Texas Home Affordability Calculator
Estimate a Texas home price that fits your income, monthly debts, down payment and expected housing costs.
- 2026 figures, checked October 26, 2026
- 1 official source
- Private: runs in your browser
- How we check our work
Result
…
Verify before you act: review these results with a licensed loan officer, real estate attorney or HUD-approved housing counselor before making any decision based on them.
Suggestions for your numbers
Updated as you type, from your inputs only. General information, not personal advice; confirm any change with a qualified professional.
See it over time
Hover over or tap the chart to see the numbers for any point.
What is home affordability?
Home affordability is an estimate of how much you can spend on a home while keeping its monthly housing costs within a budget based on your income and debts. This Texas Home Affordability Calculator estimates a maximum purchase price from your gross household income, other monthly debt payments, down payment, interest rate, loan term, property tax rate, homeowners insurance and HOA dues.
The calculator sets your monthly housing budget at the lower of two limits: the housing payment limit as a share of gross monthly income, or the total debt limit as a share of income minus your other monthly debts. It then solves for a home price whose principal, interest, property tax, insurance and HOA costs fit that budget. The down payment is added to the estimated loan amount to get the price.
Why home affordability matters
A lender’s maximum loan offer is not necessarily the amount that fits your household budget. A realistic estimate can help you set a home-search price range before you make an offer, compare homes with different tax rates or HOA dues, and decide how much cash to put down.
Your housing payment also affects other decisions. A larger payment may leave less room for saving, paying down debt, repairs or changes in income. If the estimate feels tight, you can compare a less expensive home with a larger down payment or a different loan term before committing.
The calculator estimates principal and interest, property tax, homeowners insurance and HOA dues. It does not include every expense of owning a home, such as closing costs, utilities, maintenance or mortgage insurance. Treat the result as a planning estimate, not a lender’s approval or a promise that a home is affordable for you.
How to use this Texas home affordability calculator
- Enter your gross household income per year before taxes and deductions. Use income you expect to rely on for the mortgage.
- Enter your other monthly debt payments, such as required payments on loans and credit accounts. Use current payment amounts rather than the outstanding balances.
- Enter the down payment you expect to make, your interest rate and the loan term. If you are comparing loan offers, use the rate and term from each offer in a separate calculation.
- Enter the property tax rate and annual homeowners insurance cost for the home or area you are considering. Add monthly HOA dues if applicable. Taxes, insurance and HOA costs can vary between properties, so update these inputs as you narrow your search.
- Review the housing payment limit and total debt limit. You can adjust the percentage limits to test a more conservative budget, but a calculator estimate does not establish what a lender will approve.
- Use the result to guide your search, then verify the loan payment, tax estimate, insurance quote and HOA dues with the relevant lender, insurer, seller or association before making a decision.
Texas home affordability calculator example
Worked example
With gross household income of $120,000 per year, other monthly debt payments of $600, a $40,000 down payment, a 6.5% interest rate and a 30-year term, the sample uses a 1.8% property tax rate, $2,800 in annual homeowners insurance, no HOA dues, a 28% housing payment limit and a 36% total debt limit. Gross monthly income is $10,000. The housing limit is $2,800, while the total-debt limit minus other debts is $3,000, so the monthly housing budget is $2,800. The estimated affordable home price is $360,518, including a $320,518 loan. Estimated principal and interest are $2,026, with $774 for property tax, insurance and HOA.
How to read your home affordability results
The home price you can afford is the calculator’s estimated maximum under the income limits and costs you entered. It is not a recommended offer price. The housing payment budget is the smaller of the housing limit and the total-debt limit after other debts are accounted for. In the sample, the housing limit is lower, so it sets the budget.
The loan amount is the estimated price less the down payment. Principal and interest cover repayment of the mortgage loan. Property tax, insurance and HOA are shown together because they also use part of the monthly housing budget. Check the detailed cost assumptions: a change in tax rate, insurance premium, HOA dues or interest rate can change the estimated price you can afford.
How to improve your home affordability
- 01
Pay down monthly debts
Reducing required monthly payments can leave more room under the total-debt limit. Before you apply, compare the cost of paying down a debt with keeping that cash available for your down payment, closing costs and reserves.
- 02
Build a larger down payment
A larger down payment can reduce the loan amount needed for the same home price. Keep enough cash for expenses that are not included in this estimate, and ask a lender how your down payment affects the full loan costs.
- 03
Compare the full cost of homes
A lower purchase price is not the only way to reduce the payment. Compare property tax rates, insurance quotes and HOA dues for the specific homes you are considering. Ask for current estimates rather than relying on an area-wide guess.
- 04
Compare loan offers and terms
Ask lenders for written estimates and compare the interest rate, loan term, monthly payment and fees. A shorter term can raise the monthly principal-and-interest payment even when it may reduce the time you repay the loan. Use the calculator to see how an offer fits your budget.
- 05
Set a budget below the calculated maximum
Choose a payment that leaves room for repairs, utilities, savings and changing expenses. You can lower the housing payment limit in the calculator to test a more cautious purchase range.
Common home affordability calculator mistakes
Using take-home pay instead of gross income
The calculator’s limits use gross income, before taxes and payroll deductions. Review your actual take-home pay separately to make sure the estimated payment fits your monthly cash flow.
Leaving out debts or housing costs
Include required monthly debt payments, likely HOA dues, and realistic tax and insurance estimates. Missing costs can make the estimated home price look higher than it should.
Treating the result as a complete ownership budget
The estimate does not include closing costs, utilities, maintenance or mortgage insurance. Ask your lender about mortgage insurance and budget separately for costs the calculator leaves out.
Assuming the estimate equals loan approval
Lenders review information beyond this calculator’s inputs. The CFPB explains debt-to-income ratio as a comparison of monthly debt payments with gross monthly income, but each lender and loan program may assess an application differently. Confirm your borrowing options with a lender.
The home affordability formula
The monthly housing budget is the lower of the housing ratio and the total-debt ratio minus other debts. The price is solved so principal, interest, property tax, insurance and HOA fit that budget.
Key terms
- Gross household income
- Household income before taxes and other payroll deductions. The calculator converts annual gross income to a monthly amount for its payment limits.
- Debt-to-income ratio
- A comparison of monthly debt payments with gross monthly income. The calculator uses a housing limit and a total-debt limit to estimate a monthly housing budget.
- Principal and interest
- The part of a mortgage payment that repays the loan balance and pays interest on the loan.
- Down payment
- The amount you pay toward the home price rather than borrowing. In this estimate, the down payment is added to the affordable loan amount to calculate the home price.
- Property tax rate
- The rate used to estimate property tax as part of the monthly housing cost. Actual tax bills depend on the property and its applicable tax assessments.
Home affordability questions
What debt-to-income ratio do lenders want?
Many lenders prefer total debt at or below 36% of gross income, though some loan programs allow more.
Does the estimate include closing costs?
No. The estimated price and monthly housing budget do not include closing costs. Ask your lender for an estimate of the cash you may need at closing.
Does the calculator include mortgage insurance?
No. Its monthly cost calculation includes principal, interest, property tax, homeowners insurance and HOA dues. Ask your lender whether mortgage insurance applies and how it changes your payment.
Why is the result different from a lender’s estimate?
The calculator uses the inputs you provide and applies the housing and total-debt limits you select. A lender may use different loan terms, property cost estimates and application details when reviewing your borrowing options.
Can I use the result as my offer budget?
Use it as a starting point, not a required spending target. Set your own comfortable payment, account for costs the calculator excludes, and verify the home’s taxes, insurance and HOA dues before making an offer.
Sources
Before you act on this result. Cordwell calculators and guides are educational estimates, not legal, tax, investment, lending or other professional advice. They rely on the numbers you enter and on simplified rules, and they can't see your full situation. Before you file, sign, borrow, invest, hire, change your withholding or form a business based on anything here, meet with a licensed loan officer, real estate attorney or HUD-approved housing counselor who can review your specific facts and confirm the numbers. Rules change, and official agency guidance always controls.