Cost of Living in Houston

Texas · Population: 2,328,253 · Updated 2026

Below Average
Cost Index
98.6
100 = US avg
Median Income
$65K
Annual household
Median Rent
$1,361/mo
2-bedroom unit
Rent Burden
25%
Income to rent ratio
Cost Category Breakdown

Indexed to national average (100)

Housing80.1
Groceries350.2
Utilities100.0
Transportation281.5
Healthcare100.0
Economic Details
Median Home Value$278K
State Income TaxNone
Unemployment Rate4.2%
Est. Net Income$65K/yr
Affordability Score
101
out of 100
Below national average cost
Salary Converter for Houston

See what salary you'd need in another city to match your purchasing power in Houston.

$75,000

About Houston

Houston is the energy capital of the world and one of the most affordable major cities in the US. With no state income tax and low housing costs, your dollar goes much further here than in coastal cities.

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Frequently Asked Questions

Is Houston expensive?

Houston has a cost of living index of 98.6, where 100 represents the national average. This is close to the national average.

What salary do you need to live comfortably in Houston?

Based on a rent-to-income ratio of 30%, you'd need at least $54,440 to afford the median 2-bedroom apartment in Houston and maintain basic expenses.

What is the median rent in Houston?

The median 2-bedroom rent in Houston is $1,361 per month, according to HUD Fair Market Rent data.