Buy vs Rent in Amarillo, TX (2026)
Median home price $200K · 1BR rent $950/mo · Price-to-rent ratio 17.5x.
Median home price
$200K
1BR rent
$950/mo
Price-to-rent ratio
17.5x
Verdict
Neutral
Monthly cost of buying — 3 scenarios
30-year mortgage at 7% · Includes property tax, insurance, and maintenance estimates
| 3.5% down (FHA) | 10% down | 20% down (conventional) | |
|---|---|---|---|
| Down payment | $7,000 | $20,000 | $40,000 |
| Mortgage (P&I) | $1,284/mo | $1,198/mo | $1,064/mo |
| Property tax (est.) | $183/mo | $183/mo | $183/mo |
| Insurance (est.) | $83/mo | $83/mo | $83/mo |
| Maintenance (est.) | $167/mo | $167/mo | $167/mo |
| Total monthly cost | $1,717vs rent: +$767/mo | $1,631vs rent: +$681/mo | $1,497vs rent: +$547/mo |
| Income to qualify | $55,029/yr | $51,343/yr | $45,600/yr |
| Break-even (approx.) | ~1 yrs | ~2 yrs | ~6 yrs |
Amarillo housing context
$50K
Median HH income
per year
$45,600
Income needed (20% down)
per year
Qualified
Affordability gap
vs median income
Frequently asked questions
Is it better to buy or rent in Amarillo?
Amarillo's price-to-rent ratio of 17.5x is in the neutral zone (15-20x). Whether to buy or rent depends on how long you plan to stay, your down payment, and your personal finances.
How much do I need to earn to buy a home in Amarillo?
With a median home price of $200K in Amarillo, you'd need an annual income of roughly $45,600 to qualify with 20% down (at 7% rate, 28% housing ratio). With 10% down, you'd need about $51,343/year.
Amarillo full cost of living breakdownCheaper cities near AmarilloHow much to retire in AmarilloCompare mortgage rates
Mortgage at 7% 30-yr fixed · Property tax 1.1% est. · Maintenance 1% est. · Zillow, BLS · Q1 2026 · For general guidance only