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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
The 30% rule — spending no more than 30% of gross income on housing — is the most widely cited benchmark for affordability. On a $40K salary, 0 cities (0%) meet this threshold. That's a tough market. We ran the numbers on 40 cities in Texas using 2026 census, rent, and salary data. Amarillo comes ou…
#1 Ranked: Amarillo — cost index 73, rent $1,245/mo, income $62,469
0 of 40 cities keep rent under 30% of $40K
0 of 40 cities keep rent under 30% of $40K gross income
Data sourced from Census Bureau, Zillow, BLS, and Tax Foundation — current as of 2026
| City | State Tax | Sales Tax | Property Tax | Est. Take-Home |
|---|---|---|---|---|
1Amarillo | 0% | 8.19% | 1.6% | $32,372 |
2Mcallen | 0% | 8.19% | 1.6% | $32,372 |
3Beaumont | 0% | 8.19% | 1.6% | $32,372 |
4Killeen | 0% | 8.19% | 1.6% | $32,372 |
5Tyler | 0% | 8.19% | 1.6% | $32,372 |
6Pasadena | 0% | 8.19% | 1.6% | $32,372 |
7Laredo | 0% | 8.19% | 1.6% | $32,372 |
8San Antonio | 0% | 8.19% | 1.6% | $32,372 |
9Waco | 0% | 8.19% | 1.6% | $32,372 |
10Lubbock | 0% | 8.19% | 1.6% | $32,372 |
The 30% rule — spending no more than 30% of gross income on housing — is the most widely cited benchmark for affordability. On a $40K salary, 0 cities (0%) meet this threshold. That's a tough market. We ran the numbers on 40 cities in Texas using 2026 census, rent, and salary data. Amarillo comes out on top — here's the full ranking and analysis.
Amarillo earns its position at #1 through a combination that's hard to replicate. The 73 cost index sits 38 points below the national baseline, and the $62,469 median income means purchasing power here is amplified by the low cost base. Homes list at $202,835 — $264,535 below the national median — a genuine ownership opportunity. On the cost side, Housing leads the way at 73, while Healthcare trails at 95.
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 (that's pre-tax, of course).
The 30% rule — spending no more than 30% of gross income on housing — is the most widely cited benchmark for affordability. On a $40K salary, 0 cities (0%) meet this threshold. That's a tough market.
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
What does daily life actually cost in Amarillo? Start with the 24% rent-to-income ratio — that's the kind of margin that lets people build savings. On the category level, Housing (index 73) is where the real savings show up, while Healthcare (index 95) is the line item most likely to surprise newcomers. Income at $62,469 and homes at $202,835 round out a profile that ranks #1 for clear reasons.
146,593 residents · Texas
Dive into Mcallen's numbers: cost index 74 — we had to double-check this one — (37 points below national average), rent $1,272/month, income $60,165, and a home price of $225,568. The city's cost profile isn't flat — Housing is the cheapest category at 74, while Healthcare runs 95. With 146,593 residents, it balances mid-size city convenience with manageable costs (that's pre-tax, of course).
112,193 residents · Texas
Here's Beaumont by the numbers — and there's a lot to like (and a little to watch). Cost index: 74. Rent: $1,275/month. Income: $57,530/year. Home price: $165,122. Population: 112,193. The strongest category is Housing at 74; the most expensive is Healthcare at 95. Translate that rent to annual numbers, and residents are saving renters $7,440 per year vs. the national median. Over a five-year window, that difference is life-changing.
159,643 residents · Texas
The #4 spot goes to Killeen, and the breakdown explains why. 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
Dive into Tyler's numbers: cost index 75 (36 points below national average), rent $1,290/month, income $65,527, and a home price of $248,536. The city's cost profile isn't flat — Housing is the cheapest category at 75, while Healthcare runs 95. With 110,327 residents, it balances mid-size city convenience with manageable costs.
Amarillo ranks #1 in Texas for this analysis with a cost index of 73 and median income of $62,469.
Yes. On a $40K salary in Amarillo, rent would consume about 37% of your gross monthly income. Financial experts recommend keeping rent under 30%. It's tight — consider a roommate or nearby suburb.
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.
After federal taxes, FICA (7.65%), and 0% state income tax, estimated take-home on $40K in Amarillo is approximately $32,372/year ($2,698/month). After median rent of $1,245/month, you'd have roughly $17,432/year for all other expenses.
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.