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Mississippi vs Texas:
Mortgage & Housing Costs

Side-by-side comparison of mortgage costs, property taxes, closing costs, and homeowners insurance between Mississippi and Texas. Updated for 2026.

MetricMississippiTexas
Median Home Price$175K$310K
Property Tax Rate0.8%1.8%
Avg Closing Costs$2K$5K
Closing Cost %1.4%1.7%
Transfer TaxNoneNone
Homeowners Insurance$2,400/yr$3,800/yr
First-Time Buyer Program
MHC Smart Solution
Up to $10,000 DPA
TDHCA My First Texas Home
Up to 5% DPA grant
Verdict

Mississippi wins 5 of 6 cost categories, making it the more affordable state for homebuyers overall. With a median home price of $175K and lower overall costs, Mississippi offers meaningful savings compared to Texas. Both states offer first-time buyer programs — explore the state pages for full details.

Monthly Payment Comparison

Estimated PITI payments assuming 10% down, 6.5% rate, 30-year fixed mortgage with PMI.

Mississippi
Home Price$175,000
Down Payment (10%)$17,500
Loan Amount$157,500
Monthly P&I$996
Monthly Property Tax$117
Monthly Insurance$200
Monthly PMI$66
Total PITI$1,378/mo
Annual property tax: $1,400
Texas
Home Price$310,000
Down Payment (10%)$31,000
Loan Amount$279,000
Monthly P&I$1,763
Monthly Property Tax$465
Monthly Insurance$317
Monthly PMI$116
Total PITI$2,661/mo
Annual property tax: $5,580

The monthly payment difference is $1,283/month — thats $15,396/year or $462K over the life of a 30-year loan. Buying in Mississippi is the more affordable option based on median home prices with identical loan terms.

Income Needed to Buy

Based on the 28% debt-to-income rule — your monthly housing payment should not exceed 28% of gross monthly income.

Mississippi
$59K/yr
minimum household income
Texas
$114K/yr
minimum household income

To afford the median home in Texas, you need a household income of approximately $114K/year. In Mississippi, you need $59K/year — less by $55K/year. That $55K income gap means Mississippi is accessible to a significantly wider range of households.

Which State Is Right for You?

Mississippi offers meaningfully lower home prices than Texas, with median prices running 44% less ($135K difference). This gap translates to both a smaller loan and lower monthly payments. First-time buyers priced out of Texas may find Mississippi far more accessible, particularly when combined with local down payment assistance programs.

Mississippi has a moderate property tax advantage at 0.8% versus Texas's 1.8%. While the rate gap of 1.00% may seem small, it translates to an annual difference of approximately $4,180 when applied to each state's median home price. Over a typical homeownership period of 7-10 years, that adds up to $33K in savings.

Insurance costs favor Mississippi at $2,400/year versus $3,800/year in Texas, a difference of $1,400 annually. While not the largest cost factor, this adds up to over $14K over a decade of homeownership. Shop multiple carriers in either state — actual premiums depend on your specific property, coverage level, and claims history.

Both states offer down payment assistance for first-time buyers. Mississippi's MHC Smart Solution provides Up to $10,000 DPA, while Texas's TDHCA My First Texas Home offers Up to 5% DPA grant. These programs can significantly reduce your upfront costs and make homeownership accessible even if you haven't saved a full 20% down payment. Check eligibility requirements on each state's housing finance agency website — income limits and purchase price caps apply.

Key Takeaway

The bottom line: Mississippi homes cost $135K less than Texas on average. That translates to roughly $1,283 less per month in total housing costs if you choose Mississippi. For most buyers, this price gap is the single biggest factor — it affects your loan size, monthly payment, and how quickly you build equity.

Compare Other States

Mississippi vs AlabamaMississippi vs ArkansasMississippi vs FloridaTexas vs AlabamaTexas vs AlaskaTexas vs Arizona

Frequently Asked Questions

Is it cheaper to buy a home in Mississippi or Texas?
Mississippi is cheaper overall. The median home costs $175K compared to $310K in Texas, and the total monthly PITI payment is $1,378 versus $2,661. That works out to $1,283 less per month or $15,396 less per year in Mississippi.
How much more are property taxes in Texas vs Mississippi?
Texas has a property tax rate of 1.8% compared to 0.8% in Mississippi. On the median home, that means Texas homeowners pay approximately $5,580/year in property taxes versus $1,400/year in Mississippi — a difference of $4,180/year.
Which state has better first-time buyer programs, Mississippi or Texas?
Mississippi offers the MHC Smart Solution (Up to $10,000 DPA), while Texas has the TDHCA My First Texas Home (Up to 5% DPA grant). Both programs aim to reduce upfront costs for first-time buyers. Eligibility depends on income limits, purchase price caps, and other criteria set by each state's housing finance agency.

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