Is My Property USDA-Eligible?
The first question on every USDA inquiry. The USDA Rural Development eligibility map (eligibility.sc.egov.usda.gov) is the official source of truth. Type in a specific street address and you get a clear yes-or-no answer.
The short version for Houston. Most of the City of Houston is not eligible. Most of Harris County inside Beltway 8 is not eligible. Almost all of the established inner suburbs (Bellaire, West U, Memorial, the Heights, Sugar Land proper, Pearland proper) are excluded.
What is generally eligible around Houston:
- Magnolia (77354, 77355). Most of Magnolia is USDA-eligible, including communities in High Meadow Ranch, Lake Windcrest, and surrounding rural pockets.
- Tomball (outer 77375, 77377). Sections outside the Tomball city core, particularly to the north and west, are eligible.
- Hockley and Waller (77447, 77484). Largely eligible.
- Cypress (outer sections of 77433, 77429). Mixed. Properties closer to the Grand Parkway and further out are more likely eligible than properties closer to Beltway 8.
- Cleveland and Splendora (77327, 77372). Largely eligible in Liberty and Montgomery Counties.
- Dayton and Wallisville (77535). Largely eligible, popular among USDA buyers heading east of Houston.
- Liberty and parts of Liberty County. Largely eligible.
- Sealy, Brookshire, Pattison (Waller County and west). Largely eligible.
We confirm eligibility on every specific address before you write an offer. A neighborhood may be mostly eligible with a few excluded streets, or mostly excluded with a few eligible pockets. The map is parcel-level precise.
Rate disclaimer: Rates shown for illustrative purposes. Your actual rate depends on credit score, LTV, DTI, loan amount, and program. Subject to change daily.
Income Limits
USDA Section 502 Guaranteed Loans set income limits at 115% of area median income (AMI), calculated by county and household size. The 2026 limits for Houston-area counties run roughly:
| County | 1-4 Person Household | 5-8 Person Household |
|---|---|---|
| Harris County | $122,800 | $162,150 |
| Montgomery County | $122,800 | $162,150 |
| Liberty County | $112,450 | $148,450 |
| Waller County | $122,800 | $162,150 |
| Chambers County | $122,800 | $162,150 |
| Brazoria County | $122,800 | $162,150 |
The income calculation includes total household income, not just the borrower. A non-borrowing spouse, a working adult child, or a roommate on the lease all count toward the household total. There are limited deductions for child care, disabled household members, and similar adjustments.
Self-employed buyers should expect USDA to use a two-year average of net income from tax returns, similar to FHA and conventional.
USDA vs FHA in Houston
Both programs target buyers with limited down payment and flexible credit. Side by side:
| Feature | USDA | FHA |
|---|---|---|
| Down payment | 0% | 3.5% |
| Minimum credit (typical) | 640 | 580 (3.5% down) or 500 (10% down) |
| Upfront fee | 1% guarantee fee | 1.75% UFMIP |
| Annual fee | 0.35% | 0.55% (low LTV) to 0.85%+ (high LTV) |
| Geographic restrictions | USDA-eligible areas only | None |
| Income limits | Yes (115% AMI) | No |
| Property condition standards | Strict (USDA appraiser) | Moderate (FHA appraiser) |
| Loan limits | None on guaranteed program (based on income) | $524,225 in Harris County (2025) |
For an eligible USDA property with an income-qualifying buyer, USDA typically beats FHA on monthly cost because of the lower annual fee (0.35% vs 0.55%+) and zero down payment. The trade-off is the geographic restriction and the income cap.
What USDA Doesn't Cover
The eligibility map is parcel-level specific, but the broad pattern around Houston is clear. USDA does not cover:
- The City of Houston proper
- Most of Harris County inside Beltway 8
- Inside the Loop neighborhoods (Heights, Montrose, Rice Military, Bellaire, West U, Memorial)
- The established inner suburbs of Sugar Land, Pearland, Friendswood, Webster, Pasadena
- Most of Katy ISD inside the Grand Parkway
- The Woodlands proper (though some surrounding areas qualify)
A buyer with their heart set on a specific Houston neighborhood inside Beltway 8 is not a USDA candidate, regardless of income or credit. The geography is the binding constraint. For those buyers, FHA, conventional, or VA are the natural alternatives. See FHA loans Houston for the most common substitute.
The Process
USDA closings move at roughly the same pace as FHA or conventional, with one extra step: a USDA underwriting review on top of the lender's underwriting. The timeline:
- Pre-approval (Day 1 to 3). We confirm income eligibility, credit, and run a USDA pre-qualification through the Guaranteed Underwriting System (GUS).
- Property eligibility check (Day 1, ongoing). We verify each specific address against the USDA Rural Development eligibility map before you write an offer.
- Contract and contract docs (Day 1 to 7). Standard TREC contract. Inspection period runs normally.
- Appraisal and lender underwriting (Day 10 to 25). USDA has slightly stricter property condition standards than FHA. The appraiser will note any required repairs.
- USDA approval (Day 25 to 35). The lender submits the file to USDA's underwriting overlay for final approval. This step is unique to USDA and adds 5 to 10 days.
- Clear to close and funding (Day 35 to 45). Closing at title, keys at the table.
Total timeline runs 35 to 45 days, slightly longer than FHA or conventional. Plan your purchase contract accordingly.
Bundle eligible. The InSync Bundle ($7,500 back at closing) applies to USDA buyers who pair their real estate purchase with their mortgage through InSync. Combined lender credit plus commission rebate. Available on all USDA-eligible properties.
Ben Helstein | NMLS# 1577314 | InSync Homes & Loans | Equal Housing Opportunity