Income needed to buy a house in Texas
A median-priced home in Texas costs $313,200. With 20% down you'd need about $95,892 a year, $16,171 more than the state's median household income of $79,721. Texas ranks #27 of 51 for the lowest income needed.
Income needed: $95,892 a year
Defaults: state median home value and property tax (Census ACS 2024), median homeowners insurance paid by owners with a mortgage (Census ACS 2024; quotes vary by home and ZIP code), 30-year rate 7.24% (Freddie Mac, week of 2026-10-29).
Estimated household income: about $95,892 a year for a $313,200 home in Texas with $62,640 down.
Uses a 28/36 planning rule: modeled housing costs at 28% of gross income, housing plus other debt payments at 36%. Mortgage approval depends on the lender, loan program, credit and other circumstances. Excludes maintenance, repairs and utilities.
| Monthly cost | Amount |
|---|---|
| Principal & interest | $1,708 |
| Property tax | $342 |
| Homeowners insurance | $188 |
| Total | $2,237 |
Monthly cost by down payment
| Down payment | Cash down | Monthly cost | Income needed |
|---|---|---|---|
| 5% | $15,660 | $2,682 | $114,927 |
| 10% | $31,320 | $2,568 | $110,073 |
| 20% | $62,640 | $2,237 | $95,892 |
Income benchmarks use the 28/36 planning rule with no HOA or other debt payments. Mortgage approval depends on the lender and loan program. Monthly costs exclude maintenance, repairs and utilities. Under 20% down includes estimated private mortgage insurance of 0.5% of the loan per year.
Buying in Texas: what's different
- Transfer tax
- None
- On the median home
- $0
- Homestead break
- $140,000 off school taxes
- First-time buyer help
- Texas Department of Housing and Community Affairs
- Transfer and recording taxes. Texas has no transfer tax, and the state constitution has barred one since 2015.
- Property tax breaks for your home. School districts must exempt $140,000 of a homestead's value (another $60,000 at 65 or older or if disabled), and other local governments can exempt up to 20%. If you buy after January 1, you can still get the exemption for the rest of that year as long as the seller didn't claim it. Apply with the county appraisal district.
- First-time buyer help. The Texas Department of Housing and Community Affairs offers My First Texas Home through participating lenders (a 30-year mortgage with down payment help for first-time buyers). Check its site for income and price limits.
- Insurance. In 14 coastal counties and parts of Harris County, wind and hail coverage often comes from the Texas Windstorm Insurance Association, which generally requires a windstorm certificate of compliance showing the home meets building codes. Ask the seller for it before you close.
Checked against official sources on September 25, 2026. Local transfer taxes and exemptions vary, so confirm with the county before you close.
Home prices in the Texas metro areas we cover
| Metro area | Income needed | Median home value | Median household income |
|---|---|---|---|
| Dallas, TX | $119,106 | $389,500 | $92,733 |
| Houston, TX | $101,503 | $327,400 | $81,417 |
| San Antonio, TX | $94,626 | $304,800 | $78,112 |
| Austin, TX | $145,477 | $482,800 | $99,897 |
| McAllen, TX | $54,984 | $164,200 | $56,720 |
| El Paso, TX | $69,745 | $208,800 | $59,834 |
| Killeen, TX | $82,528 | $268,400 | $68,465 |
With 20% down, the median home takes about $54,984 a year in the McAllen area and $145,477 in the Austin area, compared with $95,892 for the statewide median.
Metro medians from Census ACS 2024 cover the whole metro area, including any part in a neighboring state. Income needed: 20% down at 7.24%, the metro's median property tax and its main state's median homeowners insurance for homes with a mortgage (Census ACS 2024), under the 28% rule.
What makes owning in Texas about average among states
- Home prices: the median value of $313,200 is 13% below the U.S. median of $360,600.
- Property tax: about 1.31% of value a year ($342 a month on the median home).
- Insurance: owners with a mortgage paid a median $2,251 a year for homeowners insurance in 2024 (Census ACS). Premiums have risen in most states since then, and they vary a lot by home and ZIP code, so get quotes.
- Mortgage rate: each 1-point rise in rates adds roughly $173 a month on this loan.
14 states need at least 20% less income to buy their median home. States with a similar income requirement:
Frequently asked questions
How much do you need to make to buy a house in Texas?
About $95,892 a year for the median home of $313,200 with 20% down at 7.24%. With 10% down it's about $110,073.
What is the property tax rate in Texas?
The median Texas homeowner pays $4,108 a year, about 1.31% of the median home value (Census ACS 2024). Rates vary by county and city.
Is it cheaper to rent or buy in Texas?
Median rent is $1,475 a month, while owning the median home costs about $2,237 a month with 20% down, before maintenance. Renting affordably takes about $59,000 a year under the 30% rule.