7 Best Small Towns in Texas to Buy a Home Under $250K (2025 Guide)
November 17, 2025
11 Minutes
If you’ve felt priced out of Austin, Dallas, or San Antonio in 2025… you’re not imagining it. Big-city medians are still hovering near $400K+, but here’s the shocker: in the right Texas small towns, $250K can still buy a move-in-ready home, sometimes even $50K–$70K below metro averages.
Texas small towns are experiencing a quiet boom among:
- Retirees escaping taxes + seeking medical access
- First-time buyers priced out of metros
- Families chasing safer neighborhoods and better schools
- Remote workers want land, space, and fiber internet
Ready to buy your Texas home?
Get pre-approved in minutes and unlock valuable buyer savings with reAlpha Mortgage.
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• Estimate your savings → Rebate Calculator
What You Actually Save Leaving a Metro
Scenario | Monthly Payment | Your Savings |
|---|---|---|
Austin median ($400K @ 7%) | ~$2,660/mo | – |
Small-town median ($230K–$250K @ 7%) | ~$1,500–$1,650/mo | Save $1,010–$1,160 EVERY month |
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That’s $12,000+ in yearly “lost money” you stop bleeding the moment you leave the metro.
Most buyers underestimate this until they run the math.
Related insight: Transportation, taxes, and insurance are major drivers of these savings - here’s a national-level property tax breakdown to compare.
$12,000+ in yearly “lost money” you stop bleeding
Why Small-Town Texas Beats Big-City Suburbs in 2025
If 2025 has taught buyers anything, it’s this: the suburbs aren’t “affordable” anymore, small towns are. Median suburban prices outside Austin, Dallas, and San Antonio still sit in the $320K–$380K range, but nearby small towns remain 20%–35% cheaper, with far lower taxes and noticeably larger lots. For most buyers, that’s not a lifestyle shift; that’s a monthly-payment reset.
Small-town Texas wins for five reasons that directly show up on your bank statement:
Suburb vs. Small-Town Savings
Cost Driver | Big-City Suburb | Small-Town Texas | Your Instant Savings |
|---|---|---|---|
Median Home Price | ~$350K | ~$225K–$250K | Save $100K–$125K |
Est. Monthly Payment | ~$2,325/mo | ~$1,520–$1,650/mo | Save $675–$805/mo |
Avg. Property Tax Rate | 2.1% | 1.4%–1.9% | Avoid $1,000–$1,800/yr |
Lot Size | 0.12 acre | 0.25–0.40 acre | More space, same budget |
These aren’t hypothetical. They reflect what buyers report in 2025 micro-markets like Hillsboro, Temple, and Harlingen, where inventory under $250K still exists, and often sells fast because FHA, VA, and USDA buyers get approved more easily.
Temple, Weatherford, Seguin, and Marble Falls all offer GreatSchools-rated districts, expanding job centers, and stable broadband coverage for remote work.
The gap between suburban and small-town prices is shrinking. Every quarter you wait, suburb creep absorbs another affordable ZIP code.
Understanding broader market supply and demand trends clarifies why these small towns remain undervalued.
Mortgage Payment Comparison: Austin vs. These 7 Hidden Gems
If you want the fastest way to see why Texas's small towns are in high demand, look no further than this table. One glance and buyers instantly realize how much money they’re losing by staying in Austin’s $400K market when nearby towns still deliver $185K–$245K homes, many move-in-ready and still eligible for FHA/VA/USDA.
This is the kind of wallet math that flips renters into buyers and metro buyers into small-town buyers overnight.
This $400K mortgage breakdown shows how payment differences scale across price tiers.
Austin vs. Affordable Texas Towns (7% Rate – 30 Yr Fixed)
Market | Median Home Price | Est. Monthly Payment | Payment Difference | Buyer Persona Fit |
|---|---|---|---|---|
Austin | $400,000 | $2,660/mo | – | N/A |
Marble Falls | $245,000 | ~$1,630/mo | Save $1,030/mo | Retirees, families |
Seguin | $230,000 | ~$1,530/mo | Save $1,130/mo | First-time buyers |
Hillsboro | $185,000 | ~$1,230/mo | Save $1,430/mo | Remote workers |
Most buyers don’t realize this: moving just 45–90 minutes outside a major metro can cut your monthly payment by $1,000+, without sacrificing job access or schools. That’s $12,000–$17,000/year you stop losing
Save up to 1.5% at closing when you buy
Save up to 1.5% at closing when you combine real estate and mortgage services with reAlpha.
Best Small Towns in Texas for Affordable Living Under $250K
Town | Persona Fit | Median Home Range (2025) | Why It Wins | Commute Access | Loan Fit |
|---|---|---|---|---|---|
Marble Falls | Retirees, Remote Workers | ~$240K–$260K (select homes under $250K) | Hill Country living, lake access, and medical centers | 45 min to Austin | FHA, VA, USDA-eligible areas nearby |
| Seguin | First-Time Buyers, Families | ~$225K–$250K | Strong schools, manufacturing jobs, growing suburbs | 40 min to San Antonio | FHA + USDA pockets |
| Hillsboro | Remote Workers, Budget Buyers | ~$180K–$200K | One of the cheapest places to live in Texas, with major highway access | Direct I-35 access to Waco/Dallas | USDA + FHA |
Nacogdoches | Retirees, College-Town Buyers | ~$190K–$230K | Low taxes, strong hospital system, historic charm | East Texas hub; commuter-friendly | FHA, VA, USDA zoning |
| Weatherford | Families, Fort Worth Movers | ~$225K–$250K | Top-rated schools, big-lot homes, strong job access | 35–45 min to Fort Worth | FHA, VA |
| Temple | Healthcare Workers, VA Buyers | ~$200K–$240K | Major hospitals, VA system, affordable new builds | Central Texas access to Waco/Austin | FHA, VA, USDA |
| Harlingen | Retirees, Budget Buyers | ~$160K–$190K | Warm climate, lowest home prices, low cost of living | Gulf Coast region | USDA + FHA |
1. Marble Falls - Hill Country Charm Under $250K
If you’ve been dreaming of a Hill Country home but assumed you were priced out, Marble Falls is the exception. Despite rising demand, select homes for sale in Marble Falls, TX still fall within the $240K–$250K band, rare for Texas Hill Country cities, where many markets jumped to $400K+. For retirees and remote workers, it’s the perfect “have-it-all” town: lakeside living, wineries, clinics, and a peaceful pace that still sits 45 minutes from Austin when you need it.
Hill Country vs. Big City
Location | Median Price | Est. Payment | Savings |
|---|---|---|---|
| Austin | $400K | ~$2,660/mo | – |
Marble Falls | ~$245K | ~$1,630/mo | Save $1,030/mo |
The difference? Over $12,000/year back in your pocket, money most Hill Country buyers don’t even know they’re losing.
Especially in older neighborhoods, smaller lake-area cottages, and USDA-eligible outskirts.
Explore FHA/VA/USDA options for Marble Falls buyers →
Hill Country demand rises every quarter; waiting even 90 days may erase today’s sub-$250K options.
2. Seguin - Best for First-Time Buyers Seeking a Fast San Antonio Commute
Seguin hits the sweet spot for first-time buyers who want affordability and access. It remains one of the few small towns in Texas where sub-$250K homes are consistently available, even with its growth boom. Add solid schools, manufacturing jobs, and a 40-minute commute to downtown San Antonio, and Seguin becomes the “why didn’t we move sooner?” market.
Seguin vs. SA Suburbs
Market | Median Price | Est. Payment | Savings |
|---|---|---|---|
SA Suburb Avg | ~$320K | ~$2,060/mo | – |
Seguin | ~$230K | ~$1,530/mo | Save ~$530/mo |
That’s $6,300/year first-time buyers can redirect toward furnishing, emergency funds, or early equity.
Seguin sits in the middle of SA, New Braunfels, and major industrial corridors.
Check if Seguin homes qualify for USDA or 3.5% down FHA →
Every month of waiting = $500+ in rent lost instead of building equity.
3. Hillsboro - One of the Cheapest Places to Live in Texas for Families
Hillsboro is exactly what budget-conscious families search for but rarely find: affordable houses in Texas priced around $180K–$200K, with direct I-35 access to Waco, Dallas, and Fort Worth. It’s routinely ranked among the cheapest places to live in Texas, but unlike other low-cost towns, it offers major commute flexibility and enough space for remote workers.
Hillsboro vs. Metro North Texas
Market | Median Price | Payment | Savings |
|---|---|---|---|
Dallas Suburbs | ~$380K | ~$2,410/mo | – |
Hillsboro | ~$185K | ~$1,230/mo | Save ~$1,180/mo |
That’s over $14,000/year - enough to cover childcare, repairs, or emergency savings.
Many homes were built in the 90s–2000s, and USDA-eligible zones make zero-down more common.
See what a Hillsboro mortgage would cost you in 20 seconds →
Inventory under $200K is shrinking fastest in I-35 corridor towns.
4. Nacogdoches - Best for Retirees & College-Town Buyers
Nacogdoches blends affordability, charm, and stability, three things retirees value most. With low property taxes, a respected hospital system, and new builds still under $250K, it’s one of the best small towns in Texas for long-term living. College-town energy (SFA State University) keeps restaurants, events, and rentals vibrant without metro chaos.
Nacogdoches vs. East Texas Suburbs
Market | Median Price | Payment | Savings |
|---|---|---|---|
Nearby Suburbs | ~$290K | ~$1,880/mo | – |
Nacogdoches | ~$200K–$220K | ~$1,350/mo | Save $530/mo |
Retirees love this because it adds up to $6,000+/year - real cash flow that makes fixed-income living easier.
Nacogdoches boasts a full hospital system, specialty clinics, and fast transfers to Tyler & Houston facilities.
College towns rarely stay cheap. Enrollment grows; so do home values.
5. Weatherford - Small City Feel with Big-City Access
Weatherford is where Fort Worth families go when they want more house, more land, and better schools without giving up job access. Even with rapid growth, select homes in older neighborhoods still land in the $225K–$250K band - nearly unheard of for small cities in Texas this close to a major metro.
Weatherford vs. Fort Worth
Market | Median Price | Payment | Savings |
|---|---|---|---|
Fort Worth | ~$350K | ~$2,150/mo | – |
Weatherford | ~$240K | ~$1,600/mo | Save ~$550/mo |
That’s $6,600/year families can reallocate toward sports, travel, or emergency funds.
Growth = more retail, better schools, stronger resale value - not a downside.
Weatherford’s appreciation rate is rising - today’s $240K could be $270K next year.
6. Temple - Best for Healthcare Workers & VA Buyers
Temple is a Central Texas powerhouse for healthcare jobs - and one of the best Texas retirement towns for military families, thanks to the VA health system. Many neighborhoods still offer new construction in the low-$200s, with FHA/VA approvals that are smoother than in denser markets.
Temple vs. Austin Suburbs
Market | Median Price | Payment | Savings |
|---|---|---|---|
Austin Suburbs | ~$360K | ~$2,210/mo | – |
Temple | ~$215K–$240K | ~$1,500–$1,650/mo | Save ~$600–$700/mo |
That’s $7,200+ yearly, a massive advantage for buyers in medical fields.
Actually, it is a job center, home to Baylor Scott & White, clinics, and high-demand medical employers.
Temple’s new-build prices rise with construction demand - delaying risks of losing today’s low-$200s.
7. Harlingen - Cheapest City in Texas to Buy a House (Under $200K)
Harlingen is hands-down the most affordable city on this list - often ranking as the cheapest city in Texas to buy a house, with typical prices around $160K–$190K. Combine that with a low cost of living, warm Gulf climate, and USDA-eligible zones, and it becomes the retirement-friendly powerhouse that budget buyers love.
Harlingen vs. Texas Average
Market | Median Price | Payment | Savings |
|---|---|---|---|
Texas State Avg | ~$315K | ~$2,030/mo | – |
| Harlingen | ~$180K | ~$1,230/mo | Save ~$800/mo |
That’s $9,600/year retirees can keep, an immediate boost to fixed-income budgets.
Many homes are well-kept brick buildings, and the area’s cost advantage comes from economic factors, not poor housing stock.
Sub-$200K cities disappear first in rising-rate markets. Harlingen won’t stay this cheap forever.
School Ratings, Safety Scores & Job Access (Town-by-Town Breakdown)
When you’re choosing between affordable small towns in Texas, price is only half the story. The other half is:
Here’s how the 7 towns stack up at a glance:
Most of these towns now report reliable broadband coverage in core neighborhoods, especially around schools, hospitals, and job centers, making them viable for remote workers and hybrid commuters.
Each year you delay = roughly $7,000–$10,000 in lost savings as prices, taxes, and insurance creep up in these “hidden gem” districts.
If school quality is a major deciding factor, this Texas school district guide breaks down top-performing districts statewide.
2025 Cost-of-Living Breakdown (How Far $250K Really Goes)
Here’s the 2025, inflation-adjusted breakdown that shows why Texas small towns stretch your dollar far more than Austin, Dallas, or San Antonio.
Cost-of-Living Snapshot: What You Pay in a Small Texas Town vs. a Big Metro
Category | Big Metro Avg (Austin/DFW/SA) | Small-Town Texas Avg | Your Monthly Savings |
|---|---|---|---|
Housing | ~$2,300–$2,650/mo | $1,350–$1,650/mo | Save $700–$1,000 |
| Utilities | ~$230/mo | $165–$185/mo | Save ~$50/mo |
| Groceries | ~$550/mo | $430–$480/mo | Save ~$90/mo |
Property Taxes | 2.0%–2.3% | 1.4%–1.9% | Save $80–$150/mo |
| Insurance | ~$165/mo | $115–$135/mo | Save ~$40/mo |
Transportation | ~$780/mo | $580–$650/mo | Save ~$150/mo |
Total Monthly Savings: $1,100-$1,530/mo
That’s $13,000–$18,000 per year that stays in your bank account instead of disappearing into rent or metro-level costs.
When buyers hear “homes under $250K,” they think the savings stop at housing.
But in reality, small-town living turns into a 5-category discount that compounds every month.
The biggest savings come from property taxes, insurance, and transportation, not lifestyle trade-offs. Many of these towns still offer:
- Solid hospitals (Marble Falls, Temple, Nacogdoches)
- Big-box retail + groceries
- High-speed fiber internet
- Strong school districts (Weatherford, Seguin)
Ready to buy your Texas home?
Get pre-approved in minutes and unlock valuable buyer savings with reAlpha Mortgage.
• Start here → reAlpha Mortgage Pre-Approval
• Estimate your savings → Rebate Calculator
To compare overall affordability across multiple U.S. states, this guide offers additional perspective on cost-of-living advantages outside Texas.
Your $250K Goes Further in Texas Small Towns - Don’t Wait Until These Markets Disappear
If 2025 has made one thing obvious, it’s this: the Texas “affordability map” is shifting faster than most buyers realize. Every quarter, suburbs get pricier, insurance inches higher, and under-$250K homes vanish from metros almost overnight. But in the right small towns — Marble Falls, Seguin, Hillsboro, Nacogdoches, Weatherford, Temple, and Harlingen — $250K still buys a move-in-ready home, not a fixer-upper.
- For retirees, that means more cash flow and better access to hospitals.
- For first-time buyers, it means building equity instead of paying rising rent.
- For families, it means safer neighborhoods and better schools.
- For remote workers, it means more space, fiber internet, and lower stress.
And the wallet math is non-negotiable: moving just 45–90 minutes from a major Texas metro saves most buyers $12,000–$18,000 per year. That’s money you reclaim immediately - not someday.
The price gap between small towns and suburbs is shrinking. Inventory under $250K is disappearing the fastest. The same ZIP codes that look affordable today may be gone by the next rate cycle.
A Smarter Way to Buy a Home - and Save at Closing
Buying a home is a big decision - and having the right information puts you ahead. But the real advantage comes from pairing smart research with a smarter way to buy.
When you use a reAlpha real estate company, you can be eligible to receive up to 1% of the home purchase price back as a credit at closing. Add reAlpha Mortgage, and that rebate can increase to up to 1.5% back, helping offset closing costs and keep more money in your pocket when it matters most.
The rebate is simple, transparent, and applied directly at closing - no complicated hoops, no delayed payouts. Just real savings tied to using a fully integrated homebuying experience.
See how much you could save:
- Check your eligibility
- Explore homes that fit your budget today.
- Your next move could come with thousands back at closing.
FAQs
1: What is the cheapest small town in Texas to buy a home in 2025?
Harlingen, Hillsboro, and parts of Nacogdoches often list homes under $180K, making them the best low-cost markets for first-time buyers and retirees.
2: Can I buy a move-in-ready home in Texas for under $250K?
Yes. Many small towns still offer turnkey homes between $180K–$240K -especially in Hill Country, Gulf Coast, and North Texas college towns.
3: What loans work best for buying in smaller Texas towns?
FHA works well for first-time buyers, VA for military families, and USDA for rural-eligible ZIPs (many Texas small towns qualify).
4: Are Texas small towns good for retirees?
Yes - towns like Marble Falls, Nacogdoches, and Weatherford offer healthcare access, low taxes, and safe neighborhoods with affordable homes.
5: Which Texas small towns are best for families?
Weatherford, Seguin, and Temple offer strong schools, job access, parks, and homes under $250K.
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As a great communicator with excellent negotiation skills, I focus more on establishing unbreakable ties between my clients, as opposed to just helping them achieve their real estate dreams. As a representative of both buyers and sellers, I understand how to lead a transaction process to ensure that the needs of both are met. My track record speaks for itself. Since I ventured into the industry in 2013 as a realtor, I have not only helped many buyers land perfect homes, but I have also assisted tons of owners and investors build wealth.