Houston, TX Cost of Living (2026)

Houston has a cost of living index of 100, exactly at the national average. The housing index is 108, just slightly above average. A one-bedroom apartment in Houston rents for around $1,100 to $1,500 per month, and median home prices sit near $300,000. The median household income is approximately $58,000, which, combined with near-average costs, means most working households can cover basic expenses without the extreme budget pressure seen in coastal cities.

A $100,000 salary in Houston carries essentially the same purchasing power as it would in an average-cost city. Someone earning that salary and choosing Houston over a higher-cost metro is keeping their full salary value rather than watching part of it absorbed by cost premiums. Workers coming from San Francisco or New York effectively get a large pay increase in real terms by moving to Houston at the same nominal salary.

Texas has no state income tax, which gives Houston an advantage over cities in states with significant income tax. At a $75,000 salary, that difference can mean $4,000 to $5,000 more per year in take-home pay compared to a state with a 6 or 7% income tax rate. Property taxes offset some of that advantage, with effective rates in the Houston metro running around 1.5 to 2.0% of assessed value annually.

One financial consideration specific to Houston is flood insurance. Much of the city sits in floodplains, and flooding events have been serious and recurring. Homeowners in many areas are required to carry flood insurance, which can cost $800 to $3,000 per year depending on location and coverage level. That cost is rarely included in standard home affordability calculations but is a real part of the total cost of homeownership in many Houston neighborhoods.