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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 0 points on the cost index. Laredo, Amarillo, Killeen, Mcallen, Pasadena are all within striking distance. At this margin, secondary factors — taxes, rent trends, category-specific costs — become the tiebreakers…
#1 Ranked: Laredo — cost index 77, rent $1,327/mo, income $63,264
Top 5 separated by only 0 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 0 points on the cost index. Laredo, Amarillo, Killeen, Mcallen, Pasadena are all within striking distance. At this margin, secondary factors — taxes, rent trends, category-specific costs — become the tiebreakers. Here's the full breakdown.
Laredo earns its position at #1 through a combination that's hard to replicate. The 77 cost index sits 34 points below the national baseline, and the $63,264 median income means purchasing power here is amplified by the low cost base. Homes list at $217,648 — $249,722 below the national median — a genuine ownership opportunity. On the cost side, Housing leads the way at 77, while Healthcare trails at 95.
The healthcare sub-index is derived from overall cost of living with regional BLS price adjustments. A score of 95 (the top-10 average here) means healthcare costs are about 5% below the national median. Laredo leads at 95, followed by Amarillo (95) and Killeen (95). Note: a low healthcare index doesn't guarantee a low overall cost — check the full cost breakdown table below.
If you're ready to act on this, three things to do next: 1) Click into the city pages for the top 3 and check rent trends — direction matters more than the snapshot. 2) Run your income through the salary calculator for a personalized cost comparison. 3) Compare your top two picks head-to-head on our comparison page. The data is here; the decision is yours.
257,602 residents · Texas
At $1,327/month for rent and a cost index of 77, Laredo is pretty much what you'd expect from a mid-size city in this part of the country. Income is $63,264. Take it or leave it — the data is what it is.
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 #2 for clear reasons.
159,643 residents · Texas
Real talk: at $1,280/month for rent and a cost index of 75, Killeen is pretty much what you'd expect from a mid-size city in this part of the country. Income is $58,339. That tracks.
146,593 residents · Texas
Here's Mcallen by the numbers — and there's a lot to like (and a little to watch). Cost index: 74. Rent: $1,272/month. Income: $60,165/year. Home price: $225,568. Population: 146,593. 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 $7,476 per year vs. the national median. This is worth factoring into any relocation decision.
133,560 residents · Texas
So, Pasadena. Cost index of 77, rent at $1,318/month. It's lower than the national average. Median income is $64,270, which is below the national median. It's fine. Not great, not bad.
Cities are ranked by their healthcare cost sub-index within Texas. Each sub-index is derived from the overall cost of living with regional adjustment factors. 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.
Laredo ranks #1 in Texas for this analysis with a cost index of 77 and median income of $63,264.
Laredo, TX has the lowest healthcare index at 95, compared to the national average of 100.
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.
Laredo (ranked #1) has a cost index of 77 and rent of $1,327/mo, while Sugar Land (ranked #40) has a cost index of 116 and rent of $1,990/mo — a 39-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 Laredo is $1,327/month as of 2026, based on Zillow's Observed Rent Index. This is $568 below the national median of $1,895/month.
The median home price in Laredo is $217,648, which is 3.4× 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.