Texas · 196th largest metro area

Buying a home in Tyler, Texas

In Tyler, the median value of owner-occupied homes is $235,300, Smith County's effective property tax rate is 1.16%, a purchase mortgage carried a median $7,196 in total loan costs in 2025, and median gross rent is $1,252 a month.

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

Tyler home costs, fact by fact

About Tyler

With 112,219 residents, Tyler is a city in Smith County, Texas. Its median gross rent is $1,252 a month, and 55.4% of homes are owner-occupied. The median home value is $235,300, an owner estimate rather than a sale price, while HUD sets the county Fair Market Rent for a two-bedroom at $1,277.

Reading the Tyler figures

Tyler's owners estimate their homes at $235,300, a level under the Texas figure of $318,100 and almost level with San Antonio's $235,700. Mesquite stands at $245,700, Odessa at $223,100, so the city belongs with the Texas places whose owners put values in the low-to-middle range. Dallas is clearly higher with $320,700, as is Fort Worth with $303,000. As always, these are owners' estimates and not sale prices.

Rent runs at $1,252 a month by the census measure. Waco shows $1,165 and Lubbock $1,182, both lower, and Killeen shows $1,208. Corpus Christi sits higher, at $1,292, as does Odessa, at $1,315. Rent in Grand Prairie is $1,629 and in Garland $1,641, which gives a sense of how much more rent costs where homes are valued higher. HUD's table for the Tyler area lists $1,277 for the smaller bedroom count and $1,718 for the larger, so the smaller entry edges above the census rent. That benchmark is not a market median.

Among households, 55.4% own their home. Fort Worth has 57% and Grand Prairie 58.7%, whereas Killeen shows 49.5% and Waco 49.4%. Houston and Dallas are lower still, at 42.1% and 42.4%. Tyler therefore falls in the middle of the pack for ownership, with a share neither unusually high nor unusually low.

Property tax in Smith County works out to an effective rate of 1.16%, or a median of $2,804 a year, on county homes valued at $240,700. That county value is only slightly above what Tyler owners report, so the median bill is a fair first guide to what a typical purchase in the city would carry. Even so, a buyer should ask for the actual assessed value of the house under consideration.

Borrowing costs were modest. The county recorded 2,116 loans in 2025, and the median loan cost $7,196, while the middle of the field paid between $4,932 and $10,538. A borrower at the lower end paid near $4,932, while another at the upper end paid near $10,538, so the median alone hides variation. That spread is a reminder that shopping among lenders can be worth the effort.

Measured against its state, the city looks like a lower-cost entry. Its owners report $235,300 while the Texas figure is $318,100, and its rent of $1,252 is below the $1,509 in Fort Worth and the $1,472 in Dallas. For scale, the metro area ranks 196th nationally with 249,091 residents, and the city itself counts 112,219.

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 Tyler

How much is property tax in Tyler?

Homeowners in Smith County pay a median $2,804 a year in property tax, 1.16% of the county median home value of $240,700 (Census ACS 2020-2024). Your bill depends on your assessed value and local rates.

What are closing costs on a mortgage in Tyler?

Home-purchase mortgages in Smith County carried median total loan costs of $7,196 in 2025; half of the 2,116 loans fell between $4,932 and $10,538 (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 Tyler?

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 Tyler?

It depends on your mortgage rate, down payment and how long you stay. As a benchmark, the median value of owner-occupied homes in Tyler ($235,300) equals 15.7 years of the median gross rent ($1,252 a month), both from Census ACS 2020-2024.

What natural hazards affect home insurance in Tyler?

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.

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Texas rules that apply in Tyler

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Sources

Texas · All states · Federal guides