Is DHI (D.R. Horton, Inc.) Halal or Haram?

Based on our AAOIFI-standard shariah screening, DHI is Halal and considered permissible for Muslim investors. It passed all 4 of 4 compliance screens including business activity review, debt-to-market-cap ratio (13.67% vs ≤33% threshold), interest income ratio (0.00% vs ≤5% threshold), and cash & securities ratio (6.77% vs ≤33% threshold).

D.R. Horton, Inc. is one of the largest homebuilding companies in the United States, operating across 31 states and 98 markets. The company acquires land and constructs single-family detached homes, townhomes, and duplexes under well-known brands like America's Builder, Express Homes, and Emerald Homes. For Muslim investors, D.R. Horton represents a Halal investment opportunity within the residential construction industry. The stock successfully passes all four AAOIFI shariah screens, meaning its core business activities and financial structures align with Islamic finance principles. From an Islamic finance perspective, DHI exhibits strong financial health with a low Debt to Market Cap ratio of 13.7%, comfortably below the 33% threshold. Additionally, the company's interest income accounts for 0.00% of its total revenue, demonstrating minimal reliance on haram interest-generating activities despite its massive scale. While the primary homebuilding business is highly permissible, Muslim investors should monitor the company's in-house mortgage financing and title insurance segments. Although these conventional financial services currently remain well below the 5% non-compliant revenue limit, any significant expansion in this area could impact future shariah compliance. D.R. Horton, Inc. operates in the Consumer Cyclical sector under the Residential Construction industry and is headquartered in Arlington, TX, US. The company is led by CEO Paul J. Romanowski and employs approximately 14,766 people.

DHI was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. DHI passed 4 of these 4 screens.

DHI has negligible interest income, so purification may not be necessary. However, it is always advisable to consult a qualified scholar regarding your specific investment situation.

DHI was last screened on 2026-04-29. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.