Quick answer
At current rates, renting wins over the full 30-year horizon in Houston. Monthly ownership cost $2,644 (vs $$1,620/mo rent) plus TX's 1.90% property tax make the math tough.
Rent vs Buy · TX
Rent vs Buy in Houston (2026)
Real math using TX's 1.90% property tax rate, $3,800/year average insurance, and a 6.8% 30-year fixed mortgage. Accounts for opportunity cost — what the down payment would earn invested at 7%.
Last updated: April 23, 2026
Verdict at current rates
Renting wins (30-year horizon)
In Houston at TX's tax rates and current 6.8% mortgages, keeping the down payment invested at 7% beats homeownership even after 30 years. The standard advice "buy to build equity" doesn't apply here at today's price-to-rent ratio.
Monthly Cost Breakdown
Buying
$2,644/mo
Mortgage P&I
$244,000 loan, 30yr @ 6.8%
$1,591
Property tax
1.90% of assessed (TX avg)
$483
Homeowners insurance
$3,800/yr TX avg
$317
Maintenance
1%/yr of home value
$254
Cash at close: ~$68,625 ($20% down + fees)
Renting
$1,620/mo
2BR rent (median)
Houston market rate
$1,620
Renters insurance
~$15/mo typical
$15
Down payment invested
$61,000 growing at 7%/yr
(opportunity cost)
Monthly gap: $1,024 cheaper than buying. Renter invests that difference.
Year-by-Year Net Position
"Buy wins by" = what you'd clear selling the home minus what the renter has in investments. Positive = buy ahead.
| Year | Home value | Buyer equity (net) | Renter portfolio (net) | Buy wins by |
|---|---|---|---|---|
| Year 5 | $353,579 | $-120,829 | +$50,791 | $-171,620 |
| Year 10 | $409,894 | $-199,567 | +$55,000 | $-254,567 |
| Year 15 | $475,180 | $-265,482 | +$82,379 | $-347,862 |
| Year 30 | $740,315 | $-310,596 | +$461,783 | $-772,379 |
Assumptions
Every rent-vs-buy calculator depends on the assumptions. Here are ours — all transparent, none cherry-picked to bias the answer.
This is a rule-of-thumb calculator. Real decisions involve your specific tax bracket, any HOA, mortgage points, closing-cost negotiations, and exact loan terms.
Frequently Asked Questions
Is it better to rent or buy in Houston?
In Houston at current mortgage rates (6.8%), renting and investing the down payment beats buying for the full 30-year horizon. Median monthly ownership costs ($2,644) well exceed median 2BR rent ($1,620), and TX's 1.90% property tax makes the math especially tough.
What's the monthly cost of owning a home in Houston?
On a median $305K home with 20% down at 6.8% fixed rate: mortgage P&I $1,591, property tax $483 (1.90% of assessed value), homeowners insurance $317 (TX average $3,800/year), and maintenance $254 (1% of home value/year). Total: $2,644/month.
How much down payment do I need to buy in Houston?
20% down on a median Houston home ($305K) is $61,000. Plus closing costs of roughly 2.5% ($7,625). Total cash-to-close: about $68,625. FHA loans allow 3.5% down ($10,675) but require mortgage insurance that adds ~$119/month.
What's the 10-year cost of renting vs buying in Houston?
Over 10 years in Houston: renters pay $222,858 in cumulative rent but have $277,858 invested (assuming 7% return on the $61,000 down payment + monthly savings). Buyers have paid $376,481 in total ownership costs and hold $201,508 in home equity. Net: renting is ahead by $254,567 at year 10.