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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 1 points on the cost index. And with some exceptions, houston, San Antonio, Dallas, Austin, Fort Worth are all within striking distance. At this margin, secondary factors — taxes, rent trends, category-specific …
#1 Ranked: Houston — cost index 90, rent $1,542/mo, income $62,894
Top 5 separated by only 1 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
| City | State Tax | Sales Tax | Property Tax | Est. Take-Home |
|---|---|---|---|---|
1Houston | 0% | 8.19% | 1.6% | $49,193 |
2San Antonio | 0% | 8.19% | 1.6% | $49,193 |
3Dallas | 0% | 8.19% | 1.6% | $49,193 |
4Austin | 0% | 8.19% | 1.6% | $49,193 |
5Fort Worth | 0% | 8.19% | 1.6% | $49,193 |
6El Paso | 0% | 8.19% | 1.6% | $49,193 |
7Arlington | 0% | 8.19% | 1.6% | $49,193 |
8Corpus Christi | 0% | 8.19% | 1.6% | $49,193 |
9Plano | 0% | 8.19% | 1.6% | $49,193 |
10Lubbock | 0% | 8.19% | 1.6% | $49,193 |
This is one of the closest races in our database: the top 5 cities are separated by just 1 points on the cost index. And with some exceptions, houston, San Antonio, Dallas, Austin, Fort Worth are all within striking distance. At this margin, secondary factors — taxes, rent trends, category-specific costs — become the tiebreakers. Here's the full breakdown (that's pre-tax, of course).
Real talk: So, Houston. Cost index of 90, rent at $1,542/month. It's lower than the national average. Median income is $62,894, which is below the national median. That's more or less in line with the region.
Tax burden isn't just income tax. We combine three layers: state income tax (0% in Houston), combined state+local sales tax (8.19%), and effective property tax (1.6%). Texas has no state income tax — a significant advantage that keeps more of every paycheck. On a $75,000 — worth pausing on — salary, the estimated take-home in #1 Houston is $57,710/year.
The data doesn't lie, but it does surprise: Top 5 separated by only 1 points. And roughly speaking, the race is tight: Houston, San Antonio, Dallas, Austin, Fort Worth are all within 1 points of each other. At this level, differences in rent, taxes, or a single category can sway the decision. That's not a marginal difference — it reshapes your monthly budget.
That said, Across Texas, the average cost of living index is 90 — 21 points below the national median. Known for no income tax, massive metros, and wide-open affordability, the state offers 40 tracked cities with median rents averaging $1,536/month — and that's before you even look at taxes — . That's $359 less than the national average of $1,895. If you're debt-free, those savings go straight to building wealth.
Bottom line: Houston 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.
2,314,157 residents · Texas
Why Houston ranks #1: the numbers tell a clear story. At 90 on the cost index, residents save roughly 21% less than the typical American. Rent sits at $1,542/month — which, honestly, is lower than you'd expect here — while the median household pulls in $62,894/year. The Housing category is particularly strong at 90, though Healthcare (98) lags behind. It's fine. Not great, not bad. Home prices average $261,976 — $205,394 below the national median.
1,495,295 residents · Texas
Why San Antonio ranks #2: the numbers tell a clear story. At 79 on the cost index, residents save roughly 32% less than the typical American. Rent sits at $1,361/month while the median household pulls in $62,917/year. The Housing category is particularly strong at 79, though Healthcare (96) lags behind. Home prices average $247,132 — $220,238 below the national median.
1,302,868 residents · Texas
Why Dallas ranks #3: the numbers tell a clear story. At 93 on the cost index, residents save roughly 18% less than the typical American. Rent sits at $1,591/month — for better or worse — while the median household pulls in $67,760/year. The Housing category is particularly strong at 93, though Healthcare (99) lags behind. Home prices average $305,523 — $161,847 below the national median.
979,882 residents · Texas
In plain English: What does daily life actually cost in Austin? Start with the 20% rent-to-income ratio — that's the kind of margin that lets people build savings. And most of the time, on the category level, Housing (index 89) is where the real savings show up, while Healthcare (index 98) is the line item most likely to surprise newcomers. Income at $91,461 and homes at $500,627 round out a profile that ranks #4 for clear reasons.
978,468 residents · Texas
Here's Fort Worth by the numbers — and there's a lot to like (and a little to watch). Cost index: 91. Rent: $1,554/month — for better or worse — . Income: $76,602/year. Home price: $295,822. Population: 978,468. The strongest category is Housing at 91; the most expensive is Healthcare at 98. Translate that rent to annual numbers, and residents are saving renters $4,092 per year vs. the national median. This is where the math gets real for actual people.
Cities are ranked by effective property tax rate within Texas. Property taxes can vary significantly between municipalities even within the same state due to local levies, school districts, and assessment practices. 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.
Houston ranks #1 in Texas for this analysis with a cost index of 90 and median income of $62,894.
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.
Houston (ranked #1) has a cost index of 90 and rent of $1,542/mo, while Conroe (ranked #40) has a cost index of 89 and rent of $1,524/mo — a 1-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 Houston is $1,542/month as of 2026, based on Zillow's Observed Rent Index. This is $353 below the national median of $1,895/month.
The median home price in Houston is $261,976, which is 4.2× the local median income. It's on the edge of affordability for median-income households. 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.