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Our Houston, TX Housing Cost Breakdown

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I publish my monthly income updates the first Friday of each month in my weekly newsletter.  If you’d like, you can subscribe by clicking here.  Anyway, Vicky at Funny About Money noticed my statement about spending $1250 a month on property taxes and insurances on our two homes.  She emailed me since she was really surprised by that number.  In Arizona, she’s paying less than $2200 a year for her property taxes.

Being the personal finance blogger that I am, I figured it would be fun to have a show and tell day about housing costs.  PLEASE COMMENT BELOW!  This will be awesome!!!  😀

Our Houston, TX Housing Cost Breakdown

That budgeted $1250 number for us comes from multiple things as you’ll see below.  For comparison purposes, our rent house is a 3 bed, 2.5 bath 1750 sq. ft. home that was built in 2004 and was purchased in April 2007 for $114,000.  Our home is a 5 bedroom, 4 bathroom, 3750 sq. ft. home built in 2012 and was purchased in October 2012 for $259,500.

Our Rent House - Now All Ours
Our rent house.
Our Home
Our home.

Here is our personal breakdown of monthly housing costs in our suburb outside of Houston, TX:

  • Mortgage on Our Home – $990
  • Mortgage on Our Rental Home – $0 (paid it off in early 2013…for peeking purposes, it was $730 in the beginning)
  • Estimated Property Taxes on Our Home – $650
  • Estimated Property Taxes on Our Rental Home – $250
  • Our Home Property Insurance – $125
  • Rent Home Property Insurance – $100
  • Our Flood Insurance – $30
  • Rent Home Flood Insurance – $30
  • Our Home Owner’s Association – $60

In general:

  • Total for Our Home – $1855
  • Total for Rent House – $380
  • TOTAL = $2235

Wrap Up

So, yes, property is comparably affordable here, but property taxes are around 3% per year.  I think we are doing pretty good to be spending $2235 a month plus maintenance in order to eventually own two properties completely.  Especially since the rental income from our first home and from the friends we rent to in our current home comes to $2350 per month.  We also have home maintenance funds for each house as separate CapitalOne360 accounts so pop up expenses and maintenance won’t hit us too hard unexpectedly.  🙂

Your turn!  What’s your home’s general location, size, price, and what is your monthly housing cost?  Please share as I think this will be a truly awesome day to everyone!!!

FYI:  I worked at a dead end cubicle job from 2005-2011 for about $30,000 per year.  I went self-employed in July 2011 and make between $70,000-$90,000 through blogging, professional pet sitting, hubby's reffing, and our rental home.  If you’d like to start your own site (link to my free step-by-step guide), I highly suggest checking out Bluehost (my referral link with a nice discount for you, PLUS a free custom header banner from me!).  Please contact me any time at budgetingfunstuff*at*gmail*dot*com with questions or just to brainstorm! I’d love to help!
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12 thoughts on “Our Houston, TX Housing Cost Breakdown

  1. 2930 sq ft house worth around $300K. 4 bed, 2.5 bath. Property taxes are only $2400 a year. Home insurance is $550 and earthquake insurance is $350.

    We have higher cost houses here with extremely low property taxes.

  2. Southern Oklahoma, small town, 1550 sq ft house, 4 bdrm, 2 bath on a little less than half an acre. $130,000 bought new in May 2014. Taxes $1200/year, Insurance $1200/year. One difference we see between Oklahoma and Texas is that our property taxes are less, however we pay state income taxes.

  3. With your house being new, you shouldn’t see a whole lot of flow outward from your maintence fund, but that will change at some point. New houses don’t stay new. Things will start to wear out and you’ll also want to do upgrades. The 10-15 age range of a house seems to be pretty expensive from what I’ve seen.

  4. In NorthernVA (Fairfax County), we paid ~$5000/yr on a house valued at $498k (we sold it for 545k, so those taxes might change with the new owners 🙂 ). We’re expecting to pay about 10-11k/year in various property taxes on our new home in Allegheny County, PA (Pittsburgh suburbs) which we’re buying for ~$367k. Our new place has county property taxes, boro property taxes, and school taxes. We’re paying less that the property was appraised at, so if I get a tax bill based on the appraised value, I’ll be fighting it. However, we won’t know what our property taxes are for at least a year after we buy – the county apparently takes that long to realize there’s a house on the property and start taxing it according to the value of house+land.

  5. Southern California, 2 bed, 2 bath 1250 sq ft. home on a 5500 sq ft lot, value $560K, property taxes $6,000/yr. Home insurance $650 a year.

    Our mortgage is more than both of yours combined. I am envious of the prices everywhere else.

  6. @Trista, ah yes, state taxes. There’s always something…

    @Money Beagle, we have a maintenance fund for both homes that is free to build up as long as possible, LOL.

  7. I always like to see the difference in cost of living across the US. We bought a 2200 sq ft 1970s foreclosure on 3 acres in GA, south of Atlanta, in 2011 for $35,000. I got a construction loan for just over $50k (includes the $35k) to make improvements to the property, which is now appraised at $136,000. Our monthly payment is $468.69, which breaks down to $269.56 principle/interest, $46.25 pmi, $80.50 homeowners insurance, and $73.37 property taxes. We’re looking to move in 1-2 years, so the equity will be helpful in moving to a higher cost of living area if we choose. Wish I could drop that pmi, but it was mandatory with the construction loan, and they wouldn’t allow higher than a 3.5% down payment. We have low cost of living, but also lower wages than most areas as well.

  8. @Mom of 3, yep, it took a year for our appraisal district to re-evaluate our land with a house on it too. And yeah, we have school taxes (the majority), county taxes, and water district taxes all as part of our about 3% in total property taxes…

    @Newlyweds, yeah, coastal prices always make my jaw drop. But you have great weather and low property taxes. 😉 We have 90%+ humidity, annual hurricanes, and property taxes in the 3% range…

    @AJ, seeing the differences is interesting. Way to go on only putting $50k into a home worth $136k already! You could totally turn your current home into a rental property when you move and actually save a few hundred a month to put towards your new place. 🙂

  9. Alabama here… bought 2005 $193 Home value apx $249 but will climb with the new garage, deck and sun room coming soon. 4 br, 3 b. PI payment $870 mo We managed to hold pur prices during the housing crunch

    Property taxes $543 yr – I know we have really low property taxes but our sales taxes are pushing 11% due to small town greed not to mention all the fees for this and that. Home insurance $1848 yr including extras we have.

  10. I have a 800 sq ft (plus full basement) 2 bedroom 1 bath fixer upper that I bought at the end of 2013 for 225 000. It was built in 1945. This was actually a good deal for the area. Property taxes are about 2000 for the year and house insurance is around 1000. I live in Winnipeg, Mb, Canada.

    You live in a mansion lol

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