Dallas vs San Antonio: at $112k income, only one fits the budget

Texas has no state income tax and two of the most-discussed housing markets in the country. Dallas-Fort Worth gets most of the press — the Fortune 500 headquarters, the airport, the tech corridor along the tollway. San Antonio tends to be described as the "other Texas city," the military town, the H-E-B-and-BBQ city that doesn't quite make the national headlines. But if you're earning $112,000 a year and trying to buy in Texas right now, the numbers don't care about the reputation. They tell a very different story than the usual DFW hype.

Dallas is down 1.7% year-over-year as of March 2026, part of the same Sun Belt correction that hit Tampa, Phoenix, and Denver (S&P CoreLogic Case-Shiller, March 2026). San Antonio has held roughly flat to slightly positive over the same period. After Texas's notoriously high property taxes are applied to both markets, San Antonio saves $676 per month over Dallas on a 20% down purchase at 6.49% rates. Here's the full math, side by side.

The starting numbers: price, trend, and what each city is doing right now

Dallas-Fort Worth metro median home price sits at approximately $390,000 as of June 2026 (Redfin). That's down from its 2022 peak and off 1.7% from a year ago per Case-Shiller — the same broad correction that hit other Sun Belt markets that overshot during the pandemic run-up. Days on market have extended, price cuts are common, and the seller-concession rate in Dallas has trended above the national average.

San Antonio's median runs approximately $305,000 as of June 2026 (Zillow ZHVI). The gap between the two cities is $85,000. San Antonio prices have been remarkably stable — the city didn't see the same percentage run-up Dallas did in 2020 through 2022, so it has less to give back. Year-over-year price growth is roughly flat to slightly positive depending on the source and neighborhood.

Both cities carry zero state income tax. Texas applies no state income tax to wages or investment income, which is the starting point of every Texas affordability conversation. Both cities sit in a state with some of the highest effective property tax rates in the US. Neither city has rent control. The income tax comparison between Dallas and San Antonio is neutral: both are zero. The property tax comparison is where the numbers start to diverge, and they diverge more than most buyers expect.

The full monthly cost table: side by side

This calculation uses 20% down, 6.49% rate (Freddie Mac PMMS, June 25, 2026), the county-level effective property tax rates for each city, and homeowners insurance quotes benchmarked to each market's risk profile.

Texas property tax rates look similar between the two cities — 2.22% vs 2.10% — but the dollar difference is significant because Dallas's home prices are $85,000 higher. That $85,000 gap generates $188 per month more in property taxes alone, on top of the $429 per month in additional principal and interest. The sticker price difference is $85,000. The monthly payment difference is $676. Those are not proportional, and most buyers don't run the full calculation before deciding the sticker price makes Dallas "worth it."

For a buyer earning $112,000 per year, the 28% housing rule allows a maximum monthly PITI of $2,613. San Antonio at $2,308 clears that with $305 of breathing room. Dallas at $2,984 blows through it by $371 per month. A lender will still approve the Dallas purchase if your debt-to-income ratio stays below 43% — but your PITI alone will consume 32% of gross income, before a single student loan payment, car payment, or retirement contribution. That's how buyers end up house-poor in markets that felt affordable until they actually owned there.

Appreciation: the city that's correcting vs the city that's holding

Dallas-Fort Worth built one of the largest pandemic-era price premiums in the country. The metro attracted corporate relocations (Toyota, Caterpillar, Goldman Sachs, Charles Schwab), and home prices rose 40% between 2020 and 2022. That run-up is now unwinding. Case-Shiller has Dallas down 1.7% year-over-year through March 2026 — consistent with the broader Sun Belt correction pattern that includes Tampa (-1.9%), Denver (-2.0%), Phoenix (-1.6%), and Seattle (-2.5%). Price cuts are running above the national average. Days on market have extended meaningfully from the 2021 and 2022 averages.

San Antonio's price trajectory looks different. The city didn't spike as aggressively during the pandemic run-up — it attracted population growth but didn't attract the same speculative investor buying that drove Dallas to unsustainable multiples. Prices are roughly flat to slightly positive year-over-year in 2026. The stability in San Antonio's pricing comes from a more diversified employment base anchored by the military rather than corporate relocations that can reverse.

Joint Base San Antonio — the largest joint military installation in the United States — employs roughly 80,000 active-duty, reserve, civilian, and contractor personnel across Randolph, Lackland, and Fort Sam Houston. Military employment doesn't follow corporate relocation decisions. It doesn't move to Austin if Austin offers a better headquarters deal. That stability acts as a floor under San Antonio housing demand in a way that Dallas's corporate-relocation story cannot replicate.

Buying into a correcting market at $390k with a $2,984 monthly payment is a legitimate choice if your career requires DFW proximity. But the math is working against you: you're paying a premium for an asset that's losing value, at a monthly cost that exceeds what the 28% rule recommends for your income. The appreciation case for Dallas depends on the correction ending and the long-run growth thesis reasserting. That may happen. It hasn't yet.

Employment: what both cities actually run on

DFW's economy is genuinely larger and more diversified than San Antonio's. The metro has more Fortune 500 headquarters, more technology employment, and higher average wages than San Antonio. If career trajectory is your primary driver and you work in financial services, technology, or logistics, DFW is probably the stronger long-term market for income growth. That's the honest version of the Dallas bull case.

San Antonio's economy runs on the military, energy, healthcare, and retail. USAA, one of the largest financial services companies in the country, is headquartered there. Valero Energy and Tesoro (Marathon Petroleum subsidiary) anchor an energy presence that tracks oil prices more than the business cycle. H-E-B is a dominant regional grocery employer. Port San Antonio houses a growing cybersecurity and aerospace cluster with tenant companies including Boeing, SAIC, and Lackland's host organizations. These aren't glamorous names but they produce stable local employment at scale.

The wage gap matters for affordability calculations. If you earn $112,000 per year in San Antonio and could earn $130,000 in Dallas, the Dallas salary advantage narrows but doesn't eliminate the monthly cost gap. $130,000 in Dallas: 28% rule allows $3,033 per month. Dallas PITI: $2,984. Suddenly it fits — but barely, with no cushion. At $112,000, it's broken. The salary question is one you need to answer before this comparison resolves.

The closing cost and down payment reality

Down payment is where the $85,000 price gap first shows up concretely. At 20% down, Dallas requires $78,000 versus San Antonio's $61,000. That's $17,000 more that has to sit in your savings account and leave it at closing, reducing the capital available for your emergency fund, maintenance reserve, and moving costs.

Closing costs compound the gap. Both Texas cities run closing costs at roughly 2.5% to 3.5% of purchase price. At $390k, Dallas closing costs land at $9,750 to $13,650. At $305k, San Antonio runs $7,625 to $10,675. Total out-of-pocket difference between the two cities, including down payment and closing costs, is $20,000 to $28,000 more for Dallas. On a $112,000 income, that's roughly three to four months of net take-home pay. It's real money, not a rounding error.

If you're working with a down payment assistance program, Texas has programs through the TSAHC and TDHCA that apply in both cities. San Antonio buyers, particularly first-generation buyers in Bexar County, have access to additional city-sponsored assistance programs through SAHA and the Neighborhood Housing Services of San Antonio. The lower purchase price in San Antonio makes these programs more likely to fully cover the gap, since most DPA programs cap out at a percentage of purchase price or a dollar ceiling.

Which city wins, and for whom

San Antonio wins the monthly cost calculation unambiguously. $2,308 versus $2,984 per month, with $17,000 less required at closing, in a market that's holding its value while Dallas corrects. The 28% rule test confirms it: at $112,000 income, San Antonio works and Dallas is stretched.

Dallas wins if your career specifically requires DFW proximity. Technology, financial services, and corporate-headquarters roles pay meaningfully more in DFW than in San Antonio, and the long-run employment story in a city with 7.8 million metro residents is structurally stronger than a city of 2.6 million. If you're confident that your earning trajectory will outpace the monthly premium within three to five years, and you have a specific employer or industry tying you to the Metroplex, the Dallas case holds up despite the math working against you today.

The math points toward San Antonio for a buyer at $112,000 income who has the flexibility to choose either market. The monthly savings are $676, the down payment savings are $17,000, and the appreciation trajectory favors the city that didn't overshoot. If you're evaluating both seriously, run the full PITI table — not just the mortgage calculator — and check whether your lender's approval is for the right number. A pre-approval ceiling is not your budget ceiling, and in Dallas at 6.49% rates, the distinction matters a great deal.

One final note on Texas in general: both cities benefit from zero state income tax, no estate tax, and a regulatory environment that is among the most landlord-friendly in the country. If you're buying with the intention of renting the property eventually, SFR yields in Texas at sub-median price points remain competitive with national averages. San Antonio's lower entry price point gives you more optionality on the investment side as well.