What is the 3-3-3 rule in real estate, and does it actually change what you should do in Denver?

The 3-3-3 rule in real estate is a way of thinking about affordability before you ever step into a home. The idea is simple: spend no more than three times your annual gross income on a home, keep your monthly housing costs under thirty percent of your monthly gross income, and put down at least thirty percent. That's the framework. Three numbers, one filter. Here's what's worth knowing about it. The 3-3-3 rule is a guideline, not a law. It's built on a version of the world where incomes, prices, and borrowing costs all sit in a particular relationship to each other. When any one of those things shifts significantly, the rule starts to bend. That doesn't mean it's useless. It means you have to understand what it's actually doing, which is giving you a quick gut check, not a contract. In Denver, where prices have moved considerably over time, this rule can feel like it's describing a different city. A household income that would clear the 3-3-3 filter comfortably in many parts of the country might land you in a much narrower slice of the Denver market. That's not a reason to ignore the rule. It's a reason to understand what it tells you and what it doesn't. What the rule is really pointing at is cushion. It's asking whether you can absorb the unexpected, because ownership comes with costs that don't show up in the purchase price. Insurance, maintenance, a furnace that doesn't care about your timeline. The number is a proxy for breathing room. If you're weighing a move in Denver and the 3-3-3 math doesn't land cleanly, the question worth sitting with isn't whether you qualify. It's whether the monthly picture leaves you enough room to live the rest of your life without the house becoming the only thing you're paying for. Tammy Morran, The HomeBridge Group @ eXp Realty