Area guide · Gillespie County, Texas
Buying a home in Fredericksburg
Fredericksburg has some of the lowest property taxes in the area, and unlike the towns closer to San Antonio, much of it qualifies for USDA's $0-down loan. Here are the 2026 rates, a worked example, and how I'd finance a home, a weekend place or a rental.
The area at a glance
Fredericksburg is the seat of Gillespie County in the Hill Country, about 70 miles northwest of San Antonio. Most homes in and around town are in Fredericksburg ISD.
Buying here usually means one of three things: a home to live in full time, a weekend place, or a rental. Each one is financed differently, so I cover all three below.
2026 tax rates
These are the 2026 rates before exemptions for a home in Fredericksburg ISD:
| Taxing unit | Inside city limits | Outside city limits |
|---|---|---|
| Fredericksburg ISD | 0.7731% | 0.7731% |
| Gillespie County | 0.2770% | 0.2770% |
| City of Fredericksburg | 0.244342% | None |
| Water districts | 0.005594% | 0.005594% |
| Combined | 1.30% | 1.06% |
Water districts are the Hill Country Underground Water Conservation District (0.0054%) and the Gillespie County WCID (0.000194%), per the Gillespie Central Appraisal District's 2026 rates. A few areas pay more, such as Friendship Oaks (Gillespie County MUD #1) and the Stonewall WCID.
For comparison, a home inside San Antonio city limits runs about 2.30% to 2.51%. See my Bexar County guide for those rates.
A worked example
Take a $300,000 home inside Fredericksburg city limits, appraised at its price:
- Without a homestead exemption: about $3,900 a year.
- With the state's $140,000 school exemption: about $2,818 a year, or roughly $235 a month.
Outside city limits, the same home comes to about $2,085 a year with the school exemption. These figures only count the state school exemption. Any extra county or city homestead exemption lowers them a little more, and the Gillespie Central Appraisal District can tell you which ones apply.
A weekend home or rental doesn't get a homestead exemption, so for those, plan on the full rate. My affordability calculator includes taxes when it estimates your price range.
Exemptions that lower your bill
- General homestead for your primary home: $140,000 off for school taxes, statewide.
- Age 65 or older or disabled: an extra $60,000 off for school taxes, and your school taxes are frozen at the level of the year you qualify.
- Disabled veterans can get a partial exemption, or a full exemption at a 100% rating. My VA guide explains how.
Only the home you live in qualifies. You apply once with the appraisal district, it's free, and you don't need to pay anyone to file it for you.
Which loans fit here
- USDA loans: $0 down, and when I checked in November 2026, Fredericksburg and the areas around it were eligible. You have to fit Gillespie County's income limit and live in the home. My USDA guide explains the rules.
- FHA loans: the 2026 limit for a single-family home in Gillespie County is $541,287, a little lower than Bexar County's. See my FHA guide.
- Conventional loans: as little as 3% down for a home you'll live in, with a 2026 limit of $832,750. See my conventional guide.
- VA loans: $0 down for eligible buyers on a home you'll live in. See my VA guide.
Weekend homes and rentals
USDA, FHA and VA are only for a home you'll live in. For anything else:
- A weekend home you use yourself: a conventional second-home loan, often with 10% down.
- A rental or guesthouse: a DSCR loan qualifies you on the property's rent instead of your income. If you're self-employed and buying a home to live in, a bank statement loan may fit better.
If you plan to rent by the night, check the City of Fredericksburg's short-term rental rules before you make an offer. They can decide whether a home works as a rental at all.
Looking at more than one town? My areas page compares rates across the places I work most.
Common questions
What is the property tax rate in Fredericksburg, TX?
For 2026, a home inside Fredericksburg city limits in Fredericksburg ISD adds up to about 1.30% of its taxable value before exemptions. Outside city limits it's about 1.06%. Both are far below San Antonio's 2.30% to 2.51%.
Can I get a USDA loan in Fredericksburg?
In many cases, yes. When I checked USDA's map in November 2026, Fredericksburg itself and the areas around it were eligible. You still have to fit Gillespie County's income limit and buy a home you'll live in, so I check both for your exact address and household.
What is the FHA loan limit in Gillespie County?
For 2026, the FHA limit for a single-family home in Gillespie County is $541,287. The conventional limit is $832,750, the same as everywhere in Texas.
Can I finance a weekend home or a rental in Fredericksburg?
Yes. A second home you use yourself can be financed with a conventional loan, often with 10% down. For a property you'll rent out, a DSCR loan qualifies you on the rent it brings in. Check the City of Fredericksburg's short-term rental rules before you buy.
Want me to run your numbers?
I'll compare lenders and show you what you'd pay. No cost to talk.
Applying takes 10–15 minutes online. I usually pull credit within 24 hours, unless you'd like me to wait.
Stuck on a term? See the plain-English mortgage glossary.
Sources
- Gillespie Central Appraisal District: 2026 tax rates
- Gillespie Central Appraisal District
- HUD: FHA mortgage limits lookup
- Homebuyer.com: 2026 loan limits for Gillespie County, Texas
- USDA property eligibility map
- Texas Comptroller: Property tax exemptions
This guide is general education, not a loan offer or legal or tax advice. Program rules, fees and limits change; I check them against the sources above when this page is reviewed. Eligibility depends on your situation, and not all applicants will qualify.