Renting a three-bedroom house in Arlington typically costs around $2,000 per month. But what differences arise if you consider buying a home with the same budget? According to Zillow, the typical home value in Arlington is $316,890 (a 3.0% decrease from the previous year), while Redfin reports that the median sale price as of February 2026 is $320,000 (a 3.1% decrease from the previous year). In simpler terms, this means that prices have slightly decreased over the past year.

If you purchase a $320,000 home with a 10% down payment, the loan principal would be about $288,000. With a fixed interest rate of 6.6% over 30 years, the principal and interest payment would be around $1,840 per month. When you add property taxes, insurance, and PMI, the total monthly payment would rise to between $2,400 and $2,600. Compared to rent, the initial burden is greater, but the difference is that the principal repayment builds equity.

There are three main items to check in order: first, the type of loan. For FHA loans, a credit score of 580 or higher requires a 3.5% down payment, while a score between 500 and 579 requires a 10% down payment. Conventional loans can start at 3% for first-time homebuyers or those with an income at or below 80% of the area median income, while others typically require 5%. If the down payment is less than 20%, PMI will apply. In simpler terms, the required cash varies significantly based on credit score and income level.

Second, property taxes. Texas has no state income tax but has relatively high property taxes. The effective tax rate in Tarrant County, where Arlington is located, is about 1.77%, which is higher than the Texas state average of 1.58%. For a $320,000 home, this means annual property taxes could exceed $5,000, so it's an item that should not be overlooked in monthly payment calculations. Families moving from other states may overlook the high property tax in exchange for no income tax, so it's especially important to check this.

Third, down payment assistance programs. The Texas State Affordable Housing Corporation (TSAHC) offers Homes for Texas Heroes and Home Sweet Texas, which provide grants or forgivable second loans of 3% to 5% of the loan amount. The Texas Department of Housing and Community Affairs (TDHCA) offers My First Texas Home, which supports up to 5% of the loan amount at a 0% interest rate, to be repaid after 30 years or upon sale/refinance. A credit score of 620 or higher is required, and it can be used alongside the mortgage interest tax credit (MCC).

To clarify some terms, escrow refers to an account where the lender collects property taxes and insurance premiums to pay them annually. Underwriting is the stage where the lender reviews income, assets, and credit to decide on approval. Additional documentation is often requested at this stage, so having bank statements or income verification ready can speed up the process.

Closing costs can be simplified as one-time fees incurred during the home buying process. The appraisal fee is the cost for a professional to assess the home's value, title insurance guarantees there are no issues with ownership, and the loan origination fee is what the lender charges for processing the paperwork. Combined, these costs typically range from 2% to 5% of the loan amount, meaning for a $320,000 home, you should prepare an additional $5,760 to $14,400 at closing.

Whether renting or buying is better depends on your length of stay and budget. For school districts, refer to GreatSchools ratings, but be sure to verify the assigned school for the specific address before purchasing. This article does not constitute investment or legal advice, and consulting a professional before making any contracts is recommended.