Houston, TX vs Cleveland, OH Cost of Living (2026)

Houston has a cost of living index of 92.9, about 7.1% below the national average. Housing runs below the national baseline, with a housing index of 79.8. Typical apartment rent is about $1,355 a month, and median home values are around $421,489. The median household income is approximately $68,000.

A $100,000 salary in an average-cost city stretches to about $107,600 in Houston. That extra room can make it easier to save, pay down debt, or stretch for a better housing setup. Several everyday categories, especially healthcare and transportation, stay below the national baseline.

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.

Cleveland has a cost of living index of 92.8, about 7.2% below the national average. Housing runs below the national baseline, with a housing index of 79.7. Typical apartment rent is about $1,476 a month, and median home values are around $399,663. The median household income is approximately $50,000. For workers who earn average or above-average salaries, Cleveland offers exceptional purchasing power relative to nearly any other major US metro.

A $100,000 salary in an average-cost city stretches to about $107,800 in Cleveland. That extra room can make it easier to save, pay down debt, or stretch for a better housing setup. Most everyday categories stay manageable here, although healthcare still runs a bit high.

Ohio has a progressive income tax, and Cleveland and the surrounding municipalities add local income taxes on top. Cleveland itself has a 2.5% city income tax, and the suburb where someone lives may also charge a local income tax, though residents typically receive partial credit to avoid full double taxation. Ohio's state income tax reaches 3.75% at the top bracket. The combined local and state burden is moderate but not negligible.

Like Detroit, Cleveland's affordability reflects a city that has lost significant population over the past 60 years, from a peak of nearly 900,000 in 1950 to roughly 370,000 today. The metro area is larger and more stable than the city itself. Suburbs like Lakewood, Shaker Heights, Cleveland Heights, and Westlake have strong housing markets with good school systems and reasonably maintained infrastructure, and they carry higher prices than the city core. Workers who want affordability without sacrificing basic services typically find a better balance in the inner suburbs than in the city proper.