Best Affordable Places to Live in Texas in 2026
By Dan Miller
(Last Updated – 08/2026)
As one of the largest states in the U.S., Texas offers a lot of options for great places to live. Home to several of the most populous cities in the country (Houston, Dallas, San Antonio, and Austin), Texas also has a plethora of small and medium-sized towns. And there are deals to be had: The cost of living in Texas is about 8% lower than the national average.
Best Places to Live in Texas
No matter what you’re looking for, you’re likely to be able to find it in Texas. Big cities, rural ranches, and everything in between — the Lone Star State has something for everyone. Texas also features a wide range of natural beauty, from beaches on the Gulf of Mexico to the Texas Hill Country on the western side of the state.
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Best Affordable Places to Live in Texas
If cost is top of mind, take a look at some of the cities mentioned below to determine where the best place to live in Texas might be for you and your family.
To arrive at this list, we considered the overall cost of living for a location, as well as rent prices, home values, and other factors. Utilities are driving up the overall cost of living in Texas, but it still remains quite affordable.
1. Odessa
Photo credit: iStock/DenisTangneyJr
Odessa is the county seat of Ector County and is located in West Texas, near the state’s border with New Mexico. Odessa is said to be the inspiration for the fictional setting of Dillon, Texas, in the popular book and movie “Friday Night Lights.” In addition to loads of local sports and activities to keep you busy, you can also check out the replica of Stonehenge located at the University of Texas Permian Basin.
Population: 122,707
Median Household Income: $73,472
Cost of Living: 94% of U.S. average
Average Rent Price: $2,000
Home Value-to-Income Ratio: 3.47
Recommended: First-time Homebuyer Programs in Texas
2. Amarillo
Photo credit: iStock/DenisTangneyJr
Located in the Texas Panhandle in northern Texas, Amarillo is the gateway to Palo Duro Canyon State Park. You can also visit the Cadillac Ranch (a famous art installation of buried graffiti-decorated cars) or check out Historic Route 66. The area is rich in agriculture, but biosciences, technology, and aerospace companies are also increasingly calling the region home.
Population: 205,150
Median Household Income: $65,912
Cost of Living: 86% of U.S. average
Average Rent Price: $1,250
Home Value-to-Income Ratio: 3.18
3. Abilene
Photo credit: iStock/Aaron Yoder
Located alongside Interstate 20 about three hours west of Dallas, Abilene hosts Dyess Air Force Base and is the county seat of Taylor County. It features a historic downtown where visitors enjoy the restored Paramount Theatre and Abilene Philharmonic Orchestra. Rodeo is a popular event in the spring and fall.
Population: 131,588
Median Household Income: $62,648
Cost of Living: 86% of U.S. average
Average Rent Price: $2,650
Home Value-to-Income Ratio: 3.50
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Best Places to Live in Texas for Families
For those in search of towns that are kid-friendly (meaning well-regarded schools and plenty of parks and activities), Texas has plenty of options. Here are three favorites to consider.
1. Leander
Photo credit: iStock/RoschetzkyIstockPhoto
Located in the booming Austin metropolitan area, Leander was the fastest-growing city in the United States about seven years ago and continues to attract new residents. Nature enthusiasts can take advantage of the nearby Colorado River as well as Balcones Canyonlands National Wildlife Refuge, and you’re also close enough to Austin to enjoy all of the perks of a larger metro area.
Population: 91,132
Median Household Income: $139,048
Cost of Living: 95% of U.S. average
Average Rent Price: $2,275
Home Value-to-Income Ratio: 3.09
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2. The Woodlands
Photo credit: iStock/GJGK Photography
The Woodlands is a census-designated place in Montgomery County in the northern exurbs of Houston. A master-planned community, it features eight different villages, with each village further subdivided into neighborhoods. The area is known for its parks and boasts 220 miles of biking and hiking trails, which may be one reason it makes so many people’s list of best places to live in Texas for families.
Population: 140,489
Median Household Income: $135,645
Cost of Living: 98% of U.S. average
Average Rent Price: $2,700
Home Value-to-Income Ratio: 4.23
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3. Round Rock
Photo credit: iStock/SWCargill
If you’re looking to be a part of the Austin metropolitan area but are seeking something outside Austin proper, Round Rock may be an option worth considering. Round Rock is located about 20 miles northeast of Austin and is named for the Round Rock, a large stone in Brushy Creek where 19th-century travelers made low-water crossings via wagon. Today, it lands on lists of best places in Texas to live for families because of its abundance of parks, sports and recreation facilities, and other activities for kids.
Population: 141,282
Median Household Income: $99,287
Cost of Living: 94% of U.S. average
Average Rent Price: $2,195
Home Value-to-Income Ratio: 4.12
Best Places to Live in Texas for Young Adults
People in their 20s and 30s may especially appreciate these towns for their career opportunities and amenities like great dining-out options, plus access to nature and recreation.
1. New Braunfels
Photo credit: iStock/dszc
Located northeast of San Antonio on the way to Austin, New Braunfels sits at the confluence of the Comal and Guadalupe rivers. Nature enthusiasts can visit the underground limestone caves at Natural Bridge Caverns. And if you’re looking for an aquatic adrenaline rush, check out the Schlitterbahn water park.
Population: 122,492
Median Household Income: $86,021
Cost of Living: 96% of U.S. average
Median Rent Price: $1,717
Home Value-to-Income Ratio: 4.08
2. Dallas
Photo credit: iStock/Art Wager
Anchoring a major metro area in Texas, Dallas has something for everyone, so it’s not surprising it’s on a list of best places to live in Texas for young adults. Whether you’re looking to commune with nature, seeking a vibrant nightlife and cultural scene, or want access to major sports, the Dallas area has options for everyone. There’s also a busy job market, particularly in tech. In addition to all these advantages, when you compare the cost of living by state, Dallas may be somewhat pricier than other regions in the state, but it remains quite affordable as compared to metro areas in other parts of the country.
Population: 1,329,491
Median Household Income: $70,518
Cost of Living: 114% of U.S. average
Average Rent Price: $1,900
Home Value-to-Income Ratio: 4.42
3. Houston
Photo credit: iStock/Kruck20
Houston is another Texas city that has options for everyone. While Houston is most closely linked with the NASA Space Center, this culturally diverse city also features an arts scene, with museums and an amazing array of music options. Locals treasure the Theater District and the Houston Grand Opera. Additionally, it’s got plenty of green spaces (and multiple professional sports teams for spectators). If you’re thinking of moving to Houston, consider getting prequalified for a home loan before you get serious about your home search.
Population: 2,397,315
Median Household Income: $64,813
Cost of Living: 103% of U.S. average
Average Rent Price: $1,900
Home Value-to-Income Ratio: 4.09
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Best Places to Live in Texas for Retirees
Some of the best places to live in Texas for retirees are the locations that have an affordable cost of living and lots of fun things to do (walking trails, restaurants, entertainment) as you enjoy your free time. Take a look at what these three towns in Texas offer.
1. Katy
Photo credit: iStock/simonkr
If you’re interested in the Houston area but don’t want to live in Houston proper, you might consider the suburb of Katy. Katy sits near the intersection of Fort Bend, Waller, and Harris counties, to the west of Houston. Affordability is one major plus, and it offers a wealth of activities from the Johnny Nelson Katy Heritage Museum to the Mary Jo Peckham Park, with its fish-filled lake, to restaurants and craft breweries.
Population: 26,373
Median Household Income: $114,912
Cost of Living: 96% of U.S. average
Average Rent Price: $2,300
Home Value-to-Income Ratio: 2.94
2. Killeen
Killeen is a city in Central Texas and home to the sprawling Fort Hood army base. The Belton Lake Outdoor Recreation Area is a great draw for nature lovers, and the Mayborn Science Theater offers planetarium shows on a 60-foot domed screen. Historic sites, walking paths, and local theater also help fill residents’ free time.
Population: 161,883
Median Household Income: $60,977
Cost of Living: 90% of U.S. average
Average Rent Price: $1,200
Home Value-to-Income Ratio: 3.62
3. McAllen
Photo credit: iStock/DenisTangneyJr
McAllen is one of the larger cities in southern Texas, located directly across the border from Reynosa, Mexico. Residents and visitors can check out the International Museum of Art & Science, the McAllen Heritage Center, and Quinta Mazatlan, a Spanish Revival mansion in an area with woodlands and many species of bird life.
Population: 150,640
Median Household Income: $61,579
Cost of Living: 84% of U.S. average
Average Rent Price: $1,300
Home Value-to-Income Ratio: 3.74
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Best Places to Live in Texas Near the Beach
If your goal is affordable living near the beauties of a beach, Texas may have the answer. Here are three top picks for beach living in the Lone Star State.
1. Corpus Christi
Photo credit: iStock/Jennifer Coulter
Corpus Christi is a beach town located in southern Texas directly on the Gulf of Mexico. The Padre Island National Seashore acts as a barrier island protecting Corpus Christi Bay, and it’s home to endangered sea turtles as well as several species of migratory birds. And, yes, spectacular sunsets are frequent!
Population: 317,247
Median Household Income: $67,394
Cost of Living: 93% of U.S. average
Average Rent Price: $1,545
Home Value-to-Income Ratio: 3.34
2. Freeport
Photo credit: iStock/brucemaloneatx
Freeport is located in Brazoria County on the Gulf of Mexico south of Houston. In addition to enjoying access to the Gulf of Mexico, outdoor enthusiasts can also take advantage of the San Bernard National Wildlife Refuge and the Justin Hurst Wildlife Management Area. Morning beach walks are just one of the wonderful rituals residents can experience here.
Population: 10,508
Median Household Income: $61,134
Cost of Living: 80% of U.S. average
Average Rent Price: $1,350
Home Value-to-Income Ratio: 2.61
3. Rockport
Photo credit: iStock/jerryhopman
Rockport is a beach town in southern Texas, just to the north of the larger city of Corpus Christi. Visitors and residents can explore the Texas Maritime Museum, the Rockport Center for the Arts, and the Aransas National Wildlife Refuge, which has 115,000 diverse acres full of waterfowl and other wildlife.
Population: 11,348
Median Household Income: $72,174
Cost of Living: 94% of U.S. average
Average Rent Price: $1,499
Home Value-to-Income Ratio: 4.27
The Takeaway
Texas, one of the largest and most populous states in the country, has wonderful cities and towns, whether you’re looking for the great outdoors, buzzing nightlife, lots of playgrounds, or all of the above. Texas also features a below-average cost of living, with even many of its large cities and metropolitan areas offering housing and overall costs right around or lower than the national average. That means your income may be able to stretch even further, allowing you a better bang for your buck.
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FAQ
What Texas town has the lowest cost of living?
Texas features a variety of different towns and cities that are quite affordable. You might consider Abilene and Amarillo, two locations which offer significantly lower costs of living (about 14% lower than the national average) and can be great hometowns for those looking for a place to put down roots in Texas.
Where is the cheapest place to live in TX?
Texas is the largest state in the 48 contiguous U.S. states. While you may be able to find the absolute cheapest places to live in the remote reaches of Texas, you should also consider access to amenities in your home search. The good news is that the cost of living in Texas as a whole is below the national average — so no matter where you decide to live, your money will likely stretch further than in other states. A few locations to consider: Abilene, Amarillo, and Odessa.
Where are good places for young professionals to live in Texas?
New Braunfels, Dallas, and Houston can be good places for young professionals to live in Texas. These cities have considerable job opportunities and many activities (from recreational options to nightlife) that people in this life stage tend to enjoy.
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