Texas Homebuyer & Homeowner Resources

What stands out

The one number in Texas's data worth reading first

Property tax is the standout number here: Texas has the #6-highest effective property tax rate in the country, at 1.8%. Whatever else moves in your budget, this line item is bigger than it is in most states.

Home prices by city

How far the Texas median actually stretches

Texas's statewide median of $305,000 moved up 1.2% over the past year, per Zillow Home Value Index, May 2026. That median blends markets that don't resemble each other: Austin runs highest among the state's major cities at $548,000 (Zillow 2026), while San Antonio is lowest at $258,000 (Zillow 2026) — a 112% spread inside one state's own market.

Source: Zillow Home Value Index, May 2026 (www.zillow.com/home-values/44/tx) for the statewide figure; city figures cited individually above.

Compare a specific city's price against the statewide payment with the Mortgage Calculator.

Property tax, county by county

How Texas actually taxes your home

Property tax in Texas tops out in Fort Bend County, where the effective rate runs 2.23%, and bottoms out in Kenedy County at 0.75% — a 1.48-point spread inside one state. The statewide effective rate is 1.8% ($5,490/year on the median-priced home), which ranks Texas #6 of 51 nationally. On a $300,000 home, the gap between Fort Bend County and Kenedy County alone is worth roughly $4,440/year, before either county's exemptions are applied.

Assessments reset annually here: Annual.

Texas offers a homestead exemption for owner-occupied primary residences: General homestead exemption of $100,000 from school district taxes (as of 2023 law). File through the state/county assessor's office — homestead exemptions are almost never applied automatically at closing.

Sources: Tax Foundation State Data 2024 (taxfoundation.org/data/all/state/property-taxes-by-state-county) for the effective rate and county figures; comptroller.texas.gov/taxes/property-tax/exemptions/ for exemption rules.

Estimate your own bill with the Property Tax Calculator, or see how it folds into your full payment with the Mortgage Calculator.

Closing costs, itemized

What you'll actually pay at the table in Texas

Texas's own standing here: Below average — no transfer tax. In dollar terms that's about 1.9% of the purchase price — roughly $5,795 on the state's median home.

Texas charges no state transfer tax on real estate sales — one line item most other states' buyers or sellers pay that doesn't apply here. Confirm the current rate with the state tax authority before closing — local add-on transfer taxes are common and this figure may not include them.

Texas does not require an attorney at closing — a title company or escrow agent can handle the transaction, though buyers are still free to hire an attorney for review at their own cost. Title insurance runs about $1,800 on the state's median home price, scaling with purchase price.

The 1.9% figure above covers lender fees, title work, recording, and the transfer tax detailed below — it does not include prepaid items collected at closing (the first months of property tax and insurance funding your escrow account, plus a per-diem of interest to the first payment date). Those prepaids appear as a separate line on the closing disclosure and scale with your specific loan amount and closing date, not with this state-level average.

Sources: ClosingCorp 2021 / Urban Institute 2025 (www.urban.org/urban-wire/why-do-closing-costs-differ-between-states) for the overall estimate; comptroller.texas.gov/taxes/property-tax/ for the current transfer tax rate.

Get a full line-item breakdown for your own purchase price with the Closing Costs Calculator.

The income math

Salary it actually takes to buy in Texas

The income math below uses the same median home price as the rest of this page — $305,000, per Zillow Home Value Index, May 2026. A buyer putting 20% down on that home needs about $100,500/year in household income to qualify at standard debt-to-income limits (monthly PITI of $2,345). Stretching to a 10% down payment raises the bar to $117,086/year ($2,732/month PITI) — a smaller down payment does not make the home more affordable on a monthly basis; it usually makes it less affordable, once PMI is added.

Texas's median household income is $67,321/year. That leaves a gap of $33,179/year (49.3% short) between what the typical household earns and what the 20%-down math requires. That's a severe gap — the median household in Texas isn't close to affording the median-priced home at standard lending guidelines, and something has to give: a bigger down payment, a lower price point, or a market outside the state median.

The gap between the two down-payment scenarios is instructive: dropping from 20% to 10% down raises the required income by $16,586/year — a smaller upfront check does not translate into an easier qualification in Texas, because the extra loan balance plus PMI outweighs the cash saved at closing. (Derived: 10%-down required income minus 20%-down required income, both from the Home price: Zillow Home Value Index (same figure as this page's median home price, see housing block); household income: Census ACS 2024; PITI assumptions: 6.52% 30-yr fixed (Freddie Mac, June 2026), state effective property tax rate, state avg. homeowners insurance premium, 0.85% PMI (680-719 credit band) figures above.)

Put another way: at Texas's actual median household income, the home price that fits standard underwriting is $187,170 — 39% below the actual median home price.

Where affordability differs most inside Texas

Source: Home price: Zillow Home Value Index (same figure as this page's median home price, see housing block); household income: Census ACS 2024; PITI assumptions: 6.52% 30-yr fixed (Freddie Mac, June 2026), state effective property tax rate, state avg. homeowners insurance premium, 0.85% PMI (680-719 credit band), June 2026.

Check whether your own income clears the bar with the Mortgage Affordability Calculator and see your qualifying ratio with the DTI Calculator.

Down payment assistance

What Texas actually offers buyers

Texas's primary down payment assistance program is the My First Texas Home down payment assistance, administered by Texas Department of Housing and Community Affairs (TDHCA). It is structured as a deferred loan — no payments while you own and occupy the home; the balance comes due on sale, refinance, or payoff of the first mortgage. Maximum assistance is capped at $0. The purchase price cannot exceed $566,354.

The primary program above covers about 0% of Texas's median home price — meaningful help with cash-to-close, but nowhere near enough to skip saving for the rest of the down payment. (Derived: primary program's max assistance ÷ Texas's median home price, both cited above.) Apply directly through the agency — welcomehome.tdhca.texas.gov/programs — rather than through a third party; funding availability changes without notice, so the agency's own page is the only reliable source for whether it's currently open.

Other Texas programs worth stacking

• TSAHC 3-year Deferred Forgivable Second Lien — a forgivable loan — the balance is forgiven over time as long as you stay in the home, up to $0.

Source: TDHCA Lender Guide and TSAHC Program Guidelines (retrieved 2026-09-14), September 2026. Program terms change with agency funding cycles — confirm current limits on the agency page before budgeting around a specific dollar figure.

Run the numbers with this assistance folded in using the Down Payment Savings Calculator and check how it moves your required income with the Mortgage Affordability Calculator.

Insurance & climate exposure

What actually drives your premium in Texas

The climate risks behind Texas's homeowners insurance rate: hurricanes (Gulf Coast); hailstorms; tornadoes; flooding.

The average $300,000 dwelling homeowners premium in Texas is $4,582/year, per Insurance.com — Average homeowners insurance rates by state (Rate Analysis 2026) · $300,000 dwelling. This is the same figure used at the top of this page and in the insurance summary card above — one number, one basis, used consistently everywhere on this page.

Separately, this state's insurer-reported data (not the figure above) ranks Texas #6 nationally for homeowners insurance cost and shows premiums moving roughly 6% over the past year. Carriers here underwrite primarily against Hurricane and tropical wind, Tornadoes, Hail storms, Coastal flooding.

Where in Texas you pay more — or less

These county figures come from the same insurer-reported series as the rank above, not from Insurance.com — Average homeowners insurance rates by state (Rate Analysis 2026) · $300,000 dwelling — they show relative spread within the state, and shouldn't be averaged against the statewide premium quoted above.

Premium source: Insurance.com — Average homeowners insurance rates by state (Rate Analysis 2026) · $300,000 dwelling. Rank, YoY change, risk factors, and county breakdown source: Insurance.com 2026; NAIC Homeowners Insurance Report 2024, January 2026 — a separate series from the premium figure above.

Model insurance into your full monthly cost with the Home Insurance Cost Calculator and see the whole picture, taxes included, with the Mortgage Calculator.

Flood risk & flood insurance

Flood exposure in Texas

FEMA classifies statewide flood risk in Texas as high — well above the national average for flood exposure. There are currently 620,000 active NFIP policies in the state, but only about 5.8% of homes carry flood coverage of any kind — a coverage gap that shows up after every major flood event, not before.

The average NFIP premium in Texas runs $756/year. Private flood insurance is also available here and can undercut NFIP pricing for lower-risk properties, so it's worth quoting both.

Highest-risk areas: Houston metro (Harris County — highest NFIP claim count in U.S. history); Gulf Coast (Galveston, Brazoria, Jefferson counties); San Antonio flash flood corridor (Bexar County); Austin Hill Country (flash flood capital of the U.S.); Rio Grande Valley (Cameron, Hidalgo counties). Lenders require flood insurance as a mortgage condition in FEMA zones Zone A, Zone AE, Zone AO, Zone V, Zone VE — coverage isn't optional if the property sits in one of these.

Texas has no state-run flood insurance backstop — NFIP and the private market are the only coverage options here.

Recent loss history: Hurricane Harvey (2017) dropped 60 inches of rain on Houston — the most rainfall from any U.S. tropical storm on record — causing $125B in damage. Harris County has filed more NFIP claims than any county in U.S. history. The 2025 Texas Hill Country floods killed dozens and caused significant uninsured losses.

Source: FEMA NFIP State Profiles 2025 / ValuePenguin NFIP Study 2024, June 2026.

Price a policy for your specific coverage level with the Flood Insurance Cost Calculator, and check whether a property's tax history hints at a flood-prone parcel with the Property Tax Calculator.

HOA fees

How common HOAs are in Texas

About 42% of Texas homes report an HOA, per the Census Bureau's American Housing Survey — averaging $290/month. Texas doesn't have the kind of dense HOA/condo market this dataset tracks in detail state law for, so treat that figure as a rough statewide average rather than a market you need to research county by county; a specific listing's HOA disclosure will always be the more reliable number.

Source: Census American Housing Survey 2023 (www.census.gov/programs-surveys/ahs.html).

Build the fee into your monthly budget with the Mortgage Calculator, and check how it affects loan qualification with the DTI Calculator.

Maintenance & utilities

Upkeep costs specific to Texas's climate

Standard guidance budgets 1.5% of home value per year for maintenance — about $4,575/year ($381/month) on Texas's median-priced home. What actually drives that number here: extreme summer heat stresses HVAC systems; hailstorms accelerate roof wear.

Two assets carry most of that reserve: an HVAC system, which runs 10-15 years (heat pumps in extreme heat), and a roof, which runs 15-20 years (hail exposure shortens lifespan). Budget the shorter of the two into your reserve first, rather than treating the monthly maintenance figure as the only cost.

Utilities add another $188/month on average — $147 electric and $41 gas — on top of the mortgage, tax, insurance, and maintenance figures above.

Sources: Fannie Mae 1-2% guideline; Bankrate Hidden Costs Study 2025 for maintenance; U.S. Energy Information Administration (www.eia.gov/consumption/residential) for utilities.

Price a specific repair or replacement with the Home Renovation Cost Calculator or the New Roof Installation Cost Calculator.

Rent vs. buy, by city

Where buying beats renting in Texas

Statewide, Texas's price-to-rent ratio is 17.5 against a median monthly rent of $1,450, putting the modeled break-even — where cumulative ownership costs cross what renting would have cost — around 5.8 years. Moderate — favors buying for stays of 5+ years in most markets.

The statewide ratio hides real variation between Texas's own metro markets:

San Antonio has the lowest ratio in the state at 13.9 — the strongest buy case of Texas's major metros — while Austin runs highest at 26.4, where renting keeps more cash flexible for a longer stretch.

Source: Census ACS 2023 / Baselane Research 2025. A price-to-rent ratio under roughly 15 generally favors buying; above roughly 21, renting; the range between is a close call that depends on how long you plan to stay.

Run your own break-even year with the Rent vs. Buy Calculator.

Loan limits & the full monthly breakdown

What the mortgage math looks like in Texas

The 2026 conforming loan limit in Texas is $726,200 statewide, with no high-cost-area exception. Borrow above that and you're in jumbo-loan territory, with different underwriting and typically a higher rate. The 30-year rate used in these estimates is 6.4%, per Freddie Mac PMMS, May 2026 (www.freddiemac.com/pmms) — check the live rate before locking, since Freddie Mac publishes a fresh figure every week.

Where the Texas median-home payment actually goes

On the $305,000 median home with 20% down ( $244,000 loan), principal and interest is $1,538/month — but that's only 53% of the true monthly cost. Property tax adds $458, insurance $345, maintenance $381, and utilities $188 — bringing the true monthly cost to $2,910. True monthly cost is 89% higher than mortgage alone..

First-time buyer mortgage programs in Texas

• My First Texas Home (Texas State Affordable Housing Corporation) — Below-market rate first mortgage. Up to $726,200, minimum 3% down. Income limit: Varies by county and family size. Must not have owned in past 3 years Available statewide through approved lenders..
• Texas DPA 5% (Texas State Affordable Housing Corporation) — Down payment assistance grant — no repayment. Up to $18,120. Grant — no repayment required Income limit: 115% of area median income. 5% of loan amount; available with My First Texas Home..

Loan limit source: www.fhfa.gov/. Rate source: Freddie Mac PMMS, May 2026.

Model your own price point with the Mortgage Calculator or check FHA-specific numbers with the FHA Loan Calculator.

Sources

Where every number on this page comes from

This page draws on 13 distinct primary sources for Texas — government tax and housing finance agencies, federal rate and loan-limit publishers, and industry cost surveys — each cited at the point it's used above and listed again here with the period the figure reflects. Construction, insurance, and rate data move; check the linked source directly before making a purchase decision on an older figure.

• Median home price — www.zillow.com/home-values/44/tx (2026-Q2)
• Property tax rates & exemptions — taxfoundation.org/data/all/state/property-taxes-by-state-county (Tax Foundation State Data 2024)
• Homestead exemption rules — comptroller.texas.gov/taxes/property-tax/exemptions (Tax Foundation State Data 2024)
• Homeowners insurance rates — www.insurance.com/home-and-renters-insurance/home-insurance-basics/average-homeowners-insurance-rates-by-state (Insurance.com Rate Analysis 2026)
• Closing cost benchmarks — www.urban.org/urban-wire/why-do-closing-costs-differ-between-states (ClosingCorp 2021 / Urban Institute 2025)
• Transfer tax rules — comptroller.texas.gov/taxes/property-tax (ClosingCorp 2021 / Urban Institute 2025)
• Utility costs — www.eia.gov/consumption/residential (U.S. Energy Information Administration)
• HOA prevalence (Census AHS) — www.census.gov/programs-surveys/ahs.html (Census American Housing Survey 2023)
• 30-year mortgage rate — www.freddiemac.com/pmms (Freddie Mac PMMS, May 2026)
• Conforming loan limit — www.fhfa.gov (FHFA)
• Down payment assistance program — welcomehome.tdhca.texas.gov/programs (September 2026)
• My First Texas Home — www.tsahc.org/homebuyers (2026-Q2)
• Texas DPA 5% — www.tsahc.org/homebuyers/homes-for-texas-heroes (2026-Q2)