It depends on income, existing debt, mortgage rates, and how strategically you approach the market. The good news is Houston continues to offer more buying power than many major U.S. cities, even in a higher-rate environment, if you plan carefully.
Why Houston Home Affordability Is Different Than Other Major Cities
Houston has long offered a rare balance of economic opportunity and relatively attainable home prices. While many coastal markets have priced out middle-income buyers, Houston still provides a wide range of options across neighborhoods, housing types, and price points.
Affordability, however, is not automatic.
By 2026, Houston buyers are navigating:
- Higher baseline mortgage rates compared to the ultra-low years
- Steadier price appreciation rather than rapid spikes
- Tighter underwriting standards and greater lender scrutiny
Buyers who understand how affordability is calculated, and how Houston’s market behaves, are better positioned to buy with confidence rather than guesswork.
What Home Affordability Really Means Beyond Purchase Price
When buyers ask how much home they can afford, many focus only on the sales price. Lenders and experienced buyers evaluate the full monthly obligation.
Monthly affordability typically includes:
- Principal and interest payment
- Property taxes, a major factor in Harris County and surrounding areas
- Homeowners insurance
- HOA dues (if applicable)
Most mortgage programs rely on two key metrics:
- Housing ratio: generally targeting 28 to 31 percent of gross monthly income
- Debt-to-income ratio (DTI): often capped around 43 to 45 percent, depending on loan type
Understanding these thresholds helps prevent stretching into a payment that feels uncomfortable long-term.
Income Benchmarks for Houston Homebuyers in 2026
While every buyer’s situation is unique, the following ranges reflect common affordability scenarios in a more normalized 2026 market.
| Household Income | Max Home Price | Monthly PITI | Example Neighborhoods |
| $75K-$90K | $250K-$300K | $1,800-$2,200 | Condos in Midtown, townhomes in Spring Branch |
| $100K-$130K | $350K-$450K | $2,500-$3,200 | Established areas like Cottage Grove, Shady Acres, Rice Military or new builds in Katy |
| $150K+ | $500K+ | $3,500+ | Oak Forest, Heights, Memorial with negotiating power |
Source: Calculations based on Freddie Mac rates and local medians.
Household Income of $75,000 to $90,000
Buyers in this range often consider:
- Condominiums or townhomes
- Smaller single-family homes
- Submarkets farther from major employment centers
Payment stability typically takes priority over home size.
Household Income of $100,000 to $130,000
This income band opens access to:
- Established neighborhoods with consistent resale demand
- Newer construction in developing areas
- Greater flexibility in floor plans and home features
This remains one of the most competitive buyer segments in the Houston market.
Household Income of $150,000 and Above
Higher-income buyers generally gain:
- Broader neighborhood selection
- Increased negotiating leverage
- Flexibility to balance lifestyle preferences, commute patterns, and long-term equity goals
At this level, affordability becomes less about qualification and more about strategic decision making.
How Interest Rates Affect Buying Power in 2026
Mortgage rates remain one of the most important affordability variables. Even modest rate shifts can materially impact purchasing power.
Key considerations include:
- A one-percent rate change can shift buying power by tens of thousands of dollars
- Monthly payment efficiency matters more than headline price
- Refinancing remains part of many long-term ownership strategies
For a detailed explanation of rate trends, buyers can review Freddie Mac’s mortgage rate data at https://www.freddiemac.com/pmms.
Houston-Specific Costs Buyers Should Plan For
Houston’s home affordability advantage comes with unique cost considerations that should be planned for early.
Property Taxes
Texas does not have a state income tax which places greater emphasis on property taxes. Rates vary widely by location and can significantly affect monthly payments.
Insurance Costs
Insurance premiums are influenced by construction type, home age, and location. Conservative estimates help prevent budget surprises.
HOA and Utilities
Many newer communities include HOA fees, and utility usage can vary substantially based on square footage and energy efficiency.
Accounting for these costs early creates a more realistic affordability picture.
Why Mortgage Approval Is Not the Same as True Affordability
Being approved for a certain loan amount does not always align with long-term financial comfort.
Experienced buyers often ask:
- Will this payment still feel manageable if expenses change?
- Does this home support my lifestyle over the next five to ten years?
- Am I preserving room for savings, travel, and investments?
Local expertise helps buyers align numbers with real-life goals.
At The Moore Real Estate Group, the focus is on helping buyers select homes that support long-term stability and flexibility. We can recommend local Lenders that can help walk you through all of the numbers and get your financing preapproved.
How Buyers Can Maximize Affordability in 2026
Strategic buyers are approaching affordability with intention rather than urgency.
Common strategies include:
- Prioritizing location and layout over maximum square footage
- Considering homes with cosmetic update potential rather than major repairs
- Remaining flexible on timing to take advantage of market conditions
- Structuring offers with long-term ownership in mind
Houston tends to reward patience, planning, and discipline.
Houston Housing Market Outlook for 2026
Houston continues to benefit from population growth, a diversified employment base, and steady residential development. Rather than dramatic price swings, the market favors informed buyers who understand affordability at a granular level.
For prepared buyers, affordability in Houston remains achievable.
Final Thoughts: How Much Home Can You Afford in Houston in 2026?
There is no single number that defines affordability. The right purchase price is a function of income, financing structure, lifestyle priorities, and market knowledge. When those align, Houston continues to offer opportunities that many large metros cannot.
The goal is not to stretch financially but to buy with confidence.
Ready to Review Your Numbers?
If you want a realistic, pressure-free discussion about what home affordability looks like for you in Houston, connect with The Moore Real Estate Group. You’ll receive clear guidance and a strategy tailored to your situation.