If you make $70,000 a year in Texas, you’re probably asking the same thing most buyers ask right now:
“What home price actually fits my budget—once I include mortgage, property taxes, insurance, and maybe PMI?”
This draft gives you a realistic, numbers-first answer using today’s mortgage-rate data and Texas-specific cost factors, plus a few “hidden” budget traps that catch first-time buyers.
The baseline math: $70k income → your monthly housing budget
- $70,000 / year = $5,833 gross per month
Many lenders still use affordability guidelines like the 28/36 rule (housing ≤ 28% of gross income, total debt ≤ 36%).
And for conventional loans, underwriting can allow higher DTIs depending on the file (DU may allow up to 50% in some cases).
To keep this practical, here are three budget lanes people actually use:
3 monthly payment targets (PITI-ish)
- Conservative (28%): ~$1,633/month
- Comfortable (30%): ~$1,750/month
- Stretch (35%): ~$2,042/month
(These targets assume you don’t have heavy car payments, student loans, or big credit card balances. If you do, your “max house” drops fast.)
The “Texas reality”: taxes + insurance matter more than people expect
Two Texas costs tend to shock buyers coming from other states:
1) Property taxes
Texas property taxes vary by county/city/school district, but Texas is known for being high. For statewide context, Tax Foundation reports Texas property taxes as a percent of housing value (effective rate) around the ~1.3% range in recent data.
Your actual rate could be higher depending on where you buy.
2) Homeowners insurance
Texas homeowners insurance can be expensive (hail, wind, storms). The Texas Department of Insurance reports an average annual premium of $3,291 (2024).
3) PMI (if you put <20% down)
PMI commonly ranges roughly 0.46%–1.50% of the original loan amount per year, depending on credit score and down payment.
For calculations below, I’ll use a middle-of-the-road assumption (~0.8%/yr) just to keep the math realistic.
Mortgage rate used in this post (so you can sanity-check the numbers)
For a rate benchmark, Freddie Mac’s weekly survey shows the 30-year fixed mortgage averaged 6.11% (Feb 5, 2026).
I’ll use 6.11% in the examples below.
Real affordability results: max home price on $70k in Texas
These “max prices” are based on P&I + property tax + homeowners insurance + (PMI if needed) using:
- 6.11% 30-year fixed
- ~1.36%/yr effective property tax assumption (statewide ballpark)
- $3,291/yr homeowners insurance
- ~0.8%/yr PMI when down payment is 5% (mid-range assumption)
A) If you can put 20% down (no PMI)
- ~$1,633/mo budget (28%) → ~$227,000 home
- ~$1,750/mo budget (30%) → ~$247,000 home
- ~$2,042/mo budget (35%) → ~$295,000 home
B) If you put 5% down (with PMI)
- ~$1,633/mo budget (28%) → ~$180,000 home
- ~$1,750/mo budget (30%) → ~$196,000 home
- ~$2,042/mo budget (35%) → ~$235,000 home
Quick takeaway: On $70k in Texas, the difference between 20% down vs 5% down isn’t just the down payment—it’s the PMI + bigger loan, which can cut your price range meaningfully.
“Show me the payment”: two realistic monthly breakdowns
These are example breakdowns (rounded). Your escrow/insurance will vary, but this gives you a clean reference point.
Example 1) $250,000 home with 20% down
- Loan: $200,000
- Principal & Interest: ~$1,213
- Property tax: ~$283
- Homeowners insurance: ~$274
- PMI: $0
- Estimated total: ~$1,771/month
This lands very close to the 30% guideline for $70k.
Example 2) $200,000 home with 5% down
- Loan: $190,000
- Principal & Interest: ~$1,153
- Property tax: ~$227
- Homeowners insurance: ~$274
- PMI (est.): ~$127
- Estimated total: ~$1,780/month
Notice the “surprise”: a cheaper home can still land near the same monthly payment when you use low down payment + PMI.
The 3 budget traps that decide what you really can afford
1) Your car payment is basically a “home price reducer”
A $600/month car note can wipe out a big chunk of what a lender will approve under total DTI rules.
2) Texas taxes aren’t one number
County + ISD differences matter. Two homes with the same price can have very different monthly payments depending on the tax area.
3) Insurance can swing wildly by ZIP code
The statewide average is useful as a baseline, but your quote might be thousands higher (or lower).
A simple rule for buyers who want to sleep at night
If you want a payment that still feels okay after groceries, gas, childcare, and life:
- Aim for the 28%–30% lane unless your other debt is very low.
- Treat 35% as the “only if everything else is clean” lane (no big debt, strong emergency fund).
Internal link ideas
- Silicon Valley Commercial Real Estate 2024 Trends and 2025
- How Are Property Taxes Calculated?
- Move Into Debt: Why You Must Live in a Wealthy Neighborhood
- Best Cities to Buy a Home in 2025: Affordable and Growing Markets
Sources (external links)
- Freddie Mac weekly mortgage rate survey (PMMS)
- Texas Department of Insurance: Texas homeowners insurance market overview
- Tax Foundation: Property taxes by state/county dataset
- Bankrate: 28/36 rule explanation
- Fannie Mae Selling Guide: DTI ratio guidance
- NerdWallet: PMI cost range
