How Much House Can You Afford in Texas?

Texas property tax rate: 1.67%. Calculate your maximum affordable home price with Texas-specific rates.

You can afford a home up to

$250,743

That's a 1-bedroom condo in Austin

Based on your $75,000 income with 20% down

2-bedroom condo/townhome
$251K$29K more →

Your $250,743 budget buys

Austin1-bedroom condoDenver1-bedroom condoSalt Lake City2-bedroom condo/townhomePhoenix2-bedroom condo/townhomeNew York CityStudio in Upper Manhattan/BronxMiamiStudio apartmentPortland1-bedroom condoNashville1-bedroom condoRaleigh2-bedroom apartment/condoCharlotte2-bedroom condo/townhomeTampa2-bedroom condo/townhomeMinneapolis2-bedroom condo/townhomeChicago2-bedroom condoSan FranciscoNothing yetLos AngelesNothing yetSeattleNothing yet
/Austin
28%Recommended
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%
%

Monthly payment breakdown

$1,750/mo

P&I$1,301
Tax$349
Insurance$100
Calculate your mortgage payment on $250,743Should you rent or buy at this price?

Home price

$250,743

Down payment

$50,149

Loan amount

$200,594

No PMI

Waived (20%+ down)

This is an estimate using Texas's average property tax rate of 1.67%. Actual rates vary by county. Consult a local lender for a pre-approval.

How it works

This calculator uses the 28/36 rule — a widely used guideline for mortgage affordability. Your total housing costs (mortgage, taxes, insurance, PMI, HOA) should not exceed your chosen DTI ratio of gross monthly income.

The calculator works backwards from your income to find the maximum home price that keeps monthly costs within your DTI limit. It uses the standard amortization formula and Texas's average property tax rate of 1.67%.

Texas housing quick facts

Average property tax rate 1.67%
Monthly property tax on $400K home $557
Affordable home at $100K income (28% DTI) $339,389
Monthly payment at $100K income $2,333/mo

Cities in Texas

City-specific affordability data with median home prices and local tax rates.

City Median price Property tax Insurance/yr
Austin $450K 1.75% $2,400

FAQ

How much house can I afford in Texas?

On a $100,000 income with 20% down at 6.75% interest and Texas's 1.67% property tax rate, you can afford approximately $339,389 using the recommended 28% DTI ratio. Your monthly payment would be about $2,333.

What is the property tax rate in Texas?

The average effective property tax rate in Texas is 1.67%. On a $400,000 home, that's approximately $557/month in property taxes. Actual rates vary by county and municipality.

Is Texas expensive for homebuyers?

Texas has above-average property taxes at 1.67%, which reduces how much house you can afford. On a $100,000 income, you can afford about $339,389 — less than states with lower property taxes.

What is the 28/36 rule?

The 28/36 rule says your total housing costs should not exceed 28% of gross monthly income (front-end DTI), and total debt payments should not exceed 36% (back-end DTI). This calculator lets you adjust the DTI ratio from 20% to 40% to find your comfort level.

What is included in the monthly payment for a Texas home?

The monthly payment combines four components — principal, interest, taxes, and insurance — known as PITI. For Texas, that means principal and interest on the mortgage, 1.67% property tax (about $557/month on a $400,000 home), homeowners insurance, and PMI if you put less than 20% down. HOA fees can be added if your property has them.

How much should I save for a down payment in Texas?

A 20% conventional down payment avoids private mortgage insurance (PMI) — for the example $100,000 income affording about $339,389 in Texas, that's roughly $67,878. FHA loans allow as little as 3.5% down for qualified buyers but require ongoing mortgage insurance. VA loans and some first-time-buyer programs may allow 0% down.

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