Buying in Houston
The listing price is half the story.
Texas has no state income tax, and property tax is how that gets funded. In newer master-planned communities the combined rate routinely passes 3%, and the MUD assessment on top of it is the line most buyers have never heard of until closing.
Costs nothing. No obligation — not today, not tomorrow, not ever
Two homes a mile apart can differ by $3,500 a year before you have moved in.
What actually leaves your account every month
Buyers shop on price and finance on payment, and the gap between those two things is where Houston surprises people. Four lines sit on top of your mortgage, and three of them vary by address rather than by neighbourhood.
- Property tax, roughly 2.0–2.4%. City, county and school district combined. The school district portion is usually the largest piece.
- MUD, adding roughly 0.3–1.0%. A Municipal Utility District issued bonds to build the water, sewer and drainage your community needed. You repay them. Rates fall over time as bonds retire, which is why an established neighbourhood often carries a lower combined rate than a brand-new phase.
- Insurance, including wind and flood. Gulf Coast premiums have risen sharply. What the seller pays today may bear no resemblance to your quote.
- HOA dues, roughly $90–130 a month in most master-planned communities, plus a one-time capital contribution at closing.
Why the spread matters more than the sticker
On a $500,000 home, the difference between a 2.5% and a 3.2% combined rate is about $3,500 a year, or nearly $300 a month.
Annual difference between a low-rate and high-rate community on the same purchase price.
Combined rate in many newer master-planned communities once MUD is counted.
Not neighbourhood, not subdivision. Rates are set at the parcel level and must be checked there.
That spread is frequently larger than the price difference that made someone choose one house over another. We pull the actual figures from the Fort Bend or Harris appraisal district before you write an offer, because the builder's estimate sheet is a projection and the assessed bill is not.
Run the numbers
Start with a payment, not a price
Work out the loan side here, then add the tax rate and MUD for the specific address. That combined figure is your real budget, and it is usually lower than the one you started with.
Bring us an address and we will send back the full picture, including flood history and what the insurance is likely to run.
A $15,000 price cut feels like the win. A half point on the tax rate costs you more, every year you own it.
Send us the address
We will come back with the tax rate, the MUD, the HOA, the flood history and what it all adds up to monthly. Whether or not you ever work with us.
Everything else about buying here
The Realty Team — brokered by Walzel Properties, LLC. MLS data via the Houston Association of REALTORS®. Tax, school and flood information is subject to change and should be independently verified. See our Information About Brokerage Services notice.