How Much House Can I Afford in Texas? (2026 Guide)

Texas attracts buyers with strong job growth and no state income tax, but property taxes and homeowners insurance are a bigger slice of the monthly payment than in many states. With a median home near $350,000 and an effective tax rate around 1.6%, budgeting correctly matters.

The 28/36 rule for Texas buyers

Lenders size your loan using gross income and existing debt. Keep housing near 28% of income and total debt near 36%. Texas's higher tax load means you may qualify for a larger loan amount than you comfortably afford once taxes and insurance are included — always stress-test the full PITI payment.

Why Texas taxes change the math

Texas property taxes are among the highest in the country as a share of home value. On a $350,000 home at 1.6%, taxes alone add about $467/month. Wind and hail risk also push insurance premiums — budget roughly $200/month for insurance on a typical home.

Sample payment on a median Texas home

With 20% down, a 6.75% rate, and a 30-year term on a $350,000 purchase, principal and interest run about $1816/month. Taxes and insurance bring the total near $2483/month — a reminder that Texas "affordability" is about the full payment, not the loan alone.

Tips for Texas homebuyers in 2026

• Homestead exemptions can lower your property tax bill — file after you close.
• Compare insurance quotes; Texas premiums vary widely by county and roof type.
• Look at total monthly cost, not just the price per square foot.
• Consider energy costs — older homes in hot climates can add $200+ in summer AC.

Model your payment with local defaults in the Texas mortgage calculator, or start from income in the affordability calculator.