Minneapolis, MN vs Houston, TX Cost of Living (2026)

Minneapolis has a cost of living index of 92, about 8% below the national average. Housing runs below the national baseline, with a housing index of 80.5. Typical apartment rent is about $1,453 a month, and median home values are around $405,800. The median household income is approximately $80,000.

A $100,000 salary in an average-cost city stretches to about $108,700 in Minneapolis. That extra room can make it easier to save, pay down debt, or stretch for a better housing setup. Several everyday categories, especially transportation and miscellaneous costs, stay below the national baseline.

Minnesota has a progressive income tax that tops out at 9.85%, the fourth-highest top rate in the country. At a $100,000 income, the marginal state rate is 7.85%, and the effective rate is around 6 to 7%. That's a real cost compared to no-income-tax states, and it's worth factoring into any comparison with cities in Texas or Florida. Minneapolis residents do not pay a separate city income tax.

Heating costs in Minneapolis are a significant part of the annual budget. Natural gas and electric bills from November through March can run $150 to $300 per month in a typical apartment, and homeowners in older housing stock may pay more. The city gets an average of 54 inches of snow per year, which also increases transportation costs and adds winter clothing and maintenance expenses that residents in warmer climates don't face.

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.