How much home can I afford in Austin on a $100,000 salary?

On a $100,000 gross annual income in Austin, most lenders will qualify you for a home in the $350,000–$400,000 range using conventional lending standards — assuming a 10–20% down payment, minimal existing debt, and current rates around 6.5–7%. Total housing payment (mortgage, property taxes, insurance) should stay under 28–32% of gross monthly income, which on $100K is roughly $2,333–$2,667/month. At $375,000 with 10% down in a 2.2% tax rate area, your all-in payment is approximately $2,500–$2,700/month.

How much home can I afford in Austin on a $150,000 salary?

A $150,000 annual income typically qualifies for $500,000–$560,000 in Austin, assuming standard debt ratios and a conventional loan with 10–20% down. Monthly gross income of $12,500 × 28% front-end ratio = $3,500 available for housing. At $525,000 with 15% down and 6.75% rate, the principal and interest is approximately $3,044/month, plus taxes and insurance gets you to roughly $3,800–$4,000 total — slightly above the strict 28% threshold but within the 32–36% DTI most lenders accept.

What does a $400,000 home actually cost per month in Austin?

On a $400,000 Austin home with 10% down ($40,000): 6.75% rate on $360,000 = ~$2,335/month principal and interest. Property taxes at 2.2% effective rate = $733/month. Homeowner's insurance = roughly $150–$200/month. HOA (if applicable) = $50–$150/month. Total all-in payment: approximately $3,268–$3,418/month. The property tax component is what surprises buyers moving from states with lower rates.

Why are Austin property taxes so high compared to other cities?

Texas has no state income tax. Cities and school districts fund their operations primarily through property taxes instead. Travis County effective rates run 1.8–2.2%. Williamson County runs 2.0–2.5%. Add a MUD district in the outer suburbs and rates can reach 2.8–3.0%. On a $500,000 home, that is $9,000–$15,000 per year in property taxes. The homestead exemption reduces your school district taxes by $100,000 of assessed value and caps annual assessment increases at 10%, which helps — but the base rate is still higher than most comparable metros.

Is a dual income required to buy a home in Austin in 2026?

Not necessarily, but a single $72,000–$85,000 income limits you to roughly $250,000–$300,000 in Austin, which means the outer suburbs (Pflugerville, Manor, Kyle, Buda) where homes are available in that range. Dual incomes of $80,000–$100,000 each open up Cedar Park, Round Rock, and many Georgetown communities at $450,000–$550,000. The Austin metro's median household income is approximately $92,000, which maps to a home purchase in the $325,000–$375,000 range — achievable in Pflugerville and Southeast Austin but challenging in central Austin or Cedar Park.

How Much Home Can You Afford in Austin? A Salary-by-Salary Guide

The most common question I get from people considering buying in Austin is: “Given what I earn, can I actually afford to buy here?” The honest answer depends on your salary, your down payment, the neighborhood you are targeting, and — critically — whether you have fully priced in Austin’s property tax reality.

I’m William Zhang, an Austin real estate agent with eXp Realty (TREC #811948). The question of how much home can I afford in Austin comes up in every initial buyer consultation I have. What buyers get wrong most often is calculating just the mortgage payment without modeling the full cost of homeownership in Texas — where property taxes are a larger monthly line item than most people from other states expect.

Here is a practical income-to-home-price guide for 2026, with the real numbers.

The Starting Framework: How Lenders Calculate Your Limit

Most conventional lenders use two debt ratios to determine your maximum loan:

Front-end ratio (housing expense ratio): Monthly housing costs (principal, interest, property taxes, homeowner’s insurance, and HOA if applicable) should not exceed 28% of gross monthly income.

Back-end ratio (total DTI): All monthly debt payments (housing + car loans + student loans + credit cards) should not exceed 43–45% of gross monthly income.

These are not absolute rules — some loan programs allow higher ratios, and FHA loans can go to 50% back-end DTI in some cases. But 28/43 is the conservative baseline that gives you a safe payment you can manage through an economic rough patch.

One warning: lenders will frequently approve you for more than you should spend. Getting approved for $500,000 does not mean you should buy a $500,000 home if that puts you at the limit of your budget with no cushion for repairs, job changes, or life events.

$72,000 Salary: The Entry-Level Buyer in Austin

On $72,000 gross annual income:

Gross monthly income: $6,000
28% front-end limit: $1,680/month for total housing costs

At current Austin property tax rates of 2.0–2.5% and a 6.75% mortgage rate, here is what $1,680/month total housing buys you:

Property taxes + insurance on a $275,000 home (2.2%): roughly $544/month
That leaves $1,136 for principal and interest
$1,136/month on a 30-year loan at 6.75% supports approximately $175,000 in loan balance
With 5% down ($13,750) on a $275,000 home, loan is $261,250 — payment would be ~$1,694, still close

The realistic ceiling at $72,000 salary: $250,000–$280,000. That is not downtown Austin or Cedar Park. That is outer Pflugerville (78653), parts of Manor (78653), Kyle (78640), and Buda (78610). These areas have 2,000+ square foot homes at that price point. The trade-off is commute time and, in some cases, higher MUD tax rates that push toward the limit.

FHA option: If you only have 3.5% down, an FHA loan lets you buy with less cash out of pocket but adds mortgage insurance premium (MIP) of roughly 0.85% annually — about $200/month on a $275,000 loan. That eats into your budget and pushes your ceiling down slightly.

$85,000 Salary: Getting Into the Austin Market Properly

On $85,000 gross annual income:

Gross monthly income: $7,083
28% front-end limit: $1,983/month

At $1,983/month total housing, you can support a home in the $330,000–$360,000 range with a standard down payment. That opens up significantly more of the metro:

Pflugerville (78660): Strong inventory in $310,000–$380,000 range, Round Rock ISD and Pflugerville ISD, 25–35 minute commute to North Austin
Southeast Austin (78744, 78747): Austin ISD and Del Valle ISD options, closer-in locations, though school ratings vary by specific school
Kyle (78640) and Buda (78610): Hays Consolidated ISD, suburban feel, new construction available with builder incentives

The $85,000 single-income buyer has real choices. The biggest limitation is the down payment — accumulating $20,000–$35,000 for a down payment plus $8,000–$12,000 in closing costs is the primary obstacle, not the monthly payment itself.

First-time buyer programs worth knowing: Texas Department of Housing and Community Affairs (TDHCA) runs down payment assistance programs for qualified buyers under certain income limits. The My First Texas Home program offers 3% down payment assistance as a soft second lien. Income limits and home price limits apply — worth checking if you are near the qualifying threshold.

$100,000 Salary: The Austin Metro Sweet Spot

At $100,000 annual income, your front-end limit is $2,333/month. This is where the Austin market opens up meaningfully:

Gross monthly income: $8,333
28% housing limit: $2,333/month

At $2,333/month total housing, with property taxes at 2.2% and 6.75% rate:

On a $375,000 home with 10% down, P&I on $337,500 = $2,188/month
Property taxes + insurance: ~$742/month
Total: ~$2,930/month — this exceeds the strict 28%, but falls within the 36–38% DTI that conventional loans allow if total debt is low

More practically: a $100,000 earner with minimal other debt (no car loans, low student loan payments) can qualify for and reasonably afford a home in the $375,000–$410,000 range. That is the current Austin metro median.

Where $375,000–$410,000 takes you in 2026:

Round Rock (78664, 78681): 3-bedroom resale in Round Rock ISD, 1,500–2,000 sq ft
Cedar Park (78613): Leander ISD access, similar size range, possibly slightly older homes
Pflugerville (78660): Larger square footage for the money — 2,200–2,600 sq ft is achievable in this range

This is the income level where the choice between renting and buying becomes genuinely close. Austin’s median rent has dropped to $2,000 for the metro. A $375,000 purchase with 10% down has an all-in payment around $2,900–$3,100/month. The rent-vs-buy gap is real, but the equity accumulation and tax benefits start to favor buying at the 5–7 year mark.

$130,000 Salary: Dual-Income Couple or High Earner

At $130,000 annual income (or a dual income of $65,000 each):

Gross monthly income: $10,833
28% housing limit: $3,033/month

At $3,033/month available for housing, you can support a home in the $480,000–$520,000 range. That is a different tier of the Austin market:

Cedar Park (78613): 2,400–3,000 sq ft in Leander ISD, newer construction from 2010s
Round Rock (78665): Larger homes, good Round Rock ISD schools, some new construction available
Newer Pflugerville communities: Significantly more square footage than Cedar Park at comparable price
Western Austin near the 78730/78733 ZIP codes: Still Austin proper, more land, but typically older construction

The typical dual-income couple at $65,000 + $65,000 buying in this range is the most common buyer type I work with. The math is workable when both incomes are stable, but important to model on a single income — what happens to the payment if one partner takes leave, changes jobs, or the income changes?

$150,000+ Salary: The Cedar Park / Georgetown / Lakeway Tier

At $150,000 gross income:

Monthly gross: $12,500
28% housing limit: $3,500/month

At $3,500/month, you can support a home in the $500,000–$560,000 range. This is the entry point for:

Lakeway (78734): Lake Travis ISD, hill country views, newer communities, strong school ratings
Georgetown (78628): Wolf Ranch, Sun City area, larger lots, slower pace
Four Points / 78730 in West Austin: Austin ISD optional, some Lake Travis ISD access
Higher-end Cedar Park: The communities within Leander ISD with newer construction

At $150,000 salary or higher, the bigger limiting factor is usually the down payment, not the monthly qualifying ratio. A $525,000 home with 20% down requires $105,000 cash at closing plus closing costs. Buyers at this income level often need 2–4 years of savings to accumulate that down payment — which is a legitimate reason to rent while saving, especially given Austin’s current rental market with median rent at $2,000.

The Property Tax Reality That Changes Every Calculation

Every number above needs an asterisk: Austin-area property taxes are 1.8–2.8% of assessed value. That is higher than California (1.1–1.3% effective), Colorado (0.5–0.7%), and most other states people are moving from.

Practical impact:

Home Price	Tax Rate	Annual Taxes	Monthly Tax Cost
$300,000	2.0%	$6,000	$500
$400,000	2.2%	$8,800	$733
$500,000	2.3%	$11,500	$958
$600,000	2.5%	$15,000	$1,250

Notice how the property tax alone on a $600,000 home is $1,250/month. That is before you pay a dollar toward principal or interest.

Texas has no state income tax, which offsets some of this for higher earners — but the tradeoff is not always dollar-for-dollar depending on your income level and prior state of residence.

Homestead exemption: File it within your first year of ownership. You are entitled to a $100,000 school district exemption on your primary residence, which reduces the taxable value. On a $400,000 home at 1.2% school district rate, that is a $1,200/year reduction. You also get the 10% annual cap on assessment increases — that cap is one of the most valuable financial protections a Texas homeowner has over time.

Senior exemption (65+): Texas homeowners 65 and older get an additional exemption and — crucially — their school district taxes freeze when they turn 65. That is worth modeling if you are buying a home you plan to retire in.

The Honest Bottom Line by Income

$72,000: Outer suburbs — Pflugerville, Kyle, Buda, Manor. Real homes available, longer commutes.
$85,000: Pflugerville properly, Southeast Austin, some of Round Rock’s lower-priced neighborhoods.
$100,000: Round Rock, Cedar Park, Western Pflugerville. Metro median home is achievable.
$130,000 (or dual income ~$65K each): Cedar Park, Round Rock mid-tier, newer Pflugerville communities.
$150,000+: Cedar Park premium, Lakeway, Georgetown, Four Points, western Austin submarkets.

These ranges assume conventional financing with 10–20% down and current rates. They shift meaningfully if you have significant other debt (student loans, car payments) that competes for your DTI capacity.

Before you make an offer, run the full payment calculator — P&I plus property taxes plus insurance plus any HOA — and compare it to your take-home income, not your gross. What your lender approves is a starting point, not a recommendation.

Browse the neighborhood guides for current price ranges and school district details in Cedar Park, Round Rock, Pflugerville, Lakeway, and Austin proper. Active Austin listings are at lifeinaustintx.com. When you are ready to talk through what your budget actually buys in specific communities, reach out directly.