Salary to Buy a Home
What Salary Do You Need to Buy a Home in Texas? (2026)
To buy the median Texas home ($305,000) with 20% down at today's 7.03% rate, you need an annual income of $104,014 — $36,693 more than the typical household earns ($67,321). Your monthly PITI payment (principal, interest, taxes, and insurance combined) would be $2,427. With only 10% down, lenders require PMI (private mortgage insurance, since you have less equity) — pushing the income you need to $117,257/year and the payment to $2,736/month.
How big is the gap?
Buying the median Texas home takes $104,014/year, but the typical household earns $67,321 — a gap of $36,693.
New to this? Quick definitions
- PITI —
- principal, interest, taxes, and insurance — the four pieces of your monthly mortgage payment, all added together.
- DTI (debt-to-income ratio) —
- what percent of your monthly income goes toward debt payments. Lenders use this to decide how much they'll let you borrow.
- Front-end vs. back-end DTI —
- front-end counts only your housing payment (PITI); back-end counts housing plus every other debt — car loans, student loans, credit cards.
- 28/36 rule —
- a lending guideline: housing costs shouldn't exceed 28% of your gross monthly income (front-end), and total debt payments shouldn't exceed 36% (back-end).
- Gross vs. net income —
- gross is your pay before taxes and deductions — the number lenders use. Net is what actually lands in your bank account, which is what you'll live on.
- PMI —
- private mortgage insurance, required when you put down less than 20%. It protects the lender, not you, and adds to your monthly payment until you build enough equity.
Income Required to Buy a Median Texas Home
At 7.03% (30-year fixed, Freddie Mac PMMS, week of September 24, 2026) using the 28% front-end DTI rule — your housing payment capped at 28% of gross monthly income
20% Down — $61,000 down
$104,014
annual income required
10% Down — $30,500 down
$117,257
annual income required
Monthly Payment Breakdown — $305,000 Median Home
PITI = Principal + Interest + Taxes + Insurance. PMI added for 10%-down scenario.
| Component | 20% Down | 10% Down |
|---|---|---|
| Principal & Interest (20% down) | $1,627 | $1,831 |
| Property Tax (1.80%) | $458 | $458 |
| Homeowners Insurance | $342 | $342 |
| PMI (10% down only) | — | $105 |
| Total Monthly PITI | $2,427 | $2,736 |
| Annual income required (28% DTI) | $104,014 | $117,257 |
Rate: 7.03% 30-year fixed (Freddie Mac PMMS, week of September 24, 2026). Property tax: 1.80% effective rate.Insurance: $4,100/yr (statewide average). PMI: 0.46% of the loan a year (720–739 credit, 90% loan-to-value, National MI rate card).
Where your money goes each month
Mistakes first-time buyers make
- Budgeting off gross income instead of what actually hits your bank account after taxes and deductions.
- Ignoring existing debt payments — car loans, student loans, credit cards — that count against your back-end DTI and shrink what you can borrow.
- Assuming a lender's maximum approval is what you should actually spend, rather than what you're comfortable paying every month.
- Forgetting that 10%-down loans carry PMI, which raises the monthly payment and the income you need to qualify.
Pro tips
- Treat the 28/36 rule as a ceiling, not a target — qualifying for a payment doesn't mean you should stretch to it.
- Pay down other debt before applying for a mortgage; lowering your DTI can qualify you for more house at the same income.
- Get pre-qualified early so you know your real number before you start house-hunting, not after you've fallen for a listing.
- Compare 20%-down and 10%-down scenarios side by side — the income required and monthly payment both shift with PMI.
Texas Affordability Gap
How far the median household income is from what's needed to buy the median home
Affordability gap
+$36,693
shortfall vs. income required
Gap %
+54.5%
Median households need 54.5% more income to clear the 28% DTI threshold
Price that fits the median income
$179,739
The most expensive home a typical Texas household can buy and stay within the 28% PITI rule — at $67,321/year income, 20% down, 7.03% rate. That's $125,261 below Texas's median home price.
Most & Least Affordable Counties in Texas
Home prices vary significantly by county — these counties anchor the affordability spectrum
Most affordable counties
- 1Zavala County
- 2Presidio County
- 3Hudspeth County
Least affordable counties
- 1Travis County
- 2Collin County
- 3Fort Bend County
County affordability reflects relative home price levels. Use the mortgage calculator for an exact income analysis at your target county price point.
Mortgage Calculator — Texas
Pre-loaded with Texas's $305,000 median home price at 7.03%
Mortgage Estimator
Texas rates pre-loaded
Monthly Payment
$2,082
estimated all-in payment (PITI)
Tax and insurance estimates use national averages. For Texas-specific numbers, see the full breakdown below.
Excludes HOA fees. Rates and costs are estimates; actual costs vary.
Full Calculator →How Much Home Can You Afford in Texas?
The income required figures above are for the median home. Enter your actual income to see what home price you qualify for.
Mortgage Affordability Calculator
Enter your income, debts, and down payment to find your maximum home price — pre-loaded for Texas
Open Calculator →The Texas Tax and Insurance Rules Inside That Payment
How Texas arrives at the property tax bill
100% of market value as of January 1 (Tax Code § 23.01(a)); Texas does not apply a fractional assessment ratio (Texas Legislative Council, retrieved 2026-09-14) Residence homestead appraised value may not increase more than 10% over the preceding year's appraised value, plus the market value of new improvements (Tax Code § 23.23(a)) (Texas Legislative Council, retrieved 2026-09-14)
School districts must exempt $140,000 of a residence homestead's appraised value (Tax Code § 11.13(b)). Homeowners who are 65 or older or disabled get an additional $60,000 school exemption (§ 11.13(c)). Any taxing unit may adopt a local-option exemption of up to 20% of appraised value (minimum $5,000), and counties collecting farm-to-market or flood control taxes must give $3,000. When to file: Generally no later than April 30 (before May 1); a late application may be filed up to two years after the filing deadline. (Texas Comptroller of Public Accounts, retrieved 2026-09-14)
If the assessed value looks wrong, the appeal window is Not later than May 15 or the 30th day after the notice of appraised value was delivered to the property owner, whichever is later (Tax Code § 41.44(a)(1)), heard first by the County appraisal review board (ARB). (Texas Legislative Council, retrieved 2026-09-14)
Texas Windstorm Insurance Association (TWIA); Texas FAIR Plan Association (TFPA)
TWIA: windstorm and hail coverage for property in the Commissioner-designated area, currently all 14 first-tier coastal counties (Aransas, Brazoria, Calhoun, Cameron, Chambers, Galveston, Jefferson, Kenedy, Kleberg, Matagorda, Nueces, Refugio, San Patricio, Willacy) and parts of Harris County east of Highway 146. Applicants must have been denied by at least one authorized insurer, and properties must be certified by TDI. TFPA: essential property insurance for owners denied elsewhere; applicants need two declinations from other insurers. (Texas Windstorm Insurance Association, retrieved 2026-09-14)
Frequently Asked Questions
- What salary do you need to buy a house in Texas?
- To buy Texas's median-priced home ($305,000) with 20% down at 7.03% (30-year fixed), you need $104,014/year. That keeps your monthly PITI (principal, interest, taxes, insurance) of $2,427 within the 28% front-end DTI guideline — lender-speak for keeping your housing payment at or under 28% of your gross monthly income. With 10% down and PMI, the required income rises to $117,257/year with a $2,736/month payment. Source: Zillow Home Value Index, May 2026 (home price), Freddie Mac PMMS, week of September 24, 2026 (rate).
- Can the average Texas household afford a home?
- Not easily. The median Texas household earns $67,321/year, but qualifying for the median home requires $104,014 — an affordability gap of $36,693 (+54.5%). On the median income, the most you can spend and stay within the 28% guideline is $179,739.
- What home price can I afford on Texas's median income?
- At $67,321/year (Texas's median), your maximum monthly housing budget is $1,571 under the 28% DTI rule. Working backwards at 7.03% with 20% down, that supports a home price of $179,739 — $125,261 below the $305,000 median.
- What is the PITI payment on a median Texas home?
- On Texas's median home price of $305,000: with 20% down ($61,000 down), your PITI is $2,427/month. With 10% down ($30,500 down plus PMI), PITI rises to $2,736/month. PITI includes principal & interest at 7.03%, property tax at 1.80%, and homeowners insurance (PMI added for the 10%-down scenario at 0.46% of the loan a year, the National MI rate-card price for 720–739 credit at 90% loan-to-value: $105/month). Source: Freddie Mac PMMS, week of September 24, 2026 / Zillow Home Value Index, May 2026.
- What is the 28% rule for buying a home?
- The 28% rule (HUD front-end DTI standard) says your monthly housing payment — principal, interest, taxes, and insurance (PITI) — should not exceed 28% of your gross monthly income. To qualify for Texas's median home at 20% down, your PITI would be $2,427/month. Divide by 0.28 to get the required monthly income ($8,668), then multiply by 12: $104,014/year. Lenders also check back-end DTI (all debts ≤ 43%), so existing debt reduces what you can borrow.
- Which Texas counties are most and least affordable?
- Texas's most affordable counties for homebuyers include Zavala County, Presidio County, Hudspeth County, where home prices are significantly below the state median. The least affordable are typically Travis County, Collin County, Fort Bend County, where prices far exceed the statewide average. County-level data is updated quarterly — use the mortgage calculator below for your specific target area.
Related Calculators
Mortgage Affordability Calculator
See what home price you can afford on your income in Texas
Mortgage Calculator
Full PITI payment on $305,000 at 7.03%
Property Tax Guide
Texas property tax at 1.80% — how it affects your payment
Home Insurance Costs
Average Texas homeowners insurance: $4,100/year
Mortgage Payments by Price
Full PITI for 8 home prices in Texas, from $200K to $750K
What to do with this number
Now that you know roughly what income Texas's median home requires, here's how to use it.
Income gap feels large?
Check down payment assistance programs in Texas — a smaller down payment can lower the income you need to qualify.
Want the full monthly cost, not just the salary needed?
See the true cost of owning a home in Texas — PITI is only part of what you'll actually pay each month.
Ready to check your real number?
Use the affordability calculator with your actual income and debts instead of the state median.