CALCMONEY // RENT VS BUY // TX
Compare the true monthly cost of buying vs renting in Texas using current home prices, mortgage rates, and property tax data.
Open Full Calculator$340,000
$2,726
$1,632
10 yrs
| Down Payment (20%) | $68,000 |
| Monthly Mortgage (P&I) | $1,791 |
| Monthly Property Tax | $510 |
| Monthly Insurance + Maintenance | $425 |
| Total Monthly Buy Cost | $2,726 |
| Estimated Monthly Rent | $1,632 |
| Monthly Buy Premium | +$1,094 |
| Break-Even Point | 10 years |
$403,813
$148,051
Texas Rent vs Buy Quick Reference 2026
| Metric | Value | Notes |
|---|---|---|
| Median Home Price | $340,000 | State median |
| Monthly Buy Cost | $2,726 | Mortgage + tax + ins + maintenance |
| Est. Monthly Rent | $1,632 | Based on price-to-rent ratio |
| Monthly Buy Premium | +$1,094 | Extra cost vs renting |
| Break-Even Point | 10 years | When equity > cumulative premium |
| 5-Year Equity Built | $148,051 | Down pmt + principal + appreciation |
Break-even assumes 3.5% annual home appreciation and 3% annual rent growth.
Texas has a cost of living index of 94 (national average = 100). Texas sits close to the national cost of living average, making the rent vs buy decision fairly balanced and highly sensitive to your specific situation, timeline, and local neighborhood.
At a 3-year horizon, renting in Texas is typically the lower-risk option because the buy premium of $1,094/month has not yet been offset by equity accumulation and appreciation. By year 10, cumulative equity growth and home appreciation generally surpass the total rent premium paid. Beyond 10 years, buying in Texas historically delivers stronger financial outcomes for most households.
Texas has no state income tax, which simplifies the tax picture. The federal mortgage interest deduction and property tax deduction (subject to the $10,000 SALT cap) remain available and can meaningfully reduce the net cost of homeownership.
Buying a median Texas home costs approximately $2,726/month all-in (mortgage principal and interest, property tax, insurance, and maintenance), compared to an estimated rent of $1,632/month. That means buying runs about $1,094/month more than renting right now. Whether buying makes financial sense depends on how long you plan to stay — the longer your horizon, the more equity and appreciation work in your favor.
Based on the monthly buy premium of $1,094, a 1.80% property tax rate, and an assumed 3.5% annual home appreciation, the estimated break-even point for buying vs renting in Texas is approximately 10 years. If you plan to stay longer than 10 years, buying is likely to outperform renting financially. Shorter stays favor renting.
The estimated annual rent-to-price ratio in Texas is 5.76%, based on a median home price of $340,000 and estimated monthly rent of $1,632. A ratio below 5% generally indicates a buyer's market where home prices are high relative to rents, making renting comparatively attractive. A ratio above 7% suggests rents are high relative to prices, which favors buying.
Texas's average property tax rate of 1.8% adds $510/month to the cost of owning the median home. This is significantly above the national average of around 1.1%, which meaningfully pushes up your monthly ownership cost and extends the break-even point versus renting. Property taxes are generally deductible on federal returns up to the $10,000 SALT cap.