How Much House Can I Afford in Houston? (2026 Calculator Guide)

How Much House Can I Afford in Houston? (2026 Calculator Guide)

Before you start looking at homes, you need to know your number. Not the maximum your lender approves — the amount you can comfortably afford while still living your life.

THE 28/36 RULE

Most lenders use the 28/36 rule:

Your monthly housing costs (mortgage + taxes + insurance + HOA) should not exceed 28% of your gross monthly income.

Your total debt payments (housing + car + student loans + credit cards) should not exceed 36% of your gross monthly income.

Example: If your household earns $100,000/year ($8,333/month), your housing payment should stay under $2,333/month and your total debt under $3,000/month.

WHAT GOES INTO YOUR MONTHLY PAYMENT

Principal and interest — the actual loan payment

Property taxes — Houston averages 2–2.5% of assessed value annually. On a $400,000 home, that's $8,000–$10,000/year or $667–$833/month

Homeowner's insurance — typically $1,500–$3,000/year depending on the home

Flood insurance — required if your home is in a FEMA flood zone (common in Houston). Can add $500–$2,500/year

HOA fees — if applicable, typically $30–$300/month depending on the community

PMI (Private Mortgage Insurance) — required if your down payment is less than 20%, typically 0.5–1% of the loan amount annually

QUICK REFERENCE: WHAT DIFFERENT INCOMES CAN AFFORD

Household income $75,000 → Home price around $275,000–$300,000

Household income $100,000 → Home price around $375,000–$425,000

Household income $125,000 → Home price around $475,000–$525,000

Household income $150,000 → Home price around $575,000–$650,000

These are estimates assuming 5% down, current interest rates, and average Houston property taxes. Your actual number depends on your debts, credit score, and down payment.

HOUSTON-SPECIFIC FACTORS

Property taxes are higher than most states — but there's no state income tax, so the overall tax burden is often comparable or lower.

Flood insurance is a real cost. Before you fall in love with a home, check the FEMA flood zone. Some neighborhoods that flooded during Harvey have been significantly improved with new drainage infrastructure, but insurance costs remain elevated in certain areas.

HOA fees vary wildly. A master-planned community like Cinco Ranch might charge $1,000+/year, while an older neighborhood might have no HOA at all. Factor this into your budget.

WHAT YOUR LENDER LOOKS AT

Credit score — 740+ gets the best rates, 620+ qualifies for most conventional loans, 580+ for FHA

Debt-to-income ratio — total debts vs. total income

Employment history — typically 2 years of stable employment

Down payment — more down = lower monthly payment and no PMI

Reserves — some lenders want to see 2–6 months of payments saved after closing

NEXT STEP

Want to know your exact number? We'll connect you with a trusted Houston lender who can run the numbers and get you pre-approved — often within 24 hours. No cost, no obligation.

Call or text 832.512.1096

Visit thezilvetigroup.com

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