Side-by-side comparison of home prices, mortgage payments, and housing costs between Dallas and Houston, Texas. Using Texas's 1.8% property tax rate and $3,800/year insurance. Updated for 2026.
Houston edges out Dallas in affordability, saving you roughly $302/month on total housing costs. Both cities are in Texas, so property tax rates and insurance costs are the same — the difference comes down to home prices and what you get for your money in each market.
Estimated PITI payments assuming 10% down, 6.5% rate, 30-year fixed mortgage with PMI. Uses Texas's 1.8% property tax rate.
Buying in Houston saves you approximately $302/month ($3,624/year) compared to Dallas, based on median home prices with identical loan terms.
Houston is the better choice for first-time buyers, with a median price of $325K versus $365K in Dallas. That's $40K less to save for a down payment. You'd need roughly $11K for an FHA 3.5% down payment in Houston, compared to $13K in Dallas. Texas offers the TDHCA My First Texas Home program (Up to 5% DPA grant) which applies in both cities.
Houston has the better price-to-rent ratio at 18.7x versus 19.3x in Dallas. A lower ratio generally signals better rental income relative to purchase price. Average rent in Houston is $1,450/month on a $325K median home, making it a stronger candidate for buy-and-rent investors.
Houston (pop. 2,304,580) offers more amenities, schools, and services typical of a larger city, while Dallas (pop. 1,304,379) may offer a quieter, more community-oriented lifestyle. Houston offers both more options and lower housing costs, making it attractive for families who want urban amenities without a premium price.