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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 $150K salary, 40 cities (100%) meet this threshold. You've got plenty of choices. We ran the numbers on 40 cities in Texas using 2026 census, rent, and salary data. Amaril…
The 30% rule — spending no more than 30% of gross income on housing — is the most widely cited benchmark for affordability. On a $150K salary, 40 cities (100%) meet this threshold. You've got plenty of choices. 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.
On a $150K salary, the key number is $3,750/month — that's 30% of gross, the standard affordability line. Amarillo ($1,245/mo, 10%), Mcallen ($1,272/mo, 10%), Beaumont ($1,275/mo, 10%) all clear that bar. After federal tax, FICA (7.65%), and state income tax, estimated take-home ranges from $109,483 to $109,483/year across these top picks.
The #1 spot goes to Amarillo, and the breakdown explains why. Renters here pay $1,245/month — saving renters $7,800 per year compared to the national average. Meanwhile, Housing is the standout at index 73, making it one of the cheapest in the country for that category. The weak spot? Healthcare at 95. At a 24% rent-to-income ratio, there's genuine breathing room in the average household budget.
40 of 40 cities keep rent under 30% of $150K. And in practical terms, the 30% rule — spending no more than 30% of gross income on housing — is the most widely cited benchmark for affordability. On a $150K salary, 40 cities (100%) meet this threshold. You've got plenty of choices.
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. Can we talk about how broken the conversation around affordability is? A city gets labeled 'cheap' and suddenly everyone assumes there's a catch — bad schools, no jobs, nothing to do. But look at the income numbers here. Look at the cost categories. This isn't a budget consolation prize. It's a genuine alternative to the coastal rat race, and the data makes that case more convincingly than any think piece.
#1 Ranked: Amarillo — cost index 73, rent $1,245/mo, income $62,469
40 of 40 cities keep rent under 30% of $150K
40 of 40 cities keep rent under 30% of $150K gross income
Data sourced from Census Bureau, Zillow, BLS, and Tax Foundation — current as of 2026
202,408 residents · Texas
Real talk: the #1 spot goes to Amarillo, and the breakdown explains why. And as far as the data shows, renters here pay $1,245/month — saving renters $7,800 per year compared to the national average. Meanwhile, Housing is the standout at index 73, making it one of the cheapest in the country for that category. The weak spot? Healthcare at 95. At a 24% rent-to-income ratio, there's genuine breathing room in the average household budget.
146,593 residents · Texas
The #2 spot goes to Mcallen, and the breakdown explains why. Renters here pay $1,272/month — saving renters $7,476 per year compared to the national average. Meanwhile, Housing is the standout at index 74, making it one of the cheapest in the country for that category. The weak spot? Healthcare at 95. A 25% rent-to-income ratio keeps most households inside the safe zone.
112,193 residents · Texas
Why Beaumont ranks #3: the numbers tell a clear story. At 74 on the cost index, residents save roughly 37% less than the typical American. Rent sits at $1,275/month while the median household pulls in $57,530/year. The Housing category is particularly strong at 74, though Healthcare (95) lags behind. About what you'd guess. Home prices average $165,122 — $302,248 below the national median.
159,643 residents · Texas
Why Killeen ranks #4: the numbers tell a clear story. And for the typical household, at 75 on the cost index, residents save roughly 36% less than the typical American. Rent sits at $1,280/month while the median household pulls in $58,339/year. The Housing category is particularly strong at 75, though Healthcare (95) lags behind. Home prices average $218,425 — $248,945 below the national median.
110,327 residents · Texas
Why Tyler ranks #5: the numbers tell a clear story. That alone makes it worth considering. 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.
The 30% rule — spending no more than 30% of gross income on housing — is the most widely cited benchmark for affordability. On a $150K salary, 40 cities (100%) meet this threshold. You've got plenty of choices.
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.
| City | State Tax | Sales Tax | Property Tax | Est. Take-Home |
|---|---|---|---|---|
1Amarillo | 0% | 8.19% | 1.6% | $109,483 |
2Mcallen | 0% | 8.19% | 1.6% | $109,483 |
3Beaumont | 0% | 8.19% | 1.6% | $109,483 |
4Killeen | 0% | 8.19% | 1.6% | $109,483 |
5Tyler | 0% | 8.19% | 1.6% | $109,483 |
6Pasadena | 0% | 8.19% | 1.6% | $109,483 |
7Laredo | 0% | 8.19% | 1.6% | $109,483 |
8San Antonio | 0% | 8.19% | 1.6% | $109,483 |
9Waco | 0% | 8.19% | 1.6% | $109,483 |
10Lubbock | 0% | 8.19% | 1.6% | $109,483 |
Amarillo ranks #1 in Texas for this analysis with a cost index of 73 and median income of $62,469.
Yes. On a $150K salary in Amarillo, rent would consume about 10% of your gross monthly income. Financial experts recommend keeping rent under 30%. You're well within that guideline.
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 $150K in Amarillo is approximately $109,483/year ($9,124/month). After median rent of $1,245/month, you'd have roughly $94,543/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.