Austin: $518,000; Colleyville: $895,000; University Park: $2.4 million.
These aren’t prices of single high-priced homes found on a real estate site. These are average home prices for these cities.
Much of Texas is no longer affordable. In fact, the state is becoming downright expensive, even for high earners. That’s why we wanted to dig into data to find the most affordable housing markets in The Lone Star State.
You won’t believe how affordable homes are in many areas.
Affordable Texas Cities and Typical Home Prices
| Ranking | City | Average Home Cost |
|---|---|---|
| 1 | Plainview | $118,516 |
| 2 | Port Arthur | $121,954 |
| 3 | Alice | $131,960 |
| 4 | Rio Grande City | $132,459 |
| 5 | Big Spring | $133,539 |
| 6 | Mercedes | $137,171 |
| 7 | Kingsville | $144,600 |
| 8 | Donna | $147,941 |
| 9 | San Benito | $154,833 |
| 10 | Beeville | $156,124 |
1. Plainview - $118,516
Situated in the Texas panhandle, we find Plainview, the most affordable city on our list, with a population of just over 20,000. The town’s economy runs on agriculture: not only growing wheat, cotton, and vegetables, but also manufacturing farming equipment, says Britannica. At current home prices, buyers can enjoy estimated monthly payments of just $1,025.
2. Port Arthur - $121,954
The “Cajun Capital of Texas” is more than just low home prices. From parks along the Gulf of America, to botanical gardens, to, you guessed it, Cajun food, this town has something for everyone. And at an estimated payment of $1,054 per month, homeowners will have plenty of funds left over to enjoy the surroundings.
3. Alice - $131,960
Less than an hour west of Corpus Christi, this smaller town offers home prices about half of those in the larger metro. This town of just over 17,000 is known as “Hub City” for its central location in south Texas, according to the official city website. And at an estimated mortgage payment of just $1,141 per month, you’re likely to find an affordable home here.
4. Rio Grande City - $132,459
As you might guess – even if you’re not a Texas native – Rio Grande City is located on the Mexico border. The city offers a port of entry, a privately-owned bridge that provides a “faster and more efficient commercial crossing” between the U.S. and Mexico, according to the company’s website. The bridge offers employment opportunities, bolstering the local economy, where the average home has an estimated monthly payment of $1,145.
5. Big Spring - $133,539
You can visit the spring for which the city is named and also the municipal auditorium, pictured above, a venue that has hosted the likes of Bing Crosby, Hank Williams, Jr., Elvis Presley, Wayne Newton, and others. But the town is more than outdoor recreation and an entertainment venue. Major employers include the Department of Veterans Affairs, Delek US, and Walmart. Homebuyers looking for lower home prices, a low cost of living, and a great place to live should consider Big Spring and its estimated monthly housing cost of $1,154.
6. Mercedes - $137,171
Located just over an hour from South Padre Island, Mercedes, known as “The Queen City of the Valley,” boasts a population of slightly above 16,000. Though affordable, with estimated monthly payments of just $1,186, Mercedes offers a high standard of living, featuring shopping, authentic Mexican-style restaurants, golf, and even a drive-in movie theatre.
7. Kingsville - $144,600
This small town on the southern tip of Texas offers affordable living with an estimated payment of $1,250 per month. The town hosts the Naval Air Station Kingsville, one of only two locations for Navy jet aviation training. It trains 50% of all Navy and Marine Corps tactical jet pilots each year.
8. Donna - $147,941
Donna, located in the Rio Grande Valley, has a population of just under 17,000, offering a true small-town experience and affordable housing options. Enjoy the outdoors? This area is known for some of the best birding in the United States, with nearby natural areas including the Santa Ana National Wildlife Refuse and the Lower Rio Grande Valley National Wildlife Refuse. Estimated monthly housing costs in Donna total just $1,279.
9. San Benito - $154,833
San Benito is one of the most southern towns in Texas, just 30 minutes from the extreme southern tip of the state. It offers robust employment opportunities in the automotive and aerospace industries while having a cost of living 18% lower than the national average. The average home here comes with an estimated payment of $1,339.
10. Beeville - $156,124
Sure, home prices are low in Beeville, but what’s more impressive is that the entire town is geographically eligible for zero-down USDA home loans – a type of mortgage designed for rural communities. They require no down payment and monthly mortgage insurance is about half that of FHA. Homebuyers wanting low upfront and ongoing payments should check out Beeville, with the average home available at an estimated monthly conventional mortgage cost of $1,350.
Get Pre-Approved for Your Texas Home
Like most places in the U.S., Texas homes are getting more expensive each year. Homes in Southlake and University Park in the DFW metro area now average well over $1 million.
But looking beyond large cities, you find lesser-known gems that offer monthly payments affordable to just about any budget. With these prices, why wait to own a home?
Methodology
To find the 10 most affordable housing markets in Texas, we started with average home prices as reported on the Zillow Home Value Index (ZHVI) Single-Family Home Time Series for November 2025. We assumed a 5% down payment, the typical requirement for first-time buyers. We then calculated the monthly payment on a 30-year fixed mortgage at 6.395%, the recent 30-day average from rate marketplace I Can Buy based on a buyer with a 700 credit score putting 5% down. We added PMI costs per mortgage insurance provider MGIC and tax rates by state from TaxFoundation.org. Homeowner’s insurance estimates were calculated using Nerdwallet’s cost in each state for $300,000 in dwelling coverage. We multiplied this rate by 67.8%, the U.S. average of total market value represented by the structure according to ResiClub (since homeowners insurance is based on the structure, not total value). We then multiplied this rate by the average home’s total market value. We assumed no HOA dues. To increase relevancy, we limited eligible cities to the top 3,000 largest by population nationwide per Zillow data.
Estimated payments are for example purposes only. Not a commitment to lend.
