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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
This is one of the closest races in our database: the top 5 cities are separated by just 2 points on the cost index. Amarillo, Mcallen, Beaumont, Killeen, Tyler are all within striking distance. At this margin, secondary factors — taxes, rent trends, category-specific costs — become the tiebreakers.…
#1 Ranked: Amarillo — cost index 73, rent $1,245/mo, income $62,469
Top 5 separated by only 2 points
39 of 40 cities come in below the national cost-of-living average of 111
Data sourced from Census Bureau, Zillow, BLS, and Tax Foundation — current as of 2026
This is one of the closest races in our database: the top 5 cities are separated by just 2 points on the cost index. Amarillo, Mcallen, Beaumont, Killeen, Tyler are all within striking distance. At this margin, secondary factors — taxes, rent trends, category-specific costs — become the tiebreakers. Here's the full breakdown.
Here's Amarillo by the numbers — and there's a lot to like (and a little to watch). Cost index: 73. Rent: $1,245/month. Income: $62,469/year. Home price: $202,835. Population: 202,408. The strongest category is Housing at 73; the most expensive is Healthcare at 95. Translate that rent to annual numbers, and residents are saving renters $7,800 per year vs. the national median. On a teacher's salary, this difference is the line between paycheck-to-paycheck and comfortable.
In plain English: Rent data is sourced from Zillow's Observed Rent Index (ZORI), which tracks the median rent across all active listings — not just new leases. This gives a more representative and stable signal than asking prices alone. Amarillo: $1,245/mo, Mcallen: $1,272/mo, Beaumont: $1,275/mo. The cheapest city here is $650 under the national median — that's $7,800/year in savings on rent alone.
Top 5 separated by only 2 points. The race is tight: Amarillo, Mcallen, Beaumont, Killeen, Tyler are all within 2 points of each other. At this level, differences in rent, taxes, or a single category can sway the decision. If you're debt-free, those savings go straight to building wealth.
What's equally notable: Here's the state-level backdrop: Texas averages a 90 cost index, $1,536/mo rent, and $79,780 income across 40 cities. That's $359 less than the national rent average. No income tax, massive metros, and wide-open affordability — and that context shapes every city in this ranking.
Bottom line: Amarillo leads this ranking for clear, data-backed reasons — but the "best" city depends on your priorities. Click into any city below to see the full detail page with 12-month trend charts, profession-specific salary data, and a breakdown of all five cost categories. If you're seriously considering a move, use our salary calculator to model your specific income against these numbers.
The race is tight: Amarillo, Mcallen, Beaumont, Killeen, Tyler are all within 2 points of each other. At this level, differences in rent, taxes, or a single category can sway the decision.
Rent in #1-ranked Amarillo has increased from $1,204 to $1,245/mo over the past 12 months — a 3% increase. Rising costs may erode its top ranking over time.
Amarillo (index 73) and Sugar Land (index 116) sit 43 points apart on the cost index — proof that Texas is far from monolithic in affordability.
202,408 residents · Texas
Dive into Amarillo's numbers: cost index 73 — which, honestly, is lower than you'd expect here — (38 points below national average), rent $1,245/month, income $62,469, and a home price of $202,835. The city's cost profile isn't flat — Housing is the cheapest category at 73, while Healthcare runs 95. With 202,408 residents, it balances mid-size city convenience with manageable costs (not adjusted for inflation, but still telling).
146,593 residents · Texas
What does daily life actually cost in Mcallen? Start with the 25% rent-to-income ratio — tight but manageable for most households. On the category level, Housing (index 74) is where the real savings show up, while Healthcare (index 95) is the line item most likely to surprise newcomers. Income at $60,165 — which, honestly, is lower than you'd expect here — and homes at $225,568 round out a profile that ranks #2 for clear reasons.
112,193 residents · Texas
Dive into Beaumont's numbers: cost index 74 (37 points below national average), rent $1,275/month, income $57,530, and a home price of $165,122. The city's cost profile isn't flat — Housing is the cheapest category at 74, while Healthcare runs 95. With 112,193 residents, it balances mid-size city convenience with manageable costs.
159,643 residents · Texas
Real talk: the #4 spot goes to Killeen, and the breakdown explains why. And for the typical household, renters here pay $1,280/month — saving renters $7,380 per year compared to the national average. Meanwhile, Housing is the standout at index 75, making it one of the cheapest in the country for that category. The weak spot? Healthcare at 95. A 26% rent-to-income ratio keeps most households inside the safe zone.
110,327 residents · Texas
Why Tyler ranks #5: the numbers tell a clear story. At 75 on the cost index, residents save roughly 36% less than the typical American. Rent sits at $1,290/month while the median household pulls in $65,527/year. The Housing category is particularly strong at 75, though Healthcare (95) lags behind. Home prices average $248,536 — $218,834 below the national median.
Cities are ranked by median 1-bedroom rent in ascending order using Zillow's Observed Rent Index (ZORI). We include all tracked cities in Texas with verified rent data, giving you a complete picture of the rental landscape from cheapest to most expensive. All data is sourced from federal agencies and verified research institutions. Cost of living indices are normalized to 100 (national median) using Zillow rent as the primary signal, with sub-category adjustments derived from regional BLS price data. Rankings are updated monthly as new data is released.
Amarillo ranks #1 in Texas for this analysis with a cost index of 73 and median income of $62,469.
Our cost of living index uses real Zillow rent data as the foundation, indexed to 100 (national median). Sub-categories (housing, food, transport, utilities, healthcare) are derived from the overall index with regional adjustments. Data is updated monthly.
Amarillo (ranked #1) has a cost index of 73 and rent of $1,245/mo, while Sugar Land (ranked #40) has a cost index of 116 and rent of $1,990/mo — a 43-point difference in cost of living.
City data is refreshed monthly from Census Bureau population estimates, Zillow rent and home price indices, BLS salary data, and Tax Foundation tax rates. Last updated: 2026.
The median 1-bedroom rent in Amarillo is $1,245/month as of 2026, based on Zillow's Observed Rent Index. This is $650 below the national median of $1,895/month.
The median home price in Amarillo is $202,835, which is 3.2× the local median income. That's within the standard 3.5× affordability rule for most local earners. The national median home price is $467,370.
Texas has a 0% state income tax rate — one of the states with no income tax. Combined state and local sales tax averages 8.19%, and the effective property tax rate is 1.6%.
This ranking was generated using data current as of early 2026. Population and income data comes from the Census Bureau's American Community Survey (5-year estimates). Rent and home price data is from Zillow's monthly releases. Tax rates are from the Tax Foundation's 2025 edition. Rankings are refreshed monthly.