Texas · 185th largest metro area

Buying a home in Laredo, Texas

In Laredo, the median value of owner-occupied homes is $193,500, Webb County's effective property tax rate is 1.8%, a purchase mortgage carried a median $11,200 in total loan costs in 2025, and median gross rent is $1,030 a month.

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

Laredo home costs, fact by fact

About Laredo

Laredo has 261,260 residents and lies in the Laredo metro area, ranked 185th in the United States. Median gross rent is $1,030 per month, and owners occupy 64.1% of homes.

Reading the Laredo figures

In Laredo, the cost of borrowing weighs more than the price of the home. Lenders recorded 1,653 loans in Webb County in 2025, with a median total cost of $11,200. The middle of the distribution ran from $8,918 to $14,144, and for a home valued at $193,500 even the low end of that range is a notable share of the purchase.

The tax side is similar. Webb County's effective rate is 1.8%, producing a median annual bill of $3,421 on a typical county home valued at $189,900. Laredo's own median value of $193,500 sits just above that county value. Compared with the Texas median of $318,100, the city's values are far lower, and Dallas, with $320,700, is higher still. No sale price stands behind them; they are what owners say their homes are worth.

Among other covered cities, Laredo has company at the lower end. Amarillo reports $196,900, just above. McAllen carries $190,400 and Edinburg falls just below at $189,600. San Angelo reports $187,600. El Paso reports $184,500. Abilene reports $183,700. Beaumont is lower again, with $166,400. Waco reports $221,700, while Killeen reports $215,400, a short step higher.

Rent is $1,030 a month at the census median, below the HUD benchmark in the Laredo zone, which is $1,157 for its smaller-home tier and $1,512 for the larger one. HUD's figure is a federal reference point, not a market median, so the gap shows how benchmark rents can run above what households report paying. Edinburg shows $996. McAllen shows $1,049. Corpus Christi, with $1,292, is higher, as is Dallas, with $1,472. A household renting in Laredo pays well under the HUD tiers, which is one more sign that the benchmark describes new leases and not the typical rent.

Ownership reaches 64.1% of households. That is more than El Paso (60.8%), Amarillo (59.7%) or Waco (49.4%), and slightly above San Angelo's 61.2%. Texas buyers elsewhere often face closing costs and a tax bill that move in step with price. Here they do not: the loan costs are the heavy item while the home price stays low. For a buyer, the combination of a high owner share, low rent and heavier loan costs makes the closing sheet the item to scrutinize, and Beaumont, which reports $166,400 and rent of $1,121, shows how low the price end of the Texas list goes, ahead of the monthly rent comparison.

Laredo has 261,260 residents, close to Lubbock's 272,086 and well below El Paso's 681,723. It is the main city of the Laredo metro area, ranked 185th nationally with 272,823 people, so nearly the entire metro population lives within the city limits, and the county figures above apply across it.

Calculate for Texas

If you buy

Texas state transfer tax

Texas has no real estate transfer tax. Change the price: the amount is recalculated instantly.

Price$318,100
State transfer tax$0
Share of the price—

Default price: the Texas median value of owner-occupied homes, $318,100 (Census ACS 2025). Rule: No transfer tax exists. Buyers pay county recording fees and a state-set title insurance premium. Who pays: No transfer tax to assign. Recording fees and the title insurance premium appear on the closing statement. Not included: county and city transfer taxes, recording fees, title insurance and lender charges. Texas 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: Texas 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 Laredo

How much is property tax in Laredo?

Homeowners in Webb County pay a median $3,421 a year in property tax, 1.8% of the county median home value of $189,900 (Census ACS 2020-2024). Your bill depends on your assessed value and local rates.

What are closing costs on a mortgage in Laredo?

Home-purchase mortgages in Webb County carried median total loan costs of $11,200 in 2025; half of the 1,653 loans fell between $8,918 and $14,144 (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 Laredo?

Texas has no real estate transfer tax. Article VIII, Section 29 of the Texas Constitution, added November 3, 2015, says no law enacted after January 1, 2016 may impose a transfer tax on a transaction that conveys fee simple title to real property.

Is it cheaper to rent or buy in Laredo?

It depends on your mortgage rate, down payment and how long you stay. As a benchmark, the median value of owner-occupied homes in Laredo ($193,500) equals 15.7 years of the median gross rent ($1,030 a month), both from Census ACS 2020-2024.

What natural hazards affect home insurance in Laredo?

Across Texas, the main hazards for home insurance are flood, tornado, wind and hail, and the insurer of last resort is Texas FAIR Plan Association (TFPA). Texas gets more tornadoes than any other state, according to the Texas Department of Insurance; on the coast, windstorm coverage comes from a separate policy, often from TWIA, in 14 coastal counties plus part of Harris County.

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

Texas rules that apply in Laredo

Other large cities in Texas

Who licenses each trade in Texas · All covered cities

Sources

Texas · All states · Federal guides