How much house can I afford on $40,000 in Texas?
About $134,000 with 20% down ($108,000 with an FHA loan), using Texas's 1.32% property tax rate.
That is $162,771 less than the typical Texas home ($296,424), so on $40,000 you'd look at cheaper areas or a smaller home. The payment of $933 covers $719 principal and interest, $147 property tax and $67 insurance.
Counties in Texas you can afford on $40,000
41 of 243 counties have a typical home value at or below $134,000. The 25 priciest of them:
| County | Typical home | 1-yr change | Tax rate |
|---|---|---|---|
| Dimmit County | $133,562 | +4.7% | 1.43% |
| Hansford County | $133,079 | +6.6% | 1.81% |
| Ochiltree County | $130,055 | +13.1% | 1.42% |
| Donley County | $126,273 | +12.2% | 1.16% |
| Zapata County | $121,665 | -5.8% | 0.95% |
| Garza County | $121,629 | +2.0% | 1.57% |
| Terry County | $121,439 | -1.4% | 1.69% |
| La Salle County | $120,225 | -8.5% | 1.47% |
| Nolan County | $120,201 | +7.7% | 1.53% |
| Upton County | $120,180 | +6.4% | 1.08% |
| Hale County | $119,100 | -3.4% | 1.31% |
| Motley County | $118,731 | +9.1% | 1.03% |
| Hutchinson County | $118,561 | +2.1% | 1.35% |
| Kinney County | $118,224 | +0.2% | 1.41% |
| Lipscomb County | $118,196 | +2.7% | 1.41% |
| Crockett County | $114,991 | -6.2% | 1.32% |
| Dawson County | $111,742 | +6.0% | 1.62% |
| Terrell County | $110,144 | -10.8% | 0.92% |
| Fisher County | $109,250 | +9.6% | 1.73% |
| Wilbarger County | $107,745 | +3.0% | 1.6% |
| Lamb County | $106,296 | -5.9% | 1.12% |
| Gray County | $105,191 | +1.9% | 1.37% |
| Haskell County | $104,184 | +8.2% | 1.16% |
| Swisher County | $101,032 | +3.9% | 1.72% |
| Dickens County | $99,808 | +0.3% | 1.44% |
Affordable metro areas
Assumes a 30-year fixed loan at 7.11%, property tax of 1.32% of the home value a year, homeowners insurance of 0.6% a year, PMI of 0.5% of the loan a year when the down payment is under 20%, and FHA mortgage insurance of 0.55% a year plus a 1.75% upfront premium added to the loan. Your rate, taxes and insurance will differ.
Other salaries in Texas
Frequently asked questions
How much house can I afford on $40,000 in Texas?
About $134,000 with 20% down at 7.11%, keeping the payment (with Texas's 1.32% property tax and insurance) under $933 a month.
Is $40,000 enough to buy a house in Texas?
Not the typical home: the typical Texas home is worth $296,424 (Zillow, September 2026) and $40,000 supports about $134,000. 41 of 243 counties are within budget.