Yes — new construction under $300K is still realistic near Houston, but almost never in the higher land-cost submarkets west of the city. It's most common in corridors with more available land and lower base lot costs, generally east and northeast of Houston: Crosby, Dayton, Baytown, Splendora, New Caney, Porter, and parts of Conroe. What that $300K actually buys — square footage, lot size, and especially your total monthly payment once taxes and any MUD fees are added — varies a lot by community, which is what the rest of this guide walks through.
Where sub-$300K new construction actually exists
Land cost is the biggest driver of a builder's base price, and land cost tracks distance from Houston's core job centers and existing infrastructure. That's why the corridors with the most sub-$300K new construction tend to be further out: east along US-90 and SH-146 toward Crosby, Dayton, and Baytown; and northeast along US-59/I-69 and SH-99 toward Splendora, New Caney, Porter, and the outer edges of Conroe. Builders active in these corridors typically offer smaller floor plans, standard (non-premium) lots, and fewer included upgrades at their lowest price points — that's part of how the price stays down, not a sign of lower build quality.
Availability at any specific price point shifts monthly as builders sell out sections and release new ones, and it varies section-by-section within the same community. A number that's accurate this month can be wrong by next quarter.
Specific communities and current base pricing shift monthly as builders release and sell out sections, so rather than list names here that could be stale by the time you read this, the fastest way to get today's actual inventory is to ask directly — see the framework in How Much Is 3.5% Down on a Houston Home? for how the payment side of the math works once a specific home is on the table.
What makes up your real monthly payment
The advertised price on a builder's sign is never your monthly payment. Your total housing payment is typically made up of five pieces: principal and interest on the loan, property taxes, homeowners insurance, HOA dues, and — in many new Houston-area communities — a separate MUD (Municipal Utility District) tax layered on top of the base county and school district rate. Lenders bundle taxes and insurance into an escrow account as part of your monthly payment in most cases, so even though they're not part of your loan itself, they show up on your monthly bill.
Two homes at the identical $290,000 price tag can have meaningfully different monthly payments once you add taxes, HOA, and MUD fees — which is exactly why a price-only comparison between communities can be misleading.
Property taxes and MUD fees: why they vary so much
Texas has no state income tax and relies more heavily on property taxes to fund schools, county services, and local infrastructure than most states. Effective property tax rates around the Houston metro commonly land somewhere in the rough range of 1.5%–2.5% of a home's assessed value per year, depending on which school district, county, city, and special districts apply to that specific address — the range is wide enough that a general average isn't a substitute for checking the actual rate on a specific property.
New construction communities frequently sit inside a Municipal Utility District, a special district that issues bonds to pay for the water, sewer, drainage, and road infrastructure a new neighborhood needs before homes can be built at all. Homeowners repay those bonds through an additional MUD tax rate stacked on top of the base rate — MUD rates commonly run higher in a community's early years (sometimes adding well over $0.50–$1.00 per $100 of value) and gradually decline as the bonds are paid down and the community fills in. This is a big part of why a brand-new community and an established one five miles away can carry noticeably different effective tax rates even at similar home prices.
Because rates are set annually and are specific to each taxing jurisdiction, the only reliable way to know the actual combined rate for a specific address is to check the relevant county appraisal district directly — Harris Central Appraisal District, Liberty County Appraisal District, Chambers County Appraisal District, or Montgomery Central Appraisal District, depending on the property — or ask the builder's sales office for the community's current combined tax rate in writing.
How to model a real payment
To evaluate any specific home the right way, gather these nine numbers before you compare it to anything else: home price, down payment amount, interest rate being offered, loan term, principal & interest, monthly property taxes, monthly homeowners insurance, HOA or MUD dues, and total estimated cash to close. Builders and their preferred lenders can usually provide most of these in writing on request — ask for them in writing, not just verbally, so you can compare communities apples-to-apples.
For the down payment and principal-and-interest side of this math specifically, see the worked price-point tables in How Much Is 3.5% Down on a Houston Home?. Want this run on a specific home you're considering? That's exactly what a consultation is for.
Limitations of this guide
This article explains the general framework for evaluating sub-$300K new construction near Houston and how property taxes and MUD fees work. The specific communities, builders, and worked payment example are intentionally left incomplete until they can be filled in with current, verified numbers rather than estimates presented as fact. This is not a loan quote, tax assessment, or guarantee of home availability at any price. Property taxes, HOA/MUD fees, insurance costs, builder pricing, and loan qualification rules all change and should be confirmed directly with the relevant appraisal district, HOA, insurance provider, lender, and builder before making a decision.
Frequently asked questions
Is $300K realistic for new construction near Houston in 2026?
In the corridors with lower land costs and more available acreage — generally east and northeast of Houston, including Crosby, Dayton, Baytown, Splendora, New Caney, Porter, and parts of Conroe — sub-$300K new construction is more common than in higher land-cost West Houston submarkets. Exact availability shifts month to month as builders release and sell out sections, so treat any specific price as a snapshot, not a guarantee.
What's the difference between a builder's base price and my final purchase price?
The advertised base price usually reflects the smallest floor plan on the builder's least expensive available lot, without upgrades. Lot premiums (corner lots, larger lots, cul-de-sacs, greenbelt views), structural options, and design center selections are added on top and can move the final price meaningfully. Ask for the base price and a realistic "as most buyers configure it" price separately.
Why do MUD taxes look high on new construction compared to nearby resale homes?
New communities built inside a Municipal Utility District (MUD) repay the bonds that funded the neighborhood's water, sewer, drainage, and road infrastructure through an added tax rate on top of the base county and school district rate. That MUD rate is typically highest in a community's early years and gradually declines as the bonds are paid down and more homes are built out and contributing. An older, already-built-out community nearby may show a lower combined rate for that reason.
Primary sources
- Harris Central Appraisal District
- Montgomery County Tax Office
- Texas Department of Housing and Community Affairs
A note on accuracy
Builder pricing, property tax rates, MUD fees, HOA dues, insurance costs, and home availability all change — sometimes weekly. Anything not yet filled in above should be treated as missing, not zero. This is not a loan quote, pre-approval, or offer of credit. Confirm current numbers with the relevant appraisal district, the builder's sales office, and a licensed loan officer before making a decision.