City Cost of Living ReportTexas (TX)
Houston, TX Cost of Living
Detailed 2026 economic index for Houston. Compare median home values ($275,000), average monthly rent ($1650/mo), local taxes, groceries, and salary conversion equivalents.
Overall COL Index
95.8
4% below US avgMedian Income$56,019
Median Home Price$275,000
Median Rent$1650/mo
Population2,304,580
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Cost Index Breakdown vs US Average (100)
Scores above 100 represent higher than national average costs; scores below 100 indicate greater affordability.
US Baseline = 100
Housing Index
-14% lower86.4
Food & Groceries
-3% lower97.1
Utilities
+3% higher102.5
Transportation
-1% lower98.6
Healthcare
-6% lower94.2
Itemized Cost Breakdown in Houston
Monthly Groceries
| Gallon of Whole Milk | $3.10 |
| Loaf of Fresh White Bread | $2.60 |
| Dozen Large Eggs | $3.20 |
| Boneless Chicken Breast (1 lb) | $3.75 |
| Apples (1 lb) | $1.95 |
| Estimated Monthly Grocery Bill | $390/mo |
Utilities & Internet
| Electricity (900 sq ft apartment) | $175.00 |
| Water & Garbage Service | $60.00 |
| High-Speed Broadband Internet (60+ Mbps) | $60.00 |
| Natural Gas Heating | $45.00 |
| Average Monthly Utilities Total | $340/mo |
Transportation & Transit
| Regular Gasoline (per gallon) | $2.95 |
| Monthly Public Transit Pass | $90.00 |
| Taxi Initial Tariff | $2.75 |
| Average Commute Time | 29.5 mins |
| Est. Monthly Commuter Cost | $380/mo |
Healthcare & Medical
| Primary Care Doctor Visit | $115 |
| Dental Checkup & Cleaning | $100 |
| Optometrist Eye Exam | $95 |
| Average Prescription Rx | $45 |
| Individual Policy Monthly Premium | $380/mo |
Tax Structure in Houston, TX
Understanding state income, local sales tax, and effective property tax burden.
State Income Tax
0.00%
No state personal income taxCombined Sales Tax
8.25%
State (6.25%) + Local (2%)Effective Property Tax
2.15%
Est. $5,912.5/yr on median homeFederal Tax Baseline
US Standard
Standard IRS tax brackets applyAdvertisementSlot #city-mid-rectangle
Interactive Historical Trends & Charts
Housing & Rent Inflation Trend (2020 – 2026)
Category Breakdown vs National Benchmark
Pros of Living in Houston
- •Zero state income tax in Texas
- •Below national average overall cost of living
- •World-leading Texas Medical Center and booming energy sector
Cons of Living in Houston
- •Hot, humid summer weather and potential hurricane exposure
- •Car dependency with widespread sprawl
Top Neighborhoods in Houston
The Heights
Historic walkable neighborhood with craft eateries and bungalows
Avg Neighborhood Rent:$1900/mo
Montrose
Eclectic artistic neighborhood near Downtown and Museum District
Avg Neighborhood Rent:$1750/mo
Sugar Land
Top-rated suburban area with great public schools
Avg Neighborhood Rent:$1600/mo
Frequently Asked Questions — Living in Houston, TX
Authoritative 2026 economic index, housing market, and salary questions.
The overall cost of living index for Houston, TX is 95.8, benchmarked against the US national average baseline of 100. This means Houston is 4% more affordable than the national average.