Texas variant. This is a Texas-specific version of the Home Affordability Calculator, using pre-defined local figures (tax rates, median home and income values, and typical regional costs). For the full formula, methodology, and FAQ, open the main Home Affordability Calculator.
How much house you can afford in Texas hinges on the $75,780 median income, 1.68% property tax, and current rates. The 28/36 rule turns income into a realistic price ceiling.
Affordability math for Texas
Lenders typically cap housing costs at 28% of gross income. On Texas's $75,780 median income, that's about $1,768/month for principal, interest, taxes, and insurance.
After reserving for 1.68% property tax and insurance, the remaining payment supports a home priced near $349,685 with 20% down - compared with the $305,000 state median.
About taxes and housing in Texas
Texas has a constitutional ban on a state personal income tax, relying instead on sales and property taxes.
Texas offsets the lack of an income tax with relatively high property taxes near 1.68%, while median home values are around $305,000.
Texas has one of the largest state economies in the nation, led by energy, technology, manufacturing, and trade.
Worked example: max price on $75,780
28% of $75,780 ÷ 12 ≈ $1,768/month. At 6.5% for 30 years with 20% down, that supports roughly $349,685 in home price before taxes and insurance reduce it further.
Quick reference
- State income tax: No state income tax (constitutional ban)
- State sales tax: 6.25% (plus 1.95% avg local)
- Median home value: $305,000
- Median household income: $75,780
- Effective property tax rate: 1.68%
- Avg auto insurance: $2,018/yr
Frequently Asked Questions
How much house can I afford in Texas?
On the $75,780 median income, the 28% rule supports roughly $349,685 in home price at current sample rates - adjust for your real income and debts above.
What is the 28/36 rule?
Spend no more than 28% of gross income on housing and 36% on total debt. It's the standard lender affordability guideline.