Home Affordability in Houston, TX
The median home price in Houston is $310,000 with a median household income of $56,019. Housing is significantly stretched relative to local incomes.
Median Home Price
$310,000
Median Income
$56,019
Price-to-Income Ratio
5.5x
Est. Affordable Home
$218,000
Property Tax Rate
1.80%
Annual Property Tax
$5,580
Sales Tax Rate
8.25%
Cost of Living Index
96
Buying a Home in Houston
Based on the 28% rule (spending no more than 28% of gross income on housing), a household earning the median income of $56,019 in Houston can afford a monthly housing payment of approximately $1,307. This translates to a home price of roughly $218,000, which is below the median home price of $310,000 — many households may need a higher income, larger down payment, or should consider more affordable neighborhoods.
Property taxes on a median-priced home in Houston would be approximately $5,580 per year ($465/month) at the effective rate of 1.80%.
Down Payment Scenarios
| Down Payment | Amount | Loan Amount | PMI Required |
|---|---|---|---|
| 3% | $9,300 | $300,700 | Yes |
| 5% | $15,500 | $294,500 | Yes |
| 10% | $31,000 | $279,000 | Yes |
| 20% | $62,000 | $248,000 | No |
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