North Carolina · 93rd largest metro area

Buying a home in Durham, North Carolina

In Durham, the median value of owner-occupied homes is $392,800, Durham County's effective property tax rate is 0.79%, a purchase mortgage carried a median $4,919 in total loan costs in 2025, and median gross rent is $1,508 a month.

Data as of : Census ACS 2020-2024, Census Vintage 2024, HMDA 2025, HUD FY 2027. Sources

Durham home costs, fact by fact

About Durham

Median gross rent is $1,508 per month, and HUD's Fair Market Rent is $1,745. Owners occupy 52.3% of homes.

Reading the Durham figures

North Carolina's median is $342,800, and Durham sits above it at $392,800. Among the other covered cities, Raleigh leads at $415,800, Charlotte trails slightly at $385,700, and Greensboro and Winston-Salem fall to $244,800 and $233,800.

Rent tells a similar story: Durham's $1,508 monthly is just under Raleigh's $1,572, and Charlotte reaches $1,612. Cary, at $1,738, is higher again. In Durham County the 0.79% tax rate turns into $3,092 a year, with county homes valued at $389,400. Owners are 52.3% of households, slightly more than in Raleigh or Charlotte but well short of Cary's 66.6%. HUD's $1,745 benchmark is higher than the census median, so a newcomer should expect to pay more than the median suggests. In 2025 the central band of loan costs there ran from $3,746 to $8,083, around a median of $4,919. Greensboro's $1,172 and Winston-Salem's $1,087 show how much lower rents run in the lower-value cities.

Calculate for North Carolina

If you buy

North Carolina state transfer tax

Excise stamp tax on conveyances (G.S. 105 Article 8E): $1 for each $500, or fractional part, of consideration or value (0.2%). Change the price: the amount is recalculated instantly.

Price$342,800
State transfer tax$686
Share of the price0.2% of the price
Who paysThe seller

Default price: the North Carolina median value of owner-occupied homes, $342,800 (Census ACS 2025). Rule: Divide the consideration or value by $500, round up to the next whole unit, multiply by $1. Who pays: By law the transferor (seller) pays the Register of Deeds before the deed is recorded. Buyers and sellers can bargain over costs in the contract. Not included: county and city transfer taxes, recording fees, title insurance and lender charges. North Carolina transfer tax guide · all 50 states.

If you sell

Capital gain and the federal tax on it

Same federal rule in every state: Section 121 of the Internal Revenue Code excludes up to $250,000 of gain on a main home ($500,000 for a married couple filing jointly).

Capital gain$350,000
Section 121 exclusion$250,000 (limit $250,000)
Taxable gain$100,000
Type of gainLong-term (owned over 1 year), 15% chosen
Federal tax on the gain$15,000

Section 121 excludes $250,000; the rest is taxable.

Gain = sale price minus your adjusted basis (purchase price, buying costs and improvements); selling expenses reduce it (IRS Publication 523). Long-term rates for sales in 2026, by taxable income including the gain (IRS Rev. Proc. 2025-32, section 4.03): 0% up to $49,450 single or $98,900 married filing jointly, 15% up to $545,500 single or $613,700 jointly, 20% above. Not included: North Carolina state income tax on the gain (not computed), the net investment income tax, depreciation recapture on a rental or home office, and the reduced exclusion for an early sale. Agent commissions are negotiated and never set by law. Capital gains on a home sale.

Questions about buying a home in Durham

How much is property tax in Durham?

Homeowners in Durham County pay a median $3,092 a year in property tax, 0.79% of the county median home value of $389,400 (Census ACS 2020-2024). Your bill depends on your assessed value and local rates.

What are closing costs on a mortgage in Durham?

Home-purchase mortgages in Durham County carried median total loan costs of $4,919 in 2025; half of the 3,512 loans fell between $3,746 and $8,083 (HMDA). Total loan costs are the lender and settlement-service charges of the Closing Disclosure; transfer taxes and prepaid items come on top.

Is there a transfer tax when you buy a home in Durham?

North Carolina charges a state excise tax on deeds of $1 for each $500, or fraction of $500, of the price or value conveyed, which is $864 on a $431,900 home. The seller owes it and pays the county Register of Deeds before the deed is recorded.

Is it cheaper to rent or buy in Durham?

It depends on your mortgage rate, down payment and how long you stay. As a benchmark, the median value of owner-occupied homes in Durham ($392,800) equals 21.7 years of the median gross rent ($1,508 a month), both from Census ACS 2020-2024.

What natural hazards affect home insurance in Durham?

Across North Carolina, the main hazards for home insurance are flood, wind, hail, earthquake and landslide, and the insurer of last resort is North Carolina Insurance Underwriting Association (NCIUA), also called the Coastal Property Insurance Pool. A standard North Carolina homeowners policy usually does not cover flood, earthquake, mudslide or landslide, and may exclude wind and hail in coastal areas; federal flood insurance covers a building up to $250,000 and contents up to $100,000.

Run your own numbers: rent vs buy calculator · closing costs calculator.

North Carolina rules that apply in Durham

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Sources

North Carolina · All states · Federal guides