What owning a home really costs each month
A mortgage calculator shows principal and interest. The bill you actually pay also includes property tax, which varies more than almost any other housing cost from one county to the next, and insurance. This tool adds them up for any metro-area county using the Census Bureau’s American Community Survey: the county’s median real estate taxes paid divided by its median home value gives an effective property-tax rate, which we apply to the price you enter.
Worked example: Travis County, TX
The county’s median home value is $523,000 and its median annual real estate tax bill is $7,727, an effective rate of 1.48%. With 20% down ($104,600) on a 30-year loan at 6.5%:
| Part | Monthly | How |
|---|---|---|
| Principal & interest | $2,645 | $418,400 loan, standard amortization |
| Property tax | $644 | $523,000 × 1.48% ÷ 12 |
| Insurance | $150 | $1,800 a year placeholder ÷ 12 |
| Total | $3,438 |
The monthly payment uses the standard formula P × r ÷ (1 − (1 + r)−n), with r the monthly rate and n the number of payments. For example, a $320,000 loan at 6.5% for 30 years costs $2,023 a month in principal and interest.
How price and rate change the bill in Travis County
Monthly cost of owning (principal, interest, property tax at 1.48% and $1,800 insurance), 20% down, 30 years:
| Home price | 5.5% rate | 6.5% rate | 7.5% rate |
|---|---|---|---|
| $392,000 | $2,413 | $2,615 | $2,825 |
| $523,000 | $3,170 | $3,438 | $3,719 |
| $654,000 | $3,926 | $4,262 | $4,613 |
Each percentage point on the mortgage rate changes the payment far more than the same change in price does at today’s rates, while property tax rises in step with price. Use the tool above with your own quote.
Highest and lowest effective property-tax rates
Across the 1,168 counties in our data with a point estimate the median effective rate is 0.80%. The extremes:
| Highest | Rate | Lowest | Rate |
|---|---|---|---|
| Salem County, NJ | 2.93% | East Feliciana Parish, LA | 0.15% |
| Camden County, NJ | 2.83% | Maui County, HI | 0.16% |
| Orleans County, NY | 2.72% | Bibb County, AL | 0.20% |
| Monroe County, NY | 2.63% | Gilpin County, CO | 0.23% |
| Gloucester County, NJ | 2.60% | Walker County, AL | 0.26% |
| Lake County, IL | 2.58% | Elmore County, AL | 0.27% |
Not ranked: 17 counties where the Census reports the median real estate tax only as “$10,000 or more” (Bergen County, NJ; Essex County, NJ; Hunterdon County, NJ; Monmouth County, NJ; Morris County, NJ; Passaic County, NJ and others). Their rate is known only as a lower bound — $10,000 ÷ median value — and the tool labels it “at least”.
Why the effective rate is the right yardstick
Statutory property-tax rates are hard to compare: counties assess homes at different shares of market value, layer school, city and special-district levies, and grant homestead exemptions and caps. The effective rate cuts through that by comparing what owners actually pay with what their homes are worth. It is an average, so a new buyer can pay more than the median — in states that cap assessment increases for existing owners, a purchase often resets the assessed value to the price paid. Check the county assessor’s estimator before you buy.
Renting vs owning in the same county
The results compare your monthly ownership cost with HUD’s FY2027 Fair Market Rents for 2- and 3-bedroom units and with the county’s Census median gross rent. Rents include tenant-paid utilities and ownership costs here don’t, so add utilities when you compare. Owning also builds equity through principal payments, which this monthly comparison does not credit.
Using the result when you move
If you are moving between counties, run the tool for both. A home at the same price can carry a very different property-tax bill on each side of a county or state line, and that difference repeats every year. Compare the monthly totals, then check the county assessor’s published rates and any homestead exemption you would qualify for as an owner-occupant, since the Census median already reflects exemptions that typical owners receive. Lenders usually collect property tax and insurance monthly through an escrow account, so the total here is close to the payment a lender would quote, before mortgage insurance and HOA dues.
Not included
- Private mortgage insurance, typically required with less than 20% down.
- HOA or condo fees, maintenance and repairs, and closing costs.
- Flood or earthquake coverage, which standard policies exclude.
For a full household budget including taxes, childcare and transportation as a homeowner, set “Own” in the relocation budget planner.