15 Texas Cities Where It’s Cheaper To Rent Than To Own a Home

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Millions of Americans intend to buy a home in 2025. There’s no single, across-the-board reason as to why people are pulling the trigger on what is probably the biggest financial decision of their lives, but there are few common drivers. Some people want a home as a primary investment and component of their net worth; others want a stable environment to raise a family; and others yet just simply are sick of renting. 

Many hopeful homeowners are eyeing Texas. The Lone Star state gained more new residents than any other in 2023. But if saving money is of importance, it’s worth knowing where in Texas it is actually, on average, cheaper to rent than to own. 

In a new study, GOBankingRates analyzed rental costs and mortgage costs to find the cities in Texas where it is cheaper to rent than to own. These are the top 15 cities in Texas where renting is actually cheaper than owning. 

15. Addison

• Average single-family home value: $519,357
• Monthly average mortgage cost: $3,094 
• Monthly average rent cost: $1,624 
• Monthly savings by renting instead of owning: $1,470

14. Grapevine

• Average single-family home value: $537,271 
• Monthly average mortgage cost: $3,201
• Monthly average rent cost: $1,702 
• Monthly savings by renting instead of owning: $1,499

13. Austin

• Average single-family home value: $539,972 
• Monthly average mortgage cost: $3,217 
• Monthly average rent cost: $1,645 
• Monthly savings by renting instead of owning: $1,572

12. Hudson Oaks

• Average single-family home value: $531,704 
• Monthly average mortgage cost: $3,168 
• Monthly average rent cost: $1,552
• Monthly savings by renting instead of owning: $1,615

11. Southlake

• Average single-family home value: $1,224,848 
• Monthly average mortgage cost: $7,297 
• Monthly average rent cost: $5,625 
• Monthly savings by renting instead of owning: $1,672

10. Coppell

• Average single-family home value: $615,660 
• Monthly average mortgage cost: $3,668 
• Monthly average rent cost: $1,969 
• Monthly savings by renting instead of owning: $1,699

9. Keller

• Average single-family home value: $626,377 
• Monthly average mortgage cost: $3,732 
• Monthly average rent cost: $1,872 
• Monthly savings by renting instead of owning: $1,859

8. Boerne

• Average single-family home value: $550,688 
• Monthly average mortgage cost: $3,281 
• Monthly average rent cost: $1,420 
• Monthly savings by renting instead of owning: $1,861

7. Fairview

• Average single-family home value: $646,692 
• Monthly average mortgage cost: $3,853 
• Monthly average rent cost: $1,945 
• Monthly savings by renting instead of owning: $1,907

6. Dripping Springs

• Average single-family home value: $698,955 
• Monthly average mortgage cost: $4,164 
• Monthly average rent cost: $2,241 
• Monthly savings by renting instead of owning: $1,923

5. Frisco

• Average single-family home value: $671,477 
• Monthly average mortgage cost: $4,000 
• Monthly average rent cost: $1,933 
• Monthly savings by renting instead of owning: $2,067

4. Lakeway

• Average single-family home value: $797,068 
• Monthly average mortgage cost: $4,749 
• Monthly average rent cost: $2,125 
• Monthly savings by renting instead of owning: $2,623

3. Prosper

• Average single-family home value: $816,559 
• Monthly average mortgage cost: $4,865 
• Monthly average rent cost: $1,754 
• Monthly savings by renting instead of owning: $3,111

2. Horseshoe Bay

• Average single-family home value: $792,845 
• Monthly average mortgage cost: $4,723 
• Monthly average rent cost: $1,495 
• Monthly savings by renting instead of owning: $3,228

1. Bee Cave

• Average single-family home value: $889,063 
• Monthly average mortgage cost: $5,297 
• Monthly average rent cost: $1,818 
• Monthly savings by renting instead of owning: $3,478

Methodology: For this study, GOBankingRates analyzed rental costs and mortgage costs to find the cities in Texas where it is cheaper to rent than to own. First, GOBankingRates isolated cities in Texas whose housing values and rent costs are available on Zillow Home Value Index for December 2024. Using the average single-family home value, assuming a 10% down payment, and using the most recent national average 30-year fixed mortgage rate, as sourced from the Federal Reserve Economic Data, the average mortgage can be calculated. The difference in the rent cost and mortgage cost can be calculated. The total population, total households, population ages 65 and over, and median household income were all sourced from the U.S. Census American Community Survey. The cities were sorted to show the highest to lowest difference in rent to mortgage cost, with rent being lower. All data was collected on and is up to date as of Feb. 4, 2025.

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