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Home Affordability Calculator Houston, TX — 2026
Median home price in Houston: $290,000. At 6.5% on a 30-year loan with 20% down, the estimated total monthly payment (PITI) is $2,080 — requiring $89,143/year in gross income. Enter your income below for a personalised estimate.
Reviewed for accuracy June 2026 by Gary Sing
Median home price
$290,000
Income needed (annual)
$89,143
Est. monthly PITI
$2,080
Property tax/month
$505
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How much house can you afford in Houston at your salary?
Maximum home price at each income level: 6.5% rate, 30-year term, 20% down payment, no existing debt. Property tax (2.09%) and insurance (0.45%) included in the 28% front-end DTI budget.
| Annual income | Max home price | Max monthly budget | Affords Houston median? |
|---|---|---|---|
| $50,000 | $162,636 | $1,167/mo | ✗ No |
| $75,000 | $243,955 | $1,750/mo | ✗ No |
| $100,000 | $325,273 | $2,333/mo | ✓ Yes |
| $125,000 | $406,591 | $2,917/mo | ✓ Yes |
| $150,000 | $487,909 | $3,500/mo | ✓ Yes |
| $175,000 | $569,227 | $4,083/mo | ✓ Yes |
| $200,000 | $650,546 | $4,667/mo | ✓ Yes |
Assumes 20% down, 6.5% rate, 30-year term, zero existing monthly debt. Property tax at 2.09% effective rate; insurance estimated at 0.45% annually. PMI required below 20% down — not included here.
Monthly payment breakdown on the median Houston home
$290,000 purchase price with 20% down ($58,000) at 6.5% on a 30-year loan.
Principal & interest (30yr)
$1,466/month on a $232,000 loan at 6.5% over 30 years. Total interest paid over the life of the loan: $295,760.
Property tax (2.09% effective rate)
$505/month ($6,060/year). Houston's 2.09% effective property tax rate is the primary financial trade-off for Texas's no-income-tax environment. On a $290,000 home, property taxes add approximately $506/month — making total carrying costs substantially higher than the purchase price suggests. Flood insurance in some areas adds further.
Homeowners insurance (est.)
$109/month estimated at 0.45% of home value annually. Rates vary significantly by coverage level, age of home, and local risk factors — always get quotes before closing.
Total PITI (monthly)
$2,080/month estimated. Income needed to keep this under 28% of gross monthly income: $89,143/year. Texas has no state income tax — a meaningful take-home pay advantage.
Houston housing market 2026
Houston is the fourth-largest US city and one of the most affordable major metros for its population size, with no state income tax as a key financial advantage. Flooding risk varies significantly by zip code — FEMA flood zone status and flood insurance costs must be evaluated for any specific property before purchase. Energy sector employment creates some income volatility; healthcare, logistics, and the Texas Medical Center provide diversification.
Key numbers for Houston buyers
- Median home price: $290,000 (2026 estimate)
- 20% down payment: $58,000
- Loan amount (80% LTV): $232,000
- Monthly P&I at 6.5% / 30yr: $1,466
- Monthly P&I at 6.5% / 15yr: $2,021
- Est. PITI (P&I + tax + insurance): $2,080/month
- Income needed (28% front-end DTI): $89,143/year
- State income tax: None — meaningful take-home pay advantage
Compare home affordability by city
📍 Los Angeles, CA
Median $900,000 · income needed $244,543/yr · 1.09% tax
📍 Chicago, IL
Median $330,000 · income needed $101,614/yr · 2.1% tax
📍 Phoenix, AZ
Median $400,000 · income needed $102,429/yr · 0.65% tax
📍 Miami, FL
Median $580,000 · income needed $155,143/yr · 0.97% tax
📍 Seattle, WA
Median $740,000 · income needed $195,257/yr · 0.87% tax
📍 Denver, CO
Median $560,000 · income needed $141,171/yr · 0.54% tax
📍 Austin, TX
Median $525,000 · income needed $161,614/yr · 2.1% tax
📍 Atlanta, GA
Median $385,000 · income needed $103,071/yr · 0.98% tax
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Home affordability Houston — frequently asked questions
How much house can I afford in Houston?
On a $100,000 annual income with no other debt, 20% down, and a 6.5% 30-year mortgage, you can afford approximately $325,273 in Houston. The median home price in Houston is $290,000, which requires approximately $89,143/year in gross income using the 28% front-end DTI rule (principal, interest, property tax, and insurance all within 28% of gross monthly income).
What income do I need to buy a home in Houston?
To afford Houston's median home price of $290,000 at 6.5% on a 30-year loan with 20% down, you need approximately $89,143/year in gross income. This assumes the full PITI payment of $2,080/month (P&I $1,466 + property tax $505 + insurance $109) stays within 28% of gross monthly income. Existing debts reduce this buying power further.
What is the median home price in Houston in 2026?
The estimated median home price in Houston in 2026 is approximately $290,000. This varies significantly by neighbourhood — enter the specific purchase price you are evaluating in the calculator above for a personalised estimate.
What are property taxes in Houston?
Houston, TX's effective property tax rate is approximately 2.09%. On a $290,000 home, that is roughly $505/month or $6,060/year in property taxes. Houston's 2.09% effective property tax rate is the primary financial trade-off for Texas's no-income-tax environment. On a $290,000 home, property taxes add approximately $506/month — making total carrying costs substantially higher than the purchase price suggests. Flood insurance in some areas adds further.
Is Houston affordable to buy in 2026?
Houston's median home price of $290,000 requires an annual gross income of approximately $89,143 to qualify under the 28% front-end DTI rule at 6.5% with 20% down. The estimated total monthly payment (PITI) is $2,080/month. Houston is the fourth-largest US city and one of the most affordable major metros for its population size, with no state income tax as a key financial advantage.