Income Needed to Buy a Home in Texas (2026)
Verdict: unaffordable — requires $100,396/year (#29 least affordable of 51 US states)
Texas ranks #29 of 51 US states for housing unaffordability in 2026. Buying the median home at $300,957 requires a household income of about $100,396. That's $20,675 more than the median household actually earns ($79,721) — a shortfall of 26% of typical income.
Texas's affordability ratio of 1.26 (required income ÷ actual median income) is 1.4% better than the median across all 51 US states (1.28). Home prices here sit 13.2% below the cross-state median of $346,668.
An effective property tax rate of 1.36% adds $341 per month — and homeowners insurance is a real burden here at $3,899/year ($325/month), well above what most states pay. All-in, the monthly PITI (principal, interest, taxes, insurance) comes to $2,343. Texas has no state income tax, which effectively boosts take-home pay relative to the sticker income requirement.
Texas monthly cost breakdown (2026)
| Median home price | $300,957 |
| Loan amount (10% down) | $270,862 |
| Monthly principal & interest | $1,677 |
| Monthly property tax (1.36% rate) | $341 |
| Monthly homeowners insurance | $325 |
| Total monthly PITI | $2,343 |
| Required household income | $100,396 |
| Median household income | $79,721 |
Run your own numbers
These figures model the median buyer. Your rate, down payment, and debts change the answer — check your personal maximum with the Home Affordability Analyzer or build a full payment schedule in the Advanced Mortgage Calculator. Closing costs typically add 2–5% on top — estimate them with the Closing Costs Estimator.
How Texas compares
- Virginia — similar affordability (ratio 1.26, requires $115,911)
- Louisiana — similar affordability (ratio 1.26, requires $77,091)
- Wisconsin — similar affordability (ratio 1.27, requires $98,221)
- West Virginia — among the most affordable US states (requires $48,369)
- Iowa — among the most affordable US states (requires $74,199)
See every state and province ranked in the 2026 Mortgage Affordability Index.
Frequently asked questions
How much income do you need to buy a house in Texas in 2026?
About $100,396 per year to afford the median-priced home of $300,957, assuming a 10% down payment and standard 28% housing-cost-to-income guideline. The median Texas household earns $79,721.
What is the monthly cost of owning a median home in Texas?
Roughly $2,343 per month, including principal and interest, property tax, and homeowners insurance.
Is Texas affordable at the median income?
No. The required income exceeds the median household income by $20,675 (26%), ranking Texas #29 least affordable of 51 US states.
Methodology & sources
Assumes 10% down, 30-year fixed at prevailing 2026 rates, 28% housing-cost-to-income guideline. Home prices from Zillow ZHVI (March 2026); incomes from Census ACS 1-Year 2024; property taxes from Tax Foundation; insurance from Bankrate state averages. Figures model the median scenario and are not financial advice. Full sources on the affordability index.