# Buying a home in Houston: prices, payments and buyer help

> Houston mortgage numbers: median home value, the 1.4% effective property tax, what a median household can afford, flood risk and city buyer help.

URL: https://mortgage-math-us.com/location/houston-tx/  
Last reviewed: 2026-10-29 · By the MortgageMath US Editorial team

## Quick answer

The median owner-occupied home in the City of Houston is worth $301,200, below the Texas median of $313,200. With 10% down at the 7.24% national average rate, that home costs about **$2,633 a month** including property tax at the city’s effective rate of 1.43%, insurance at the Texas average and PMI. Income-qualified buyers inside city limits can apply for up to **$75,000** through the City’s Homebuyer Assistance Program.

## Key facts

| Fact | Value | Source | As of |
|---|---|---|---|
| Median home value, Houston | $301,200 | [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25077?g=160XX00US4835000) | 2024 ACS 1-year |
| Median household income, Houston | $64,361/yr | [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B19013?g=160XX00US4835000) | 2024 ACS 1-year |
| Effective property tax rate, Houston | 1.43% | [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25103?g=160XX00US4835000) | 2024 ACS 1-year |
| Homes lived in by their owners | 40.9% | [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25003?g=160XX00US4835000) | 2024 ACS 1-year |
| Median owner costs with a mortgage | $2,415/mo | [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25088?g=160XX00US4835000) | 2024 ACS 1-year |
| City of Houston down-payment help, up to | $75,000 | [City of Houston HAP Guidelines, version 8.0](https://houstontx.gov/housing/plans-reports/guidelines/hap/Homebuyer_Assistance_Program_HAP_Guidelines-8.0-Entitlement-071526.pdf) | Jun 23, 2026 |

## Houston housing at a glance

Most Houston households rent: 40.9% of occupied homes in the city are lived in by their owners, against 62.3% in Texas and 65.3% nationally. The median home is below the Texas median, but incomes matter as much as prices: the median home costs 4.7 times the median household income in Houston, higher than the Texas ratio of 3.9.

*City of Houston compared with Texas and the US (Census ACS 2024 1-year)*

| | Houston | Texas | United States |
|---|---:|---:|---:|
| Median home value | $301,200 | $313,200 | $360,600 |
| Median household income | $64,361 | $79,721 | $81,604 |
| Home value ÷ income | 4.7× | 3.9× | 4.4× |
| Effective property tax rate | 1.43% | 1.31% | 0.89% |
| Median gross rent | $1,408/mo | $1,475/mo | $1,487/mo |
| Median owner costs with a mortgage | $2,415/mo | $2,211/mo | $2,035/mo |
| Median year built | 1985 | 1994 | 1981 |

The figures cover the City of Houston only, not the wider metro, where suburbs in Fort Bend, Montgomery and other counties have their own price levels and tax rates.

## What the median Houston home costs each month

> **Worked example: $301,200 home (Houston’s median value), 10% down, 30-year fixed at 7.24%**
>
> | Part of the payment | Monthly |
> |---|---:|
> | Principal and interest on $271,080 | $1,847 |
> | Property tax at 1.43% a year | $359 |
> | Homeowners insurance at the Texas average of $3,489/yr | $291 |
> | PMI (midpoint of Freddie Mac’s range) | $136 |
> | **Total** | **$2,633** |
> 
> The insurance line uses the Texas Department of Insurance’s statewide average; quotes inside Houston vary with flood zone, roof age and wind exposure. Flood insurance, if required, is extra.

Cash to close on the same home is the $30,120 down payment plus closing costs of roughly $6,024–$15,060 at the CFPB’s typical range. Texas charges no real estate transfer tax, and owner’s title insurance premiums are set by the state, so closing costs tend to sit toward the lower end. Run your own numbers in the [mortgage payment calculator](https://mortgage-math-us.com/tools/mortgage-payment-calculator/?price=301000&down=10&tax=1.43&ins=3489), which opens with Houston’s median value, tax rate and the Texas insurance average.

## Can a median Houston household afford the median home?

On the city’s median household income of $64,361, Freddie Mac’s guideline of keeping housing under 30% of gross income gives a budget of $1,609 a month. With 10% down at today’s average rate, Houston’s tax rate and the Texas insurance average, that supports a price of about **$184,000** — $117,200 below the median home value.

That gap is why many Houston buyers stretch toward a lender’s higher debt-to-income limits, buy a smaller or older home, or look for down-payment help. Lowering the price is the strongest lever: every $10,000 less borrowed saves about $68 a month in principal and interest, plus about $12 in property tax at the city’s rate. The [affordability calculator](https://mortgage-math-us.com/tools/affordability-calculator/?state=TX&income=64361) shows the price your own income supports at four debt-to-income limits.

## Property taxes inside city limits

At 1.43% of value, Houston’s effective rate is well above the national ratio of 0.89%. Texas has no state property tax, so every bill comes from local units: a Houston bill combines rates from the City, Harris County (or Fort Bend or Montgomery County for parts of the city), a school district and often a community college or special district, all applied to the value set by the county appraisal district.

Texas requires school districts to exempt $140,000 of a homestead’s value from school taxes. On a home at Houston’s median value, that covers about 46% of the value for the school portion of the bill — but you must file for it, and the county and city portions are taxed separately. See the [Texas guide](https://mortgage-math-us.com/location/texas/) for how the exemption and the over-65 addition work.

> **Tip: Use the listing’s actual tax bill**
>
> Because rates vary by school district and special district, two homes at the same price in different parts of Houston can have very different bills. Ask for the most recent tax statement and look up the property on the appraisal district’s website before you make an offer.

## Flood risk and insurance

Flooding is the cost Houston buyers most often underestimate. Standard homeowners policies don’t cover flood damage. If a home is in a high-risk Special Flood Hazard Area on FEMA’s flood maps and your mortgage comes from a federally regulated or insured lender, flood insurance is required for the life of the loan; outside those zones it’s optional but still worth pricing. Check the address on FEMA’s Flood Map Service Center and ask the seller about past flooding and insurance claims before the option period ends.

Wind is the other piece. The Texas Windstorm Insurance Association covers properties in the 14 first-tier coastal counties and parts of Harris County east of Highway 146 when private insurers decline the risk — most of the City of Houston is outside that area, so wind coverage usually comes from a standard policy.

## Down-payment help in Houston

The City of Houston’s Housing and Community Development Department runs two purchase programs for homes inside city limits:

| Program | Help available | Main rules |
|---|---|---|
| Homebuyer Assistance Program (HAP) | Up to $75,000, based on need, for down payment, closing costs and principal reduction | Household income up to 80% of area median (higher for some funding sources); first-time buyer (no home owned in the past 3 years); 8-hour HUD-approved homebuyer course; at least $350 of your own cash |
| Harvey Homebuyer Assistance Program 2.0 | Up to $125,000 | Income up to 120% of area median; you must have lived inside city limits on August 25, 2017 |

HAP assistance is a forgivable loan: amounts up to $50,000 are forgiven over 5 years if you keep living in the home, and larger amounts over 8 years. Sell, refinance or move out sooner and part of it is repaid. Funding opens and closes during the year, so check the City’s Homebuyer Hub for current status before you sign a contract.

Statewide programs from TDHCA and TSAHC — 2%–5% of the loan through participating lenders — are available in Houston too and can suit buyers above the City’s income limits. Compare all three in the [first-time buyer programs guide](https://mortgage-math-us.com/first-time-buyers/programs/).

## Renting vs buying in Houston

The median Houston renter pays $1,408 a month, against $2,633 to own the median home with 10% down — before maintenance. Owning wins only if you stay long enough for equity and price growth to cover buying and selling costs. The [rent vs buy calculator](https://mortgage-math-us.com/tools/rent-vs-buy-calculator/?state=TX&price=301000&rent=1408&tax=1.43) opens with Houston’s median price, rent and tax rate so you can test how long that takes.

## Frequently asked questions

### What is the median home price in Houston?

The Census Bureau’s 2024 American Community Survey puts the median value of owner-occupied homes in the City of Houston at $301,200, compared with $313,200 for Texas and $360,600 for the US.

### What is the property tax rate in Houston?

Census figures put the median Houston homeowner’s tax bill at $4,308 a year, an effective rate of about 1.43% of home value. Your bill depends on the school district and special districts the home sits in, minus exemptions such as the school homestead exemption.

### How much income do you need to buy a house in Houston?

To keep housing under 30% of gross income on the median $301,200 home with 10% down at today’s average rate, you need roughly $105,305 a year, assuming no other large debts. The median Houston household earns $64,361.

### Does Houston offer down-payment assistance?

Yes. The City’s Homebuyer Assistance Program offers up to $75,000 to income-qualified first-time buyers purchasing inside city limits, as a forgivable loan. Statewide TDHCA and TSAHC programs are also available through participating lenders.

### Do I need flood insurance in Houston?

If the home is in a FEMA Special Flood Hazard Area and your loan comes from a federally regulated or insured lender, yes. Elsewhere it’s optional, but standard homeowners policies don’t cover flooding, so many Houston owners buy it anyway.

### Is there a transfer tax when buying a home in Houston?

No. The Texas Constitution prohibits real estate transfer taxes, so Houston buyers and sellers pay recording fees but no transfer tax.

## Sources

- [Freddie Mac Primary Mortgage Market Survey](https://www.freddiemac.com/pmms) — 30-year fixed rate, national weekly average (Week of Oct 29, 2026)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25077?g=160XX00US4835000) — Median value of owner-occupied homes (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B19013?g=160XX00US4835000) — Median household income (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25103?g=160XX00US4835000) — Effective property tax rate (median taxes ÷ median home value); Median real estate taxes paid by homeowners (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25064?g=160XX00US4835000) — Median gross rent (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25077?g=040XX00US48) — Median value of owner-occupied homes (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B19013?g=040XX00US48) — Median household income (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25077?g=010XX00US) — Median value of owner-occupied homes (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B19013?g=010XX00US) — Median household income (2024 ACS 1-year)
- [Texas Department of Insurance](https://www.tdi.texas.gov/general/texas-homeowners-insurance-market-overview.html) — Average Texas homeowners insurance premium (2025 (preliminary))
- [Freddie Mac My Home](https://myhome.freddiemac.com/buying/breaking-down-pmi) — Typical PMI cost, low end; Typical PMI cost, high end (Oct 28, 2026)
- [CFPB](https://www.consumerfinance.gov/owning-a-home/prepare/figure-out-how-much-you-want-to-spend/) — Typical closing costs, low end (share of purchase price); Typical closing costs, high end (share of purchase price) (Oct 28, 2026)
- [Freddie Mac My Home](https://myhome.freddiemac.com/blog/homebuying/how-much-can-you-afford) — Freddie Mac guidance: housing costs below this share of gross income (Jan 22, 2026)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25003?g=160XX00US4835000) — Share of occupied homes lived in by their owners (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25103?g=010XX00US) — Effective property tax rate (median taxes ÷ median home value) (2024 ACS 1-year)
- [Texas Comptroller](https://comptroller.texas.gov/taxes/property-tax/exemptions/) — School district residence homestead exemption (Dec 11, 2025)
- [City of Houston HAP Guidelines, version 8.0](https://houstontx.gov/housing/plans-reports/guidelines/hap/Homebuyer_Assistance_Program_HAP_Guidelines-8.0-Entitlement-071526.pdf) — City of Houston Homebuyer Assistance Program (HAP), up to; HAP income limit, CDBG-funded assistance (share of area median income); HAP minimum cash investment by the buyer (Jun 23, 2026)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25003?g=040XX00US48) — Share of occupied homes lived in by their owners (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25003?g=010XX00US) — Share of occupied homes lived in by their owners (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25103?g=040XX00US48) — Effective property tax rate (median taxes ÷ median home value) (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25064?g=040XX00US48) — Median gross rent (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25064?g=010XX00US) — Median gross rent (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25088?g=160XX00US4835000) — Median monthly owner costs, homes with a mortgage (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25088?g=040XX00US48) — Median monthly owner costs, homes with a mortgage (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25088?g=010XX00US) — Median monthly owner costs, homes with a mortgage (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25035?g=160XX00US4835000) — Median year homes were built (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25035?g=040XX00US48) — Median year homes were built (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25035?g=010XX00US) — Median year homes were built (2024 ACS 1-year)
- [Texas Windstorm Insurance Association](https://www.twia.org/coverage-eligibility/) — First-tier coastal counties in the TWIA windstorm area (Oct 28, 2026)
- [42 U.S.C. 12704(14)](https://www.law.cornell.edu/uscode/text/42/12704) — First-time homebuyer: has not owned a home in the past (HUD/HOME statute) (Oct 28, 2026)
- [City of Houston Housing and Community Development: Homebuyer Hub](https://www.houstontx.gov/housing/hbhub.html) — Hours of HUD-approved homebuyer education required by City of Houston programs; Harvey Homebuyer Assistance Program 2.0 (HbAP 2.0), up to; HbAP 2.0 income limit (share of area median income) (Oct 29, 2026)
- [Texas Department of Housing and Community Affairs](https://welcomehome.tdhca.texas.gov/uploads/My-First-Texas-Home-Program-Matrix-TMS.pdf) — TDHCA My First Texas Home assistance, low end (share of loan); TDHCA My First Texas Home assistance, high end (share of loan) (Program matrix Aug 17, 2026)
- [City of Houston Housing and Community Development: Homebuyer Hub](https://www.houstontx.gov/housing/hbhub.html)
- [FEMA: Flood insurance](https://www.fema.gov/flood-insurance)
- [FEMA Flood Map Service Center](https://msc.fema.gov/portal/home)

_General information, not financial advice._