How Much House Can I Afford on $100K in Texas? (2026 Calculator)

What Can You Actually Afford on $100K in Texas?

If you earn $100,000 per year in Texas, you can afford a home priced between $420,000 and $470,000 with a 20% down payment, assuming a 6.5% mortgage rate, no significant debts, and good credit. That range shifts based on your city because Texas property tax rates vary widely — from around 1.6% in parts of San Antonio to over 2.5% in some Austin and Dallas suburbs. The higher the tax rate, the less house you can afford on the same income.

Here is the baseline math. Your gross monthly income is $8,333 ($100,000 divided by 12). Most conventional lenders use two ratios to determine how much they will lend you: the 28% front-end ratio for housing costs and the 36% back-end ratio for all debts combined. That gives you a maximum housing payment of $2,333 per month and a total debt ceiling of $3,000 per month.

That $2,333 has to cover everything: principal, interest, property taxes, homeowner's insurance, HOA fees (if applicable), and PMI (if you put less than 20% down). In Texas, property taxes alone consume 30-40% of that budget — which is why the same $100K salary buys significantly more house in a state like Florida or Colorado than it does here.

But here is the upside: Texas has no state income tax. That $100K salary puts roughly $6,800-$7,200 in your pocket each month after federal taxes and deductions, compared to $6,100-$6,600 in a state like California with a 9.3% state income tax bracket. You earn more take-home pay, but you pay more in property taxes. The net effect on affordability depends on how much home you buy and where in Texas you buy it.

Use our mortgage calculator to run your own numbers with your exact income, debts, and target city.

How Does the Debt-to-Income Ratio Work?

Your debt-to-income (DTI) ratio is the single most important number in mortgage lending. It measures what percentage of your gross monthly income goes to debt payments. Lenders use two versions of this ratio, and understanding both is critical to knowing your actual buying power.

Front-end DTI (28% max): This measures only your housing costs — mortgage payment, property taxes, homeowner's insurance, HOA, and PMI if applicable. On $100K, the maximum is $2,333/month. Most lenders enforce this ceiling strictly for conventional loans, though some FHA and VA programs allow up to 31%.

Back-end DTI (36% max): This measures all of your monthly debt obligations combined — housing costs plus car payments, student loans, credit card minimums, personal loans, and any other recurring debt. On $100K, the maximum is $3,000/month. Some lenders will stretch to 43% or even 50% for borrowers with strong credit and large down payments, but 36% is the standard guideline.

Here is where it gets practical. If you have a $400/month car payment and $200/month in student loans, that is $600/month in existing debt. Your back-end DTI allows $3,000 total, so you have $2,400 remaining for housing. But wait — the front-end limit is $2,333. So in this case, the front-end ratio is your binding constraint, and your maximum housing payment stays at $2,333.

Now consider a different scenario: you have a $500/month car payment, $300/month in student loans, and $200/month in credit card minimums. That is $1,000/month in existing debt. Your back-end limit is $3,000, leaving only $2,000 for housing — which is now the binding constraint, even though the front-end ratio would allow $2,333. Your effective maximum home price just dropped by $40,000-$50,000.

The takeaway: every $100/month in existing debt reduces your home buying power by approximately $12,000-$15,000. If you are planning to buy within the next 6-12 months, aggressively paying down car loans or credit cards can meaningfully increase the home you can afford. Take our home affordability quiz to see your personalized numbers.

How Do Texas Property Taxes Affect Your Buying Power?

This is the factor that surprises most buyers moving to Texas — and the one that matters most for affordability calculations. Texas has no state income tax, but it compensates with property tax rates that are among the highest in the country. The statewide average effective rate is approximately 1.8%, but many areas run 2.0%-2.5% or higher.

To understand the impact, let's compare two scenarios on a $430,000 home with a 6.5% mortgage rate and 20% down payment ($344,000 loan):

The $470/month difference means that to hit the same $2,333 housing payment on $100K in Texas, you need to buy roughly $50,000-$80,000 less house than you would in a state with 1% property taxes. That is the Texas property tax penalty, and it is the single biggest variable in your affordability equation.

Property tax rates vary significantly within Texas. Here are effective rates for the major metro areas:

• Austin metro: 1.8%-2.5% (Travis County averages ~1.95%, Williamson County ~2.2%)
• Dallas metro: 1.9%-2.4% (Dallas County ~2.0%, Collin County ~2.1%)
• Houston metro: 1.8%-2.3% (Harris County ~2.0%, Fort Bend County ~2.3%)
• San Antonio metro: 1.6%-2.2% (Bexar County ~1.85%, Comal County ~1.7%)

The homestead exemption can reduce your taxable value by $100,000 for school district taxes, which saves roughly $800-$1,200/year depending on your school tax rate. Make sure you file — it is free and it lowers your monthly payment. Use our property tax calculator to estimate your taxes by address.

What Does $100K Buy in Austin, Dallas, Houston, and San Antonio?

Your $100K salary buys very different homes depending on where in Texas you choose to live. Below is a city-by-city breakdown assuming a 6.5% mortgage rate, 20% down payment, no other debts, and the 28% front-end DTI limit of $2,333/month.

Austin: ~$420,000 Max Purchase Price

Austin has the highest effective property tax rates in the state's major metros, with Travis County averaging 1.95% and surrounding Williamson County hitting 2.2% or higher. Combined with some of the highest home insurance premiums in Texas due to hail and storm exposure, Austin is the most expensive major city for homeownership costs relative to purchase price.

On $100K with 20% down, you are looking at approximately $420,000 — which in 2026 buys you a 1,400-1,700 sq ft home in neighborhoods like Pflugerville, Round Rock, Manor, or southeast Austin. Updated 3-bedroom homes in central Austin at this price point are rare; you will typically need to look at condos or townhomes within the city core. First-time buyers should read our first-time home buyer guide for Texas for Austin-specific programs.

Sample monthly payment on a $420,000 Austin home (20% down):

• Principal & Interest: $2,124/mo
• Property Taxes (2.0%): $700/mo
• Homeowner's Insurance: $230/mo
• HOA (if applicable): $0-$250/mo
• Total without HOA: $3,054/mo

Dallas: ~$440,000 Max Purchase Price

Dallas offers slightly better buying power than Austin because the median home price is lower, even though property tax rates are comparable. Dallas County averages about 2.0%, and Collin County (Frisco, McKinney, Plano) runs 2.0%-2.1%. Tarrant County (Arlington, mid-cities) is slightly lower at 1.9%.

A $440,000 budget in 2026 Dallas gives you access to 1,600-2,000 sq ft homes in areas like Garland, Mesquite, Grand Prairie, and older parts of Plano and Richardson. If you want newer construction, look to Forney, Celina, or Anna where builders are delivering 2,000+ sq ft homes in the low $400s.

Sample monthly payment on a $440,000 Dallas home (20% down):

• Principal & Interest: $2,225/mo
• Property Taxes (2.0%): $733/mo
• Homeowner's Insurance: $220/mo
• HOA (if applicable): $0-$150/mo
• Total without HOA: $3,178/mo

Houston: ~$460,000 Max Purchase Price

Houston punches above its weight for affordability. Despite being the fourth-largest city in the country, median home prices remain below Austin and Dallas. Harris County's effective rate averages around 2.0%, but several surrounding counties (Montgomery, Galveston) come in at 1.8%-1.9%. Houston also has no zoning laws, which keeps housing supply more flexible than in other Texas metros.

At $460,000, you can find 1,800-2,200 sq ft homes in Katy, Cypress, Pearland, League City, and Spring. Inside the loop (610), you are looking at townhomes and smaller single-family homes in Montrose, the Heights, or Garden Oaks. The Energy Corridor and Memorial area offer solid options at this price point as well.

Sample monthly payment on a $460,000 Houston home (20% down):

• Principal & Interest: $2,326/mo
• Property Taxes (1.9%): $728/mo
• Homeowner's Insurance: $250/mo (higher due to flood/hurricane risk)
• HOA (if applicable): $0-$200/mo
• Total without HOA: $3,304/mo

San Antonio: ~$470,000 Max Purchase Price

San Antonio consistently offers the best value among Texas's Big Four metros. Bexar County's effective property tax rate averages 1.85%, and surrounding counties like Comal (New Braunfels, Schertz) run as low as 1.7%. Home prices are also the lowest of the major metros, meaning your dollar stretches furthest here.

A $470,000 budget in San Antonio buys a 2,000-2,500 sq ft home in desirable areas like Stone Oak, Alamo Heights (border neighborhoods), Cibolo, Boerne, and the far north side. New construction communities in Converse, Schertz, and New Braunfels regularly deliver modern 4-bedroom homes under $450K.

Sample monthly payment on a $470,000 San Antonio home (20% down):

• Principal & Interest: $2,377/mo
• Property Taxes (1.85%): $725/mo
• Homeowner's Insurance: $200/mo
• HOA (if applicable): $0-$100/mo
• Total without HOA: $3,302/mo

Should You Put 20% Down or 5% Down?

Your down payment is the second-biggest lever (after DTI) in determining how much house you can afford. The difference between 20% down and 5% down is not just the cash outlay — it changes your monthly payment, your loan amount, and whether you pay private mortgage insurance (PMI).

Let's compare both scenarios on a $430,000 home in Texas at 6.5%:

With 5% down, the $577/month higher payment means you either need to target a lower price point ($380,000-$400,000 to stay under the 28% DTI limit) or accept a higher DTI ratio if your lender allows it. PMI typically costs 0.5%-1.0% of the loan amount annually and can be removed once you reach 20% equity — usually 5-7 years of payments and appreciation combined.

The cash difference is stark: 20% down requires roughly $99,000 (including $13,000 in closing costs), while 5% down requires about $34,500 ($21,500 down plus $13,000 in closing costs). If you have the savings, 20% down gives you the lowest monthly payment, the most buying power, and the strongest offer in a competitive market. If you do not, 5% down gets you into a home years sooner — and in a market where homes appreciate 3-5% annually, waiting two years to save an additional $65,000 could cost you $25,000-$45,000 in missed appreciation.

What Are the Hidden Costs Beyond Your Mortgage?

Your mortgage payment is only part of the story. Texas homeownership comes with several recurring costs that can add $400-$800/month on top of your principal and interest. Failing to budget for these is one of the most common mistakes first-time buyers make.

Homeowner's Insurance: $180-$300/month

Texas homeowner's insurance premiums are among the highest in the country, driven by hail, wind, and storm exposure. The statewide average for a $400,000-$450,000 home runs $2,400-$3,200/year ($200-$267/month). Houston-area premiums are typically higher due to hurricane and flood risk — and standard policies do not include flood insurance, which is a separate $1,200-$2,500/year cost if your home is in a FEMA flood zone.

HOA Fees: $0-$350/month

In Texas, approximately 60% of homes built since 2000 are in HOA communities. Monthly dues range from $25/month for basic neighborhood maintenance to $350+/month for master-planned communities with pools, fitness centers, and extensive amenities. Some HOA communities also charge special assessments for major infrastructure repairs — fencing, roofing in townhome communities, or road resurfacing. Always ask for the HOA budget and reserve study before buying.

Maintenance: 1-2% of Home Value/Year

Budget at least 1% of your home's value annually for maintenance and repairs — that is $4,300/year ($358/month) on a $430,000 home. Texas-specific costs include HVAC servicing (your system runs 8-9 months per year in Texas heat), foundation maintenance and watering (critical in clay soil areas), roof repairs from hail, and pest control. Older homes may need 2% or more. New construction typically needs less in the first 5 years.

Utilities: $250-$400/month

Texas electricity bills spike dramatically in summer. Budget $150-$300/month for electricity (higher in July and August), $30-$60/month for water and sewer, $30-$50/month for natural gas, and $20-$40/month for trash and recycling. Total utility costs for a 1,800 sq ft home typically run $250-$400/month, with summer peaks reaching $350-$500.

What Is the Difference Between Pre-Approval and Pre-Qualification?

These two terms sound similar but carry vastly different weight in the Texas housing market. Understanding the distinction can mean the difference between winning and losing a competitive offer situation.

Pre-qualification is an informal estimate. You tell a lender your income, debts, and assets — often over the phone or through an online form — and they give you a rough idea of how much you can borrow. No documents are verified. No credit check is performed. The number is essentially a guess, and sellers know it. A pre-qualification letter is worth very little in a competitive offer.

Pre-approval is a conditional commitment. The lender pulls your credit report, verifies your income through pay stubs and tax returns, reviews your bank statements, and runs your application through their underwriting system. The result is a pre-approval letter stating a specific loan amount the lender is willing to fund, subject to the property appraising at the purchase price. This letter typically expires after 60-90 days.

In the current Texas market, pre-approval is non-negotiable. Most listing agents will not present offers to their sellers without a pre-approval letter. In multiple-offer situations, the buyer with the strongest pre-approval (from a reputable lender, showing verified financials) wins over the buyer with only a pre-qualification — even if the pre-qualification buyer offers slightly more.

The pre-approval process takes 1-3 business days and requires the following documents:

• Last 2 years of W-2s or 1099s
• Last 2 months of pay stubs
• Last 2 months of bank statements (all pages, all accounts)
• Last 2 years of federal tax returns
• Government-issued photo ID
• Social Security number (for the credit pull)

Start the pre-approval process 2-4 weeks before you plan to start house hunting. If your credit score is below 740, use those weeks to pay down credit card balances and dispute any errors on your credit report — even a 20-point improvement can lower your rate by 0.125%-0.25%, which saves $20-$40/month on a typical Texas mortgage.

How Can You Stretch Your Budget Further?

If the $420K-$470K range does not cover the home or neighborhood you want, there are several strategies to extend your buying power without earning more income.

Down Payment Assistance Programs

Texas offers some of the most generous down payment assistance (DPA) programs in the country. The Texas State Affordable Housing Corporation (TSAHC) provides grants of 3-5% of the purchase price for eligible first-time buyers (and some repeat buyers in targeted areas). The Texas Department of Housing and Community Affairs (TDHCA) offers the My First Texas Home program with down payment and closing cost assistance up to 5% of the loan amount. These programs have income limits — typically $100,000-$120,000 depending on the county — so a $100K earner may qualify, especially in higher-cost counties like Travis (Austin). Check our first-time home buyer guide for the latest program details.

Mortgage Rate Buydowns

A rate buydown lets you pay upfront to reduce your interest rate. A 2-1 buydown on a $344,000 loan (20% down on $430K) costs approximately $5,500-$7,000 and reduces your rate by 2 points in year one and 1 point in year two. That drops your initial monthly P&I from $2,175 to approximately $1,730 in year one and $1,950 in year two, before settling at the full rate in year three. In many Texas markets, sellers will contribute to buydowns as part of their concessions — ask your agent to negotiate this.

Suburban and Emerging Markets

The fastest way to get more house for your money is to move further from the urban core. In Austin, moving from Travis County to Hays County (Kyle, Buda, San Marcos) or Bastrop County (Bastrop, Elgin) can save $30,000-$60,000 on a comparable home. In Dallas, look at Kaufman County (Forney, Terrell) or Rockwall County. In Houston, Fort Bend County (Rosenberg, Needville) and Galveston County offer value. Many of these areas have improving school districts, new retail, and 30-45 minute commutes to major employment centers.

New Construction Builder Incentives

National and regional builders in Texas frequently offer $15,000-$30,000 in closing cost credits, rate buydowns, and design upgrades to buyers who use their preferred lender and title company. In 2026, many builders in the Austin, Dallas, and Houston suburbs are offering 2-1 buydowns at no cost to the buyer, plus $10,000-$15,000 in design center credits. These incentives can effectively increase your buying power by 5-7% compared to the resale market. The tradeoff is that you typically pay slightly more per square foot than a comparable resale home, and you wait 4-8 months for completion.

Reduce Existing Debt First

As covered in the DTI section, every $100/month in debt you eliminate adds $12,000-$15,000 to your home buying power. If you have $500/month in car and student loan payments, paying those off (or down significantly) before applying for a mortgage could increase your maximum home price by $60,000-$75,000. Even paying off a single $300/month car payment opens up approximately $36,000-$45,000 in additional buying power — the difference between a starter home and the home you actually want.

What Do Real Monthly Payment Scenarios Look Like?

Let's walk through three realistic scenarios for a $100K earner buying in Texas. These cover the spectrum from conservative to aggressive to help you find where you're comfortable.

Scenario 1: Conservative Buyer ($380,000 home, 20% down)

This buyer has $76,000 saved for a down payment, no other debts, and wants the lowest possible monthly payment with a healthy cushion.

• Loan amount: $304,000
• P&I at 6.5%: $1,922/mo
• Property taxes (2.0%): $633/mo
• Insurance: $200/mo
• PMI: $0
• Total PITI: $2,755/mo (33% of gross income)
• Remaining take-home after housing: ~$4,000-$4,400/mo

This scenario leaves substantial room for savings, retirement contributions, and lifestyle spending. The front-end DTI is under 28%, giving this buyer maximum financial flexibility.

Scenario 2: Balanced Buyer ($430,000 home, 10% down)

This buyer has $43,000 for a down payment, a $350/month car payment, and wants to balance home quality with monthly comfort.

• Loan amount: $387,000
• P&I at 6.5%: $2,446/mo
• Property taxes (2.0%): $717/mo
• Insurance: $220/mo
• PMI: $145/mo
• Total PITI + PMI: $3,528/mo
• Total debt payments: $3,878/mo (46.5% of gross — needs lender flexibility on DTI)

This scenario pushes past the 36% back-end DTI guideline, so the buyer needs a lender comfortable with a 43-45% DTI — which many are for borrowers with 720+ credit scores and stable income. The monthly payment is manageable on $100K take-home but leaves less buffer for unexpected expenses.

Scenario 3: Aggressive Buyer ($470,000 home, 5% down, San Antonio)

This buyer prioritizes getting into the most home possible, has $23,500 for a down payment, and no other debts.

• Loan amount: $446,500
• P&I at 6.5%: $2,823/mo
• Property taxes (1.85%): $725/mo
• Insurance: $200/mo
• PMI: $185/mo
• Total PITI + PMI: $3,933/mo (47.2% of gross)

This scenario requires a lender comfortable with a high DTI and is only feasible with zero other debts. The buyer is house-rich but cash-flow-tight, with roughly $2,900-$3,200/month remaining for all other living expenses. This is the upper limit of what is possible — not necessarily what is advisable.

What Mistakes Should You Avoid When Buying at $100K?

After helping hundreds of Texas buyers in this income range, here are the most common mistakes we see — and how to avoid them.

1. Ignoring property taxes in your budget. We cannot overstate this. A buyer from Colorado or Washington may be used to 0.6%-1.0% property tax rates. Texas's 2%+ rates can add $500-$800/month to your housing costs compared to what they paid in their previous state. Always calculate PITI (principal, interest, taxes, and insurance) — never just the mortgage payment.

2. Maxing out your DTI. Just because a lender will approve you at 43% DTI does not mean you should borrow that much. At 43% DTI on $100K, your total debt payments consume $3,583/month of your $8,333 gross income. After taxes, that leaves roughly $2,600-$3,000/month for food, transportation, utilities, childcare, savings, and everything else. Most financial advisors recommend keeping total housing costs (including maintenance and utilities) below 30% of gross income for long-term financial health.

3. Forgetting about closing costs. In Texas, closing costs typically run 2-3% of the purchase price — $8,600-$12,900 on a $430,000 home. This is cash you need on top of your down payment. Closing costs include lender fees, title insurance (in Texas, the seller typically pays the owner's policy but the buyer pays the lender's policy), appraisal fee, home inspection, survey, and prepaid taxes and insurance into escrow.

4. Skipping the home inspection. In competitive markets, some buyers waive the inspection to make their offer more attractive. Do not do this in Texas. Foundation issues (extremely common in clay soil areas), plumbing under slab (cast iron pipe replacement runs $15,000-$30,000), and roof damage from hail are all issues that a $400-$600 inspection can catch before you commit to a $430,000 purchase. The inspection contingency is your safety net.

5. Not shopping multiple lenders. Mortgage rates and fees vary significantly between lenders. On a $344,000 loan, a 0.25% rate difference saves approximately $50/month or $18,000 over the life of the loan. Get quotes from at least three lenders — a national bank, a credit union, and a mortgage broker. Compare both the interest rate and the lender fees (origination charges, discount points, and third-party fees).

6. Buying before you are financially ready. Having a $100K salary does not automatically mean you are ready to buy. You should have at least 3-6 months of total living expenses in an emergency fund separate from your down payment, a stable employment history (most lenders require 2 years at the same employer or in the same field), and a credit score above 680 (ideally 720+). If any of these are not in place, spending 6-12 months building your financial foundation will save you money and stress in the long run.

Frequently Asked Questions

How much house can I afford on a $100K salary in Texas? +

On a $100,000 salary in Texas with 20% down, no other debts, and a 6.5% mortgage rate, you can afford approximately $420,000-$470,000 depending on the city. Higher property tax rates in cities like Austin reduce your buying power compared to San Antonio or Houston. With 5% down, your range drops to $380,000-$400,000 due to PMI costs.

What is the 28/36 rule for mortgage affordability? +

The 28/36 rule states that your total housing payment (mortgage, taxes, insurance, HOA) should not exceed 28% of your gross monthly income (front-end ratio), and your total monthly debt payments including housing should not exceed 36% of gross monthly income (back-end ratio). On $100K, that means a maximum housing payment of $2,333/month and total debt of $3,000/month.

How do Texas property taxes affect home affordability? +

Texas has no state income tax but compensates with property taxes averaging 1.8%-2.5% of appraised value. On a $430,000 home, that is $7,740-$10,750 per year ($645-$896/month). This significantly reduces buying power compared to states with 1% property tax rates, where you could afford roughly $50,000-$80,000 more home on the same salary.

Should I put 20% down or 5% down on a house in Texas? +

Putting 20% down eliminates private mortgage insurance (PMI), which saves $150-$200/month on a typical Texas home. It also gives you lower monthly payments and more equity from day one. However, 5% down lets you buy sooner and keep cash reserves. If you put 5% down on a $400,000 home, you need $20,000 plus $12,000-$16,000 in closing costs versus $80,000 plus closing costs for 20% down.

What is the difference between pre-approval and pre-qualification for a mortgage? +

Pre-qualification is an informal estimate based on self-reported income and debt — it takes minutes but carries little weight with sellers. Pre-approval involves a full credit check, income verification, and document review by the lender, resulting in a conditional commitment letter for a specific loan amount. In competitive Texas markets, sellers strongly prefer offers with pre-approval letters.

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