Rent vs Buy in Dallas, TX

Compare renting vs buying with Dallas's real market data (2025)

Dallas Housing Market at a Glance

Median Home Price

$425,000

Median Monthly Rent

$1,850

Property Tax Rate

1.81%

Avg Home Insurance

$2,600/yr

Price-to-Rent Ratio: 19.1x (Lower ratios favor buying; higher ratios favor renting)

Dallas-Specific Insights

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Key Factors for Dallas Buyers

1. Down Payment Requirements

With Dallas's median home price of $425,000, a 20% down payment is $85,000. Putting down less triggers PMI (typically 0.5–1.5% annually until you reach 20% equity).

2. Property Taxes

TX's property tax rate averages 1.81%, which translates to roughly $641.042/month on a median-priced home. This is above the national average.

3. Tax Deductions

Mortgage interest is deductible if you itemize (must exceed standard deduction: ~$14,600 single, ~$29,200 married in 2025). With no state income tax in TX, the federal mortgage interest deduction is your primary tax benefit.

4. Opportunity Cost

If you rent and invest your down payment instead (e.g., S&P 500 averaging ~10% annually), you build wealth differently. The calculator models this trade-off month-by-month to find your break-even point.

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