Rent vs buy in Houston, TX
In Houston, Texas, the typical rent is $1,544 /mo and the typical home is $259,465.
Over 7 years, the difference is $2,243, making it a toss-up.
Using Houston's typical rent and home value, plus 20% down and today's mortgage rate. The break-even point is year 8.
Clearly labeled opinion, with the math shown. Estimates, not quotes. Adjust one number, and the stamp adjusts with it.
- Gap
- $2k after 7 years
- Break-even point
- In year 8 when owning catches up
- Actual cost of owning
- $2,497 each month year 1, against $1,544 rent
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Houston's typical rent and home value are used in the stamp. Your rent, price and number of years can change the result.
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Is it cheaper to rent or buy in Houston?
In 7 years, renting and buying end up within $2,243, meaning small changes determine which option costs less. For the first 7 years, renting costs less. By year 8, owning has caught up.
Renting costs. Owning costs. Net cost by year so far.
Comparing average rent and mortgage payments in Houston
Rent and the mortgage don't show every cost. Here are all monthly expenses in year 1 using Houston's typical price.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $1,544 | All of it, every month |
| Mortgage payment | $1,415 | $1,247 of it is interest in year 1 |
| Property tax | $326 | 1.51% of the value a year |
| Insurance | $178 | Census median for the city |
| Upkeep | $216 | 1% of the value a year |
| Owning, cash out | $2,135 | $168 of it builds equity |
| Lost return on the down payment | $422 | What the cash would earn each year: 8.3% |
| Buying costs, spread out | $108 | 3.5% of the price over 7 years |
| True cost of owning | $2,497 | Cash out, then subtract the equity portion and add both items listed above. |
Houston verdict, explained by the numbers
- Typical home valueZillow ZHVI, September 2026
- $259,465
- Typical rentZillow ZORI, September 2026
- $1,544 /mo
- Down payment20% avoids private mortgage insurance, which the engine does not model
- 20%
- Mortgage rateFreddie Mac Primary Mortgage Market Survey (FRED MORTGAGE30US)
- 7.24%
- Home price growthFHFA house price index, Texas, 1995 to 2025
- 4.7% a year
- Rent growthCPI rent of primary residence, yearly growth 2006 to 2026
- 3.5% a year
- Return on savings60% S&P 500 with dividends and 40% 10-year Treasuries, rebalanced yearly, 1928 to 2025
- 8.3% a year
- Property taxCensus ACS 2020-2024, Houston
- 1.51% of value
- Home insuranceCensus ACS 2020-2024, Houston
- $178 /mo
- MaintenanceFannie Mae, low end of 1% to 4%
- 1% of value a year
- Buying costsFreddie Mac, middle of 2% to 5%
- 3.5% of price
- Selling costsAgent commission plus closing costs
- 6% of price
What would reverse the result in Houston?
Each line shows where Houston's 7-year result changes, while all other details remain the same.
Renting comes out ahead when
- Annual home-price growth stays below 4.8%, and our calculation uses 4.7%, Texas's long-term rate.
- The mortgage rate remains above 7.09%.
- A comparable home rents for less than $1,570 monthly (the typical rent here is $1,544).
- You relocate before year 8.
When buying is ahead
- Home prices rise by more than 4.8% a year.
- You secure a mortgage rate under 7.09% (today's is 7.24%).
- You'd pay more than $1,570 each month to rent this same home.
- You remain 8 years or longer.
How Houston compares with 812 other cities
| Measure | Houston | Median city |
|---|---|---|
| Typical home value | $259,465 | $422,451 |
| Typical rent | $1,544 /mo | $1,837 /mo |
| Price-to-rent ratio | 14.0 (#682 of 813) | 18.5 |
| Home prices, last 10 years | 4.4% a year | 6.2% a year |
| Rents, last 5 years | 1.8% a year | 4% a year |
| Property tax | 1.51% | 0.87% |
| Households that rent | 58% | 42% |
Sources: Zillow ZHVI and ZORI, Census ACS 2020-2024.
More cities across Texas
- Renting wins in Arlington, TX by a total of $34k.
- Renting wins in Garland, TX by a total of $12k.