Rent or Buy in Dallas?

Dallas is one of the most affordable major metros in the country on a price-to-income basis, but that affordability is more nuanced than the headline numbers suggest. Median home prices in Dallas County sit around $320,000–$380,000 — well below coastal metros — and the city's strong job market in finance, technology, and healthcare provides the income foundation that makes homeownership accessible to a broad range of households.

The complication, as with all of Texas, is property taxes. Dallas County's effective property tax rate runs 2.0–2.5% of assessed value — among the highest in the nation. On a $350,000 home, that's $7,000–$8,750 per year in property taxes, or $583–$729 per month. Texas funds its schools and local government almost entirely through property taxes in the absence of a state income tax, and this structural reality means buyers in Dallas are effectively trading income tax savings for property tax costs. For high earners, the trade is often favorable; for moderate-income households, the math is tighter.

The rental market in Dallas has softened since 2022, when a wave of apartment construction began delivering new units. A two-bedroom in Uptown or Deep Ellum now rents for $1,800–$2,400 per month — competitive enough that renting is the financially rational choice for shorter-term residents, but not so cheap that it obviously beats buying for those planning to stay five or more years.

Dallas has historically appreciated at 4–6% annually, supported by strong population growth and a business-friendly regulatory environment. The break-even point for most buyers falls between five and seven years. The calculator below uses current Dallas median prices and Dallas County tax rates for a personalized analysis.