to your real estate experience, and we want it to be the very best it can be. If we can help you, visit us at GayRealEstate.com today to get connected and get started. 

Jeff Hammerberg is founding CEO of Hammerberg & Associates, Inc. Reach him at 303-378-5526 or [email protected]

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Real Estate

Introducing Next-Generation Assisted Living & Memory Support.

Now Available in Tysons: Kokua at The Mather

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We have good news for those seeking assisted living or memory support for a loved one: a fresh, hospitality-driven approach to care is now available in the heart of Tysons, Virginia. Kokua at The Mather opened in fall 2025 and provides residents with collaborative care as well as everyday possibilities for creativity, purpose, and connection. 

For a limited time, Kokua is welcoming new residents with exclusive move-in incentives. 

“Kokua is a Hawaiian word meaning ‘To extend help to others without expecting anything in return,’” explains Brandon Davidson, Administrator. “If you’re seeking support for a loved one, Kokua is worth a closer look. We take an individualized approach to care, with evidence-based practices provided by a dedicated, interdisciplinary team.” 

LIMITED-TIME OPPORTUNITY

“At Kokua, we focus on the individual. We blend care with our research-driven approach to deliver personalized wellness tailored to residents’ needs and preferences,” says Davidson. 

Residents enjoy the freedom to choose from enriching programs, meaningful social opportunities with experiences such as sensory walks, meditation, acupuncture, Reiki, songwriting workshops, poetry readings, Sensory Symphony Swim, and more.

Assisted Living in Ādar

Ādar means “respect”, and Kokua delivers. Comfortable residential living is combined with caring assisted living services, enabling residents to remain as independent as possible. Each one-bedroom apartment home (ranging in size up to nearly 900 square feet) offers generous space and thoughtful design, complemented by assistance with daily living tasks and emergency response systems for peace of mind. 

Memory Support in Miran

Miran means “peaceful”—another pillar in the Kokua way of life. Private suites are designed for those with mild to moderate Alzheimer’s disease, dementia, or similar cognitive conditions. “Our person-centered approach embraces individual strengths and needs, with an interdisciplinary team that includes a staff member in attendance 24 hours a day to assist with event reminders and activities of daily living,” says Davidson. “Residents have access to a variety of opportunities to connect, express, and explore their potential through social events, wellness programs, creative arts, and more.”

Kokua offers the next generation of care in these areas, with a commitment to highly personalized service. 

INSPIRED AMENITIES & BOUTIQUE SERVICE

Nestled in a lively urban neighborhood, Kokua incorporates biophilic design that brings the outside in to enhance health and wellbeing. 

Throughout Kokua, residents enjoy a collection of thoughtfully designed spaces and top-shelf hospitality in an upscale community. Beautifully appointed gathering spaces create flexible opportunities for wellness, connection, and everyday enjoyment. A spacious outdoor terrace, demonstration kitchens, art and music studios, and more are used for an array of programs and are available to residents and their visitors. Multiple restaurants offer chef-prepared cuisine with flexible, open-hour service.

“Here at Kokua, we’re offering the next generation of care in Ādar and Miran, and it’s available to the public for a limited time,” says Davidson. Now is an ideal time to explore the personalized care and quiet luxury that Kokua at The Mather has to offer.

For more information, download a brochure at www.themathertysons.com/kokua. To schedule a visit or for additional details, contact Kokua at [email protected] or (571) 282.3650.

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Real Estate

Honey, have we been priced out of gay paradise?

Rehoboth remains more accessible than many queer beach destinations

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There are still pathways to homeownership in Rehoboth Beach. (Washington Blade file photo by Daniel Truitt)

Let’s set the scene, darlings. It’s a scorching July Saturday. You’ve got a trunk full of rosé, a playlist that slaps harder than a “RuPaul’s Drag Race” elimination, and a group chat blowing up with your people en route to Rehoboth Beach — the Delaware beach town that has been the LGBTQ community’s summer headquarters for decades. Sun, sand, Poodle Beach, drag shows, and the kind of easy, breezy freedom that only comes from being surrounded by your tribe.

Now imagine pulling up to a “FOR SALE” sign on that charming two-bedroom cottage two blocks from the boardwalk — the one you’ve been eyeing for years — and seeing the price tag: $1.97 million. Honey, put the rosé down. We need to talk.

Nation’s Summer Capital Has a Spending Problem

Rehoboth Beach has long worn the nickname “The Nation’s Summer Capital” like a crown, owing to the annual migration of Washingtonians — and increasingly, Philadelphians and New Yorkers — who descend on its 27 miles of Atlantic coastline every summer. For the LGBTQ community in particular, Rehoboth has never been just a beach town. It has been a sanctuary, a second home, a place where you can hold your partner’s hand on the boardwalk without a second thought. But the real estate market? She is not reading the room.

According to Redfin data, the median sale price of a home in Rehoboth Beach recently hit $1.96 million — a jaw-dropping 106% increase year over year, and a figure that sits 127% above the national median. The price per square foot has climbed to $1,160, up nearly 27% in the same period.  Gag.

So Who IS Buying Right Now?

Let’s not be dramatic — people are still buying in Rehoboth. They’re just a specific kind of people. According to neighborhood data, the per capita income in Rehoboth Beach runs around $118,239, equating to a household income of nearly $473,000 for a family of four. About a third of the workforce telecommutes, many in high-earning, white-collar professions. And more than 68% of residents hold a college degree, compared to a national average of under 22%.

If you want to buy a median-priced home in Rehoboth today with a standard 25% down payment, you’d need to bring nearly half a million dollars to closing — and then cover about $4,000 a month in ongoing expenses.

Still, the market isn’t quite the frenzy it was at peak pandemic frenzy. Homes are sitting on the market for an average of 88 days as of early 2026 — up significantly from the frantic bidding wars of a few years ago, when a listing might vanish before you could refresh Zillow a second time. Sellers are (slowly) getting the memo that buyers have limits.

Have Your Beach House (and Airbnb It, Too)

Many LGBTQ buyers have discovered a savvy workaround to Rehoboth’s sticker shock: buy a property, rent it during peak season, and let your summer visitors essentially pay your mortgage.

The numbers surprisingly support this strategy. The Rehoboth Beach short-term rental market currently has around 928 active listings, with hosts averaging $400 per night and annual revenues of approximately $39,689. The busiest month, predictably, is July — when guests book an average of 96 days in advance (so yes, those summer reservations your friends keep missing out on are being snapped up in April).

The key is making your property stand out in a crowded market. Properties accommodating eight or more guests dominate the Rehoboth STR market (nearly half of all listings), so that five-bedroom house with a game room suddenly starts to look like a business plan. At the same time – keep in mind that location, location, location honey – that is also so valuable. Even a two-bedroom condo close to the beach will also rent favorably well and get those numbers needed to make the most sense to your pockets.

This method allows you to have a second home, enjoy it, have friends enjoy it, and also helps recoup some of the overhead so the overhead and increase in overall purchase price is a bit more manageable.

What It All Means for Our Community

Rehoboth has always been more than real estate. It is one of the few places on the East Coast where LGBTQ people have, for decades, built an actual physical community — businesses, organizations, gathering spaces, neighborhoods — not just a social scene. CAMP Rehoboth, Poodle Beach, the Blue Moon (which, after some drama, was recently sold to new owners who pledged to keep it a queer-affirming space — phew), and countless gay-owned restaurants and shops form an ecosystem that attracts our community every summer precisely because the roots run deep.

But ecosystems require people — year-round residents, small business owners, artists, service workers — not just wealthy second-home owners. When prices rise to the degree they have in Rehoboth, the people who sustain that community can no longer afford to stay. It’s a pattern playing out in LGBTQ neighborhoods from San Francisco’s Castro to New York’s Chelsea, and it’s worth watching closely here.

The good news? Rehoboth remains more accessible than many comparable queer beach destinations. Provincetown, Mass. — the other iconic LGBTQ beach town on the Eastern seaboard — regularly sees median home prices north of $1.5 million with far less inventory and a significantly smaller footprint.

And Delaware’s tax structure does the community a quiet but important favor: no state sales tax, among the lowest property tax rates in the country, and relatively favorable income tax treatment for retirees. These aren’t glamorous talking points, but they matter when you’re running the numbers on whether your beach house dream can actually pencil out.

The Bottom Line, Babe

Can our community still afford Rehoboth? The honest answer is: it depends on what you mean by Rehoboth.

If you mean a single-family home within walking distance of Poodle Beach with an ocean view and a wraparound porch — prepare to spend north of $1.5 million, need a household income pushing six figures annually, and move fast when something comes to market.

If you mean a condo or townhome in the greater Rehoboth area – or a property you plan to rent out in peak season to offset costs — there are still real pathways in.

And if you mean belonging to a community, showing up every summer, taking up space on that beach, supporting LGBTQ-owned businesses, and making sure Rehoboth’s queer identity doesn’t get washed away by the luxury market tide — well, that part doesn’t have a price tag.

It just requires showing up. So pack the car. Bring the rosé. The beach is still ours.


Have a real estate question or Rehoboth market tip? Reach out to [email protected] for LGBTQ-friendly real estate resources in the Rehoboth area.

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Real Estate

The rise of accidental landlords

How changing market conditions are impacting property management

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In a buyer’s market, many sellers are looking to rent their homes rather than reduce the sales price. (Photo by zimmytws/Bigstock)

Why are there more “accidental landlords” renting out their properties in the Washington, D.C., metro area? 

The answer, according to The New York Times and other sources, is the current state of the real estate market. A growing number of accidental landlords are emerging as homeowners rethink their options in a challenging sales market. Rather than accept lower offers than they feel their properties deserve, many are choosing to rent instead of sell. 

This shift reflects both financial caution and changing market dynamics, where holding onto an asset and generating rental income can seem more appealing than locking in a perceived loss.

A Market in Transition

The D.C. housing market remains fundamentally strong, but it has clearly shifted from the frenzied seller’s market of prior years. Inventory has increased significantly, and according to Redfin, active home listings in the Washington, D.C., metro area have increased significantly, with reports indicating a rise of roughly 33% to 50% year-over-year in late 2025 and early 2026. 

This surge in inventory, coupled with falling demand, has shifted the market in favor of buyers, with roughly 22% more homes for sale than interested buyers. At the same time, homes are taking longer to sell. Buyers are still active, but they’re more selective, more price-sensitive, and less likely to engage in bidding wars.

This combination of rising inventory and longer selling timelines has created a key tension: sellers are no longer guaranteed the price they want. What’s a homeowner to do? Rent.

Why Homeowners Are Choosing to Rent

Rather than reduce their asking price, many homeowners are choosing to hold onto their properties and rent them out. National data confirms this shift. According to a report from Zillow, the share of rental listings made up of homes that failed to sell has climbed to near-record levels, with these accidental landlords accounting for a growing portion of rental supply. The number of these homeowners nationwide is at a three-year high.

The underlying psychology is simple: most sellers are not under immediate pressure to sell. And instead of accepting what they perceive as a discounted price, they opt to generate rental income and wait for more favorable market conditions.

For many homeowners, renting offers a way to “pause” the sales process without exiting the market entirely.

The Ripple Effect on the Rental Market

This influx of accidental landlords is reshaping the rental landscape. And this could be you!

  1. This trend is increasing rental supply. When unsold homes are converted into rentals, they add inventory to a market that has already seen new apartment deliveries and multifamily expansion. This is one reason rent growth has cooled in recent months, with national increases slowing to modest levels. 
  1. Additionally, it is changing the type of available rental housing. Accidental landlords are more likely to offer single-family homes, townhouses, or condos; properties that differ from traditional apartment stock. Zillow notes that single-family homes make up the largest share of these rentals now.

For renters in D.C., this means more choices, particularly in neighborhoods where rental inventory was previously limited.

Operational Challenges for Accidental Landlords

While renting may seem like a straightforward fallback strategy, many accidental landlords quickly discover that property management is a complex, operationally intensive business. Some of the most common challenges include:

  • Tenant screening and leasing compliance. D.C. has robust tenant protections and rent control regulations, particularly for older multifamily buildings. One wrong step can create legal complications home owners are not prepared for.
  • Maintenance and repairs. Deferred maintenance can quickly erode profitability and tenant satisfaction. And tenants do have the power to cut into your monthly profit when certain livability standards are not met.
  • Cash flow management. Not all rental income covers mortgage payments, especially for owners with higher interest rates. 
  • Regulatory compliance. Licensing, inspections, and rent stabilization rules can create administrative burdens.

In short, many homeowners underestimate the complexity involved in the transition from owner-occupant to landlord. What begins as a temporary strategy can evolve into a long-term operational commitment.

Property Management Firms Are Stepping In

As a result, property management companies across the D.C. metro area are seeing increased demand, particularly from first-time landlords. These owners often lack the infrastructure, systems, and expertise required to manage a rental property effectively. Professional management firms provide an array of solutions including marketing and leasing services, tenant screening and placement, rent collection and financial reporting, maintenance coordination, and compliance with D.C.’s evolving regulatory environment. For accidental landlords, outsourcing these functions can turn a reactive decision into a more structured investment strategy.

Green Renting: A Strategic Advantage in D.C.’s Rental Market

One often overlooked opportunity for accidental landlords—especially in Washington, D.C.—is the growing demand for “green renting.”

Energy efficiency is no longer just a lifestyle preference. For many renters, particularly in a high-cost city like D.C., it is a financial decision. Utility costs in the District can be significant, especially during peak summer and winter months. Properties that offer lower monthly energy expenses immediately stand out in a competitive rental market.

Installing solar panels, where feasible, can meaningfully reduce or even offset tenant electricity costs. For renters comparing similar properties, the difference between a standard utility bill and a reduced or stabilized energy cost can be a deciding factor. This is particularly true in D.C., where tenants are often highly-informed, environmentally-conscious, and sensitive to total monthly living expenses, not just base rent.

For landlords, the benefits extend beyond tenant appeal. Solar installations can help reduce vacancy, support longer lease terms, and create a premium perception that differentiates a property from competing listings. In some cases, landlords may also benefit from local incentives, tax credits, or increased property value tied to energy improvements.

In a market where many accidental landlords are competing on similar housing stock—single-family homes, condos, and townhouses—energy efficiency can become a key differentiator. It is not just about sustainability; it is about positioning a property to perform better financially.

A Local Market With Unique Dynamics

Washington, D.C., is a housing market shaped by federal employment, policy changes, and macroeconomic uncertainty. Recent developments, including fluctuations in the federal workforce and return-to-office mandates, have influenced both housing supply and demand. In some cases, these shifts have contributed to increased listings and more cautious buyer behavior. At the same time, D.C.’s high cost of entry continues to support rental demand. This dual dynamic creates ideal conditions for the rise of accidental landlords. Are you ready for this seismic shift? 


Scott Bloom is owner and Senior Property Manager of Columbia Property Management.

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