What income do you need to buy a $400,000 house in Texas?
The short answer
A $400,000 house in Texas costs about $2,691 a month to own with 20% down, which takes a household income of roughly $115,331 a year to keep housing inside the 28% front-end ratio lenders use. That total is $2,054 of principal and interest, $467 of property tax and $170 of homeowners insurance.
Texas ranks 48th of 51 on what a $400,000 house costs to carry: $493 a month more than Hawaii at the bottom, $123 a month less than New Jersey at the top. The loan is identical in all three.
- Principal & interest
- $2,054
- Property tax
- $467
- Insurance
- $170
- Total monthly
- $2,691
- Income needed
- $115,331
What $400,000 buys in Texas
$400,000 is above the Texas median of $341,800, at about 117% of it. That puts it in the state's stronger metros rather than its typical market.
| Metro | Price level | Typical home | $400,000 vs typical |
|---|---|---|---|
| Austin-Round Rock, TX | 100.8 | $354,824 | +13% — above typical |
| Dallas-Fort Worth-Arlington, TX | 100.6 | $354,120 | +13% — above typical |
| Houston-Pasadena-The Woodlands, TX | 98.8 | $347,784 | +15% — above typical |
| San Antonio-New Braunfels, TX | 95.7 | $336,872 | +19% — above typical |
Price level is the regional price parity for the metro, indexed so that 100 is the national average. Typical home is this state's median scaled by that index — an approximation, not a market survey.
If you put down less than 20%
Property tax and insurance do not move with the down payment; the loan and the mortgage insurance do. At $400,000 in Texas the tax and insurance floor is $637 a month before any mortgage payment at all.
| Down | Cash at closing | Loan | P&I | PMI | Total/mo | Income needed |
|---|---|---|---|---|---|---|
| 3.5% down | $14,000 | $386,000 | $2,478 | $306 | $3,420 | $146,586 |
| 5% down | $20,000 | $380,000 | $2,439 | $222 | $3,298 | $141,339 |
| 10% down | $40,000 | $360,000 | $2,311 | $138 | $3,086 | $132,250 |
| 20% down | $80,000 | $320,000 | $2,054 | — | $2,691 | $115,331 |
The same $400,000 house in other states
Identical price, identical loan, identical rate. Only the property tax rate and the insurance market change — and they change the income requirement by $21,087 a year across this set.
| State | Tax/mo | Insurance/mo | Total/mo | Income needed |
|---|---|---|---|---|
| New Jersey | $627 | $133 | $2,814 | $120,596 |
| Illinois | $627 | $116 | $2,797 | $119,886 |
| Texas | $467 | $170 | $2,691 | $115,331 |
| New York | $433 | $114 | $2,602 | $111,500 |
| Pennsylvania | $420 | $122 | $2,597 | $111,285 |
| Florida | $260 | $241 | $2,556 | $109,533 |
| Maryland | $307 | $102 | $2,463 | $105,541 |
| Georgia | $263 | $124 | $2,441 | $104,631 |
| California | $233 | $91 | $2,379 | $101,958 |
| Colorado | $167 | $101 | $2,322 | $99,509 |
Common questions
How much do I need to make to buy a $400,000 house in Texas?
About $115,331 a year at the 28% front-end ratio, with 20% down and a 6.65% thirty-year fixed. That covers a $2,691 monthly payment: $2,054 principal and interest, $467 property tax and $170 insurance. Lenders who stretch to a 31% ratio would accept roughly $104,170.
What is the monthly payment on a $400,000 house in Texas?
Roughly $2,691 a month with 20% down and no HOA. With 5% down the payment rises to about $3,298, because the loan is larger and PMI adds around $222 until the balance reaches 80% of value.
How much are property taxes on a $400,000 house in Texas?
About $467 a month, or $5,600 a year, at the 1.40% effective rate this state averages. County rates vary around that figure, and assessed value here cannot rise more than 10% a year, so a long-held home is taxed on far less than it would sell for.
How much cash do I need up front for a $400,000 house in Texas?
$80,000 for a 20% down payment, or $20,000 at 5% down. Closing costs typically add 2–5% of the price on top, and lenders will want a couple of months of the $2,691 payment in reserves.
This is a price point, not a house. Put in an actual Texas address, the date it closed and the price paid, and the calculator works out that home's payment, its mortgage-insurance dates and the equity behind it.