Home Affordability for Texas (2026)
Texas (TX) Key Facts
Median Home Price
$300,000
Median Household Income
$67,000
Affordability Index
447
Price to Income Ratio
4.5
Max Affordable Payment (28% Rule)
$1,563
How This Calculator Works in Texas
This home affordability calculator estimates how much house you can afford in Texas based on your income, debts, down payment, and current interest rates. It accounts for Texas's property tax rate and insurance costs to give you a realistic maximum home price. Enter your financial details to see whether the median-priced home in Texas is within your reach.
Texas Overview
Texas has a median home price of approximately $300,000 and a median household income of $67,000, yielding a price-to-income ratio of 4.5. Because Texas has no state income tax, residents keep more of their gross pay, effectively stretching their housing budgets further than in income-tax states. Property taxes average 1.8%, which meaningfully impacts monthly housing costs.
How Texas Compares
Texas's price-to-income ratio of 4.5 is below the national average of roughly 5.5. Nearby Louisiana has a median price of $215,000 and median income of $52,000, yielding a ratio of 4.1. Differences in property taxes and insurance costs between states further shift the true cost of homeownership.
| State | Top Rate | Notes |
|---|---|---|
| Louisiana | $215,000 | Median home price is $215,000 with a median household income of approximately $52,000. The price-to-income ratio is 4.1. |
| Oklahoma | $200,000 | Median home price is $200,000 with a median household income of approximately $55,000. The price-to-income ratio is 3.6. |
| New Mexico | $300,000 | Median home price is $300,000 with a median household income of approximately $54,000. The price-to-income ratio is 5.6. |
With a median home price of $300,000 and a median household income of $67,000, Texas has a price-to-income ratio of 4.5. The national average price-to-income ratio is approximately 5.5. Texas is more affordable than the national average.
Tips for Texas Residents
- 1The median household income in Texas is $67,000. Under the 28% rule, this supports a maximum monthly housing payment of about $1,563, including principal, interest, taxes, and insurance.
- 2Texas's price-to-income ratio of 4.5 means the typical home costs 4.5 times the annual median income. This is moderate compared to the national average of roughly 5.5.
- 3Because Texas has no state income tax, residents keep more of their gross pay, effectively stretching their housing budgets further than in income-tax states.
- 4Property taxes in Texas average 1.8%, which adds $450 per month to your housing cost on the median home. Don't overlook this when calculating affordability.
- 5Look into Texas's first-time homebuyer assistance programs, which may include down payment grants, low-interest second mortgages, or mortgage credit certificates (MCCs) that provide a federal tax credit on mortgage interest.