What Is the 3-3-3 Rule in Real Estate?

What Is the 3-3-3 Rule in Real Estate?

When planning to buy a home on the Kitsap Peninsula, one smart strategy to follow is the 3-3-3 Rule — a simple guideline that helps buyers stay financially stable and avoid overextending themselves. Whether you’re shopping for a home in Bremerton, Poulsbo, Port Orchard, or Gig Harbor, this rule can help ensure you make a sustainable investment.

Breaking Down the 3-3-3 Rule

The 3-3-3 rule can vary depending on context, but in real estate finance it’s often summarized as:

1. Three Months of Expenses Saved:
   Before buying a home, have at least three months’ worth of living expenses (including mortgage payments, utilities, and other bills) set aside. This creates a safety net in case of job loss, medical emergencies, or unexpected repairs.
   
   

2. Home Price Within Three Times Your Annual Income:
   Your home’s purchase price should generally not exceed three times your gross annual income. For example, if you earn $100,000 per year, look for homes around $300,000 or less. In Kitsap County, where housing prices can vary widely between areas like Bainbridge Island and Port Orchard, this rule helps you focus your search within a manageable range.
   
   

3. Spend No More Than 30% (or “Three Tenths”) of Monthly Income on Housing:
   Keep your monthly housing costs — mortgage, taxes, insurance — below 30% of your gross monthly income. This ensures you maintain financial balance and flexibility for other goals like travel, savings, or home improvements.
   
   

Why It Matters in the Kitsap Market

Kitsap’s real estate market continues to be competitive, with strong demand from both Seattle-area commuters and local buyers. Applying the 3-3-3 rule helps you stay confident when making offers — especially as prices shift between different Kitsap communities.

Work with a Local Expert

Navigating affordability and market timing is easier with an experienced agent. Bre Enbom of Infinity Real Estate brings deep knowledge of the Kitsap Peninsula’s neighborhoods, pricing trends, and investment opportunities.

📞 Ready to find a home that fits your lifestyle and budget?
Contact Bre Enbom today for personalized guidance on buying smart in Kitsap County.