Texas offers some of America’s most affordable housing combined with strong job markets and no state income tax. From booming Austin to affordable San Antonio, here’s exactly what salary you need to buy a house in the Lone Star State.
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Quick Answer: $100,000 for Median Texas Home
To buy the median Texas home at $340,000 with 20% down and a 6.5% mortgage rate, you need approximately $100,000 in annual household income.
| Scenario | Home Price | Down Payment | Income Needed |
|---|---|---|---|
| State Median | $340,000 | $68,000 (20%) | $100,000 |
| Austin Median | $540,000 | $108,000 (20%) | $155,000 |
| Dallas Median | $400,000 | $80,000 (20%) | $118,000 |
| Houston Median | $340,000 | $68,000 (20%) | $100,000 |
| San Antonio Median | $290,000 | $58,000 (20%) | $85,000 |
| El Paso Median | $250,000 | $50,000 (20%) | $74,000 |
Important: Texas has high property taxes (1.6-2.5% annually) that significantly increase monthly payments compared to lower-tax states. These calculations include property taxes at 2.0%.
Salary Needed by Texas City
Texas housing costs vary significantly by metro. Here’s what you need in each major market:
Major Metro Areas
| City | Median Home Price | Down Payment (20%) | Monthly PITI | Income Needed |
|---|---|---|---|---|
| Austin | $540,000 | $108,000 | $3,622 | $155,000 |
| Dallas | $400,000 | $80,000 | $2,682 | $115,000 |
| Fort Worth | $350,000 | $70,000 | $2,347 | $101,000 |
| Houston | $340,000 | $68,000 | $2,280 | $98,000 |
| San Antonio | $290,000 | $58,000 | $1,944 | $83,000 |
| El Paso | $250,000 | $50,000 | $1,676 | $72,000 |
Dallas-Fort Worth Suburbs
| City/Area | Median Home Price | Monthly PITI | Income Needed |
|---|---|---|---|
| Plano | $525,000 | $3,521 | $151,000 |
| Frisco | $575,000 | $3,856 | $165,000 |
| McKinney | $450,000 | $3,018 | $129,000 |
| Arlington | $320,000 | $2,145 | $92,000 |
| Denton | $375,000 | $2,515 | $108,000 |
| Grand Prairie | $295,000 | $1,978 | $85,000 |
Austin Area
| City/Area | Median Home Price | Monthly PITI | Income Needed |
|---|---|---|---|
| Austin (Central) | $540,000 | $3,622 | $155,000 |
| Round Rock | $450,000 | $3,018 | $129,000 |
| Cedar Park | $485,000 | $3,252 | $140,000 |
| Pflugerville | $410,000 | $2,749 | $118,000 |
| Georgetown | $425,000 | $2,850 | $122,000 |
| Kyle/Buda | $365,000 | $2,448 | $105,000 |
| San Marcos | $325,000 | $2,179 | $93,000 |
Austin insight: Austin experienced massive price growth (2019-2022) but has cooled significantly. Prices are down 10-15% from peaks, making entry more realistic. However, it remains Texas’s most expensive major metro.
Houston Area
| City/Area | Median Home Price | Monthly PITI | Income Needed |
|---|---|---|---|
| Houston (Inner Loop) | $450,000 | $3,018 | $129,000 |
| The Woodlands | $475,000 | $3,186 | $137,000 |
| Sugar Land | $400,000 | $2,682 | $115,000 |
| Katy | $360,000 | $2,414 | $104,000 |
| Pearland | $340,000 | $2,280 | $98,000 |
| Cypress | $375,000 | $2,515 | $108,000 |
| Pasadena | $275,000 | $1,844 | $79,000 |
Affordable Texas Markets
| City | Median Home Price | Monthly PITI | Income Needed |
|---|---|---|---|
| El Paso | $250,000 | $1,676 | $72,000 |
| Corpus Christi | $265,000 | $1,777 | $76,000 |
| Amarillo | $230,000 | $1,543 | $66,000 |
| Lubbock | $245,000 | $1,643 | $70,000 |
| Brownsville | $195,000 | $1,308 | $56,000 |
| Laredo | $215,000 | $1,442 | $62,000 |
| Waco | $275,000 | $1,844 | $79,000 |
| Killeen | $255,000 | $1,710 | $73,000 |
Best value: Killeen (near Fort Hood), Waco, and Lubbock offer Texas affordability with reasonable job markets and amenities.
Can You Afford Texas on Your Salary?
Here’s what different salary levels can actually purchase in Texas:
| Your Household Income | Max Home Price | Where You Can Buy |
|---|---|---|
| $60,000 | $200,000 | Brownsville, Laredo, very rural areas |
| $75,000 | $265,000 | El Paso, Amarillo, Corpus Christi |
| $85,000 | $300,000 | San Antonio, Lubbock, Waco |
| $100,000 | $355,000 | Houston, Fort Worth, mid-tier suburbs |
| $125,000 | $440,000 | Dallas, nice Houston suburbs |
| $150,000 | $530,000 | Austin entry-level, upscale DFW |
| $175,000 | $620,000 | Nice Austin areas, premium suburbs |
| $200,000 | $710,000 | Austin desirable neighborhoods |
The Texas advantage: A family earning $100,000 can buy a quality 3-4 bedroom home in Houston, San Antonio, or Fort Worth suburbs. That same income barely covers rent in coastal California metros.
The Texas Property Tax Reality
Texas has no state income tax — but property taxes are among the nation’s highest. This significantly impacts affordability:
Property Tax Rates by County
| County | Effective Rate | Tax on $350K Home | Monthly |
|---|---|---|---|
| Harris (Houston) | 2.03% | $7,105 | $592 |
| Dallas | 1.93% | $6,755 | $563 |
| Bexar (San Antonio) | 2.12% | $7,420 | $618 |
| Travis (Austin) | 1.82% | $6,370 | $531 |
| Tarrant (Fort Worth) | 2.26% | $7,910 | $659 |
| Collin (Plano/Frisco) | 1.89% | $6,615 | $551 |
Texas vs. California Property Tax Comparison
| Home Value | Texas Tax (2.0%) | California Tax (1.1%) | Texas Premium |
|---|---|---|---|
| $350,000 | $7,000/year | $3,850/year | +$3,150 |
| $500,000 | $10,000/year | $5,500/year | +$4,500 |
| $750,000 | $15,000/year | $8,250/year | +$6,750 |
The trade-off: Texas property taxes are roughly double California’s rate, but California has 9-13% state income tax. For most middle-class households, Texas still comes out ahead — but high property taxes mean monthly housing costs are higher than the purchase price alone suggests.
Homestead Exemption
Texas offers a homestead exemption that reduces your taxable value:
- $100,000 off for school district taxes (as of 2024)
- $25,000 off for other entities (county, city)
- 65+ senior freeze on school taxes
On a $350,000 home, the homestead exemption saves roughly $1,500-$2,000/year.
Down Payment Requirements
| Home Price | 3.5% FHA | 5% Conv. | 10% Conv. | 20% Conv. |
|---|---|---|---|---|
| $250,000 | $8,750 | $12,500 | $25,000 | $50,000 |
| $350,000 | $12,250 | $17,500 | $35,000 | $70,000 |
| $450,000 | $15,750 | $22,500 | $45,000 | $90,000 |
| $550,000 | $19,250 | $27,500 | $55,000 | $110,000 |
Saving for a Down Payment in Texas
Assuming 15% savings rate on take-home pay:
| Income | Monthly Savings | Years to Save $50K | Years to Save $70K |
|---|---|---|---|
| $75,000 | $703 | 5.9 years | 8.3 years |
| $100,000 | $938 | 4.4 years | 6.2 years |
| $125,000 | $1,172 | 3.6 years | 5.0 years |
| $150,000 | $1,406 | 3.0 years | 4.1 years |
Texas rents are moderate ($1,400-$2,000 for a decent apartment), making it easier to save for a down payment compared to coastal states.
Texas Housing Market Dynamics
What Makes Texas Attractive
- No state income tax — Saves 5-13% vs. California, New York
- Job growth — Tech (Austin), energy (Houston), finance (Dallas) all strong
- Below-median prices — $340K median vs. $420K nationally
- Space — Larger lots and newer construction than coastal metros
- Business-friendly — Companies relocating = more jobs
Texas Housing Risks
- Property taxes — Can increase significantly with reassessments
- Insurance costs — Rising due to storms, hail, and flooding
- HOA fees — Common in master-planned communities ($50-$300/month)
- Heat — Summers are brutal; AC costs are real
- Limited appreciation — Texas doesn’t appreciate like coastal markets
Recent Market Trends
| Metric | Austin | Dallas | Houston | San Antonio |
|---|---|---|---|---|
| 2023-2024 Price Change | -3% | +2% | +1% | +2% |
| 2019-2024 Price Change | +45% | +38% | +35% | +40% |
| Months of Inventory | 4.5 | 3.2 | 3.5 | 3.8 |
| Days on Market | 55 | 38 | 42 | 48 |
Austin’s market has cooled significantly from its 2021-2022 frenzy, creating opportunities for buyers.
Texas vs. Other Affordable States
How does Texas compare to other popular relocation destinations?
| Factor | Texas | Florida | Arizona | North Carolina |
|---|---|---|---|---|
| Median Home Price | $340,000 | $405,000 | $425,000 | $335,000 |
| Property Tax Rate | 1.8-2.5% | 0.8-1.0% | 0.6-0.8% | 0.8-1.0% |
| State Income Tax | 0% | 0% | 2.5% flat | 4.75% |
| Homeowner Insurance | $2,500-4,000 | $3,000-8,000 | $1,200-2,000 | $1,500-2,500 |
| Job Market | Strong | Strong | Good | Growing |
The verdict: Texas offers the best job market and no income tax, but Florida has lower property taxes (though higher insurance). North Carolina offers a balanced package with moderate costs all around.
See also: Salary to Buy House in Florida | Salary to Buy House in Arizona
Who Texas Housing Works For
Ideal Candidates
- California/NY refugees — Your $150K salary goes much further here
- Remote workers — Keep your coastal salary, pay Texas prices
- Growing families — More space per dollar than anywhere coastal
- Energy sector — Houston is the capital
- Tech workers — Austin’s scene is mature and growing
Think Twice If…
- You need walkability — Texas cities are car-dependent
- You hate heat — Summers are 95-105°F for months
- You want appreciation — Texas homes grow slower than coastal
- You’re near retirement — Property taxes eat into fixed income
- You value public transit — It’s minimal outside downtowns
Bottom Line: What Salary Do You Need?
| To Buy In… | You Need… |
|---|---|
| Austin | $150,000-$175,000 household income |
| Dallas/Plano/Frisco | $115,000-$165,000 household income |
| Houston | $95,000-$140,000 household income |
| Fort Worth | $95,000-$120,000 household income |
| San Antonio | $80,000-$100,000 household income |
| El Paso/Corpus Christi | $65,000-$80,000 household income |
The Texas opportunity: Unlike California where you need $200K+ for a median home, Texas opens homeownership to middle-class families. A teacher and firefighter household ($120K combined) can buy comfortably in Houston, San Antonio, or DFW suburbs. That same couple would struggle to rent in Los Angeles.
Texas isn’t the cheapest state, but it combines affordability with strong job markets — a rare combination in 2026.