Home Affordability Calculator in Texas

In Texas, the median home costs $342K and the median household income is $80K/year. Find out how much house you can afford based on your income, debts, and down payment. Formula shown, sources cited — no account required.

At $342,000 median home price against $79,721 median household income, Texas carries a price-to-income ratio of about 4.3x — manageable in absolute terms but tightened by high property taxes. A 10% down payment means putting up $34,200 before closing, plus roughly 1.4% in closing costs, another $4,800. The real affordability challenge in Texas is the 1.80% property tax rate, which adds $513 per month to a median-priced home's total cost — a larger monthly burden than states with higher home prices but lower tax rates. The My First Texas Home program and TSAHC Down Payment Assistance can reduce the cash needed at closing for qualifying buyers. Markets like San Antonio and El Paso remain more accessible than Austin or Dallas, where prices run well above the state median. Property tax bills in Texas reset when a home sells, which can produce payment shock for buyers coming from areas with lower assessed values. Use a home affordability calculator that includes property taxes to get an accurate picture of what you can realistically afford.

$342K

Median Home Price

$80K/yr

Median Income

10%

Avg Down Payment

91.1 / 100

Cost of Living

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How Much House Can You Afford in Texas?

Lenders typically use the 28/36 rule: your monthly housing payment should not exceed 28% of gross monthly income, and total debt payments should stay under 36%. With Texas's median income of $79,721/year ($6,643/month), that means a maximum housing payment of roughly $1,860/month.

At 6.51% over 30 years with a 10% down payment ($34,200), that monthly budget supports a purchase price of approximately $324,900–$342,000. The median home price in Texas is $342,000, which means housing is more affordable than the national average.

Questions You Might Ask — Home Affordability in Texas

How much house can I afford in Texas?

With the median household income of $79,721 in Texas, the 28% housing rule allows a maximum monthly payment of $1,860. At 6.51% over 30 years with 10% down, that supports a purchase price of roughly $328K. The median home in Texas is $342K.

What is the median home price in Texas?

The median home price in Texas is $342,000 (2026). Prices vary significantly by metro — urban areas typically run 20–50% above the state median, while rural areas may be well below. The cost of living index for Texas is 91.1 (100 = national average).

What income do I need to afford the median home in Texas?

To afford the $342K median home in Texas with a 10% down payment ($34,200) and 6.51% rate (30 years), you need a gross annual income of at least $89,721 — following the 28% rule. The state median household income is $79,721.

What debt-to-income ratio do lenders require in Texas?

Lenders in Texas (and nationwide) generally require a total DTI below 43% for conventional loans, with 36% preferred. FHA loans allow up to 50% DTI in some cases. This means your total monthly debt payments — mortgage, car loan, student loans, and credit cards — should not exceed 43% of your gross monthly income ($2,856 on the Texas median income).

How does Texas's cost of living affect home affordability?

Texas has a cost of living index of 91.1 (100 = national average). Texas's cost of living is near the national average, so total housing affordability is similar to most other states.

Data Sources & Methodology

Median home prices from the National Association of Realtors (NAR). Median household income from U.S. Census Bureau ACS. Mortgage rates from Freddie Mac PMMS. Affordability calculations use the 28/36 DTI rule per Fannie Mae guidelines. Last updated 2026.