How much does it really cost to live in Houston?
Start with the home payment. Then add the costs that do not appear in the advertised price.
These two purchase scenarios use 20% down and a 30-year fixed mortgage at 7.27%. Rate source: Mortgage News Daily, October 30, 2026. Calculations dated November 1, 2026. This is a budgeting illustration, not a loan offer or a current rate quote.
$325,000 home: monthly ownership budget
Down payment: $65,000. Loan: $260,000.
| Item | Monthly amount |
|---|---|
| Principal & interest | $1,777.19 |
| Property tax scenario 2.0% | $541.67 |
| Property tax scenario 2.5% | $677.08 |
| Property tax scenario 3.0% | $812.50 |
| Homeowners insurance | Use a property-specific quote ÷ 12 |
| Flood insurance | Use a separate quote ÷ 12 |
| HOA | Annual dues ÷ 12, plus applicable assessments |
| Utilities | Enter electricity, water, gas, trash and internet estimates |
| Maintenance reserve | Choose a reserve based on condition and inspection |
Principal & interest only, taxes/insurance/HOA extra. At the 2.5% tax scenario, principal, interest and estimated taxes total $2,454.27 monthly. This is a partial subtotal; add insurance, HOA, utilities and maintenance.
$450,000 home: monthly ownership budget
Down payment: $90,000. Loan: $360,000.
| Item | Monthly amount |
|---|---|
| Principal & interest | $2,460.72 |
| Property tax scenario 2.0% | $750.00 |
| Property tax scenario 2.5% | $937.50 |
| Property tax scenario 3.0% | $1,125.00 |
| Homeowners insurance | Use a property-specific quote ÷ 12 |
| Flood insurance | Use a separate quote ÷ 12 |
| HOA | Annual dues ÷ 12, plus applicable assessments |
| Utilities | Enter electricity, water, gas, trash and internet estimates |
| Maintenance reserve | Choose a reserve based on condition and inspection |
Principal & interest only, taxes/insurance/HOA extra. At the 2.5% tax scenario, principal, interest and estimated taxes total $3,398.22 monthly. This is a partial subtotal; add insurance, HOA, utilities and maintenance.
Use actual quotes for the missing costs
Insurance, HOA and utilities are not supplied here as invented averages. Obtain the home and flood quotes, subdivision documents and utility estimates for the address. Add these monthly amounts to the subtotal above. Household spending also includes transportation, food, healthcare, childcare and other personal expenses; this page does not claim to estimate those costs.
Why taxes vary
The scenarios use purchase price as an illustrative taxable value before exemptions. They are not verified rates for a neighborhood. Actual bills depend on taxable values, taxing jurisdictions, exemptions and the tax year. A MUD may provide utilities and levy a tax; check whether it is already included in the combined rate.
Homestead exemption in plain English
A qualifying principal residence may receive a reduction in taxable value. Eligibility, application and the effect on each taxing unit must be checked with the appraisal district. Do not build your budget around the seller’s exemption or prior tax bill.
Cash at closing is separate
CFPB’s general closing-cost guide gives 2–5% of purchase price, excluding the down payment. That is $6,500–$16,250 on $325,000 and $9,000–$22,500 on $450,000. These are planning ranges, not lender quotes. Review the Loan Estimate and applicable Closing Disclosure.
Sources checked November 1, 2026: CFPB: closing costs; CFPB: disclosure timing; Texas Comptroller; Texas Department of Insurance; TCEQ.