Katy Homes for Sale Under $500,000

In Katy, $500,000 is above the typical sale price of about $346,000, so a search under $500,000 covers most of the market. The map below shows current listings, and the notes here cover what to compare once you have a short list.

What to compare on a Katy home under $500,000

Katy homes run from 1990s houses in Cinco Ranch, with mature trees and community pools, lakes and trails, to brand-new homes in Elyson, Sunterra and Cane Island, plus older homes near Old Town Katy. Most communities have HOAs and MUD taxes, so two homes at the same price can carry very different tax rates and dues; compare the total rate on each home's tax certificate.

On a resale home, ask the age of the roof, HVAC system and water heater, and use your option period for a full inspection. Some Katy-area neighborhoods lie within the Addicks and Barker reservoir flood pools, so look up each address on the FEMA Flood Map Service Center and read the flood section of the seller's disclosure notice.

Prices and how we help

Across all home types, 6,118 closed MLS sales with Katy addresses from October 2025 through September 2026 had a typical price near $346,000 and an average near $414,000. We help you prepare a strong offer, plan the option period and line up the inspection.

FAQ: Katy homes under $500,000

How much do property taxes add on a Katy home under $500,000?

It depends on the community and the county. Typical totals with a MUD run about 2.8 to 3.5 percent of value in Harris County and 2.8 to 3.3 percent in Fort Bend County, according to HAR figures cited in our Katy guide. On a $450,000 home, 2.8 to 3.5 percent is about $12,600 to $15,750 a year before exemptions. A homestead exemption takes $140,000 off the value for school taxes, but MUDs often offer no general exemption. Use the rate on the tax certificate and our mortgage calculator's MUD toggle, and confirm exemptions with a tax professional.

What should I inspect on a resale home in Katy?

Ask the age of the roof, HVAC system and water heater, and use the option period for a full inspection. Older neighborhoods usually have mature trees and established MUDs, and MUD rates often drop as a district pays down its bonds, so ask for the MUD notice and look at the rate history. Pull the full tax rate for the address, not just the school district, and read the HOA resale certificate for dues, special assessments and known violations.

How does the option period work on a Katy purchase?

Paragraph 5 of the Texas resale contract lets you pay an option fee for the unrestricted right to terminate within a negotiated number of days. In our Houston transactions 7 to 10 days is typical and the fee is a few hundred dollars, credited to the price at closing. If you terminate on time, the seller keeps the option fee and your earnest money is refunded. Use the days for the inspection, insurance quotes, the MUD notice, HOA documents and flood-map research.

Sources

  1. Compean Group analysis of closed MLS sales, October 2025 to September 2026, homes with Katy addresses (postal city Katy, TX), all property types; typical price is the median of the 12 monthly medians. Checked October 30, 2026.
  2. Compean Group, Katy neighborhood guide, October 2026: communities, counties, MUD and HOA notes, reservoirs and tax components, including HAR's typical total rates with a MUD. Checked October 30, 2026.
  3. Texas Comptroller, Property Tax Exemptions ($140,000 school-tax homestead exemption) and Tax Code Section 23.23 (10 percent annual cap on a homestead's appraised value). Checked October 30, 2026.
  4. Compean Group, MUD and PID Taxes Around Houston (October 29, 2026): why MUD rates fall as bonds are paid down and which districts offer homestead exemptions. Checked October 30, 2026.
  5. Compean Group, The Option Period in a Texas Home Purchase (October 29, 2026): how the option period works and typical lengths and fees in our Houston transactions. Checked October 30, 2026.
  6. Texas Water Code Section 49.452: MUD notice to purchasers before a binding contract, with a signed copy recorded at closing. Checked October 30, 2026.
  7. FEMA Flood Map Service Center: official flood maps by address. Checked October 30, 2026.

Related

Call or text (832) 777-3904, email evan@thecompeangroup.com, or use the contact page. We speak English and Spanish. Our office is at 802 W. Patton St, Houston, TX 77009.

Updated October 30, 2026.