40% of your income is $680 per month. 41% is just under $700. If you go that high in housing expense it will leave you only $1,000 for all of your other living costs.... A condominium priced at $80,000 would be about $430 per month plus HOA dues of $200, property taxes and insurance would take you to about $680.
An $80,000 house would probably require expensive repairs, so they are out there at $80,000, but the VA won't loan on fixer houses.
You already have no taxes, so there is no tax benefit to you for owning a house.