Cost of Living in Texas (2026): What Renters Should Budget

Updated September 2026. Rent figures reflect Apartment List's August 2026 estimates.

Texas's statewide median rent was $1,230 in August 2026, according to the Apartment List Rent Index: 11.5% below the national median of $1,390, and above every neighboring state's. At the median one-bedroom rent of $1,091, rent takes 30% of an annual income of about $43,640 before taxes.

The statewide median is the middle of the whole Texas market, with half of rents above it and half below, and where you rent matters more than that single figure. Among the 20 Texas metros covered by Apartment List, medians run from $881 in the McAllen metro to $1,640 in Odessa, $759 apart, so your target metro's median may sit several hundred dollars above or below the statewide number. Use the tables below to find your area's rent, what it means for income, and what electricity and taxes add in a state with no personal income tax.

Texas Cost of Living at a Glance

Rent figures are Apartment List statewide medians for August 2026; the extra-rent and equal-split rows are derived from them and compare statewide medians. Electricity is the EIA's 2024 average residential bill. Income tax status is from the Texas Constitution.

How to use these numbers: Start with the statewide rent for your unit size, find your metro in the tables below, add the planning estimates that apply to you, then replace them with the listing's actual rent and charges.

Is Texas an Expensive State to Live In?

Texas's median rent is 11.5% below the national median. Whether Texas looks cheap depends on where you're comparing it with: the statewide median of $1,230 is higher than any neighboring state's, from Louisiana at $116 less to Arkansas at $301 less, and lower than 25 of the 50 state-level markets in Apartment List's August 2026 data. It also depends on where in Texas you're headed. The Dallas-Fort Worth metro is the only one of the state's four largest metros with a median above the national figure, so a move there is closer to national rent levels than the statewide number suggests.

Apartment List medians across all apartment sizes, August 2026. Percentages use Texas's median as the base. Metro and statewide medians are separate measures, shown together so you can see where each sits; the table compares medians only.

Beyond Rent: Taxes, Electricity, and Insurance

Taxes. Texas levies no personal income tax; the Texas Constitution (Article 8, Section 24-a) prohibits one, so no state income tax is withheld from wages. Federal income tax and Social Security and Medicare withholding still apply, so your take-home pay is lower than your gross salary, but not by a state tax. The state sales tax rate is 6.25%, and local jurisdictions can add up to 2% for a combined maximum of 8.25% (Texas Comptroller), so the rate you pay at the register depends on the city and county. Grocery food such as bread, milk, eggs, and produce is not taxed (Texas Comptroller). Texas has no state property tax; local governments set and collect property taxes (Texas Comptroller).

Electricity. Texas households pay less per kilowatt-hour than the national average but use more electricity, so the average bill comes out higher: $164 a month in 2024 against $142 nationally, according to the U.S. Energy Information Administration, averaged across all housing types. In the parts of Texas with retail electric choice, you pick your own provider, which means the plan you choose affects your bill along with how much you use; the Public Utility Commission's Power to Choose site lists plans by ZIP code. For an apartment you're considering, ask which utilities are included and whether recent usage or bills are available.

Insurance and property taxes. The property owner pays the property-tax bill and insures the building. Renters insurance covers your belongings and other protections specified in your policy, and the Texas Department of Insurance puts the average Texas renters policy at about $20 a month. Most renters policies do not cover flood damage; a separate flood policy may be needed to protect your belongings against flooding. Texas law requires landlords to tell prospective renters if they know the dwelling is in a 100-year floodplain or had flood damage in the previous five years (Texas Department of Insurance); if you receive that notice, price a flood policy for your belongings before you sign.

How Rent Changes Across Texas

Seven of the 20 metros shown have medians above the statewide $1,230 and 11 are below it; Amarillo and San Angelo are within 1% of it. Metro figures cover a broader area than the named city. If you're considering several communities around a city, start with the metro figure. If your search is limited to city limits, use the city tables below. Both describe a broader market than any particular neighborhood or building.

Metros are grouped here into four regions for this guide. Rents in the tables are Apartment List monthly medians for August 2026; "vs. TX" compares each overall median with the statewide $1,230.

North and East Texas

Central Texas

Gulf Coast and South Texas

West Texas and the Panhandle

Every Texas metro in the data sits entirely within the state.

If you're choosing among the four largest metros, San Antonio is the only one below the statewide median: its overall median is $269 a month below Dallas-Fort Worth's, and $254 below on a one-bedroom. Midland and Odessa are the exceptions to the state's below-national pattern, with one-bedroom medians roughly $290 to $330 a month above the statewide one-bedroom figure, so a budget set to the statewide number is below the median in both. The three lowest metro medians are in McAllen, Longview, and Sherman-Denison, where a one-bedroom in the McAllen metro is $424 a month below the statewide one-bedroom median.

Rent by City

Apartment List monthly medians, August 2026, for the 12 largest Texas cities by population in the city-level data, listed by overall median.

Cities at or above the statewide median ($1,230)

Cities below the statewide median

The city table is mostly a Dallas-Fort Worth story: six of the nine cities at or above the statewide median are in that metro, and which city you pick inside it matters. Plano's median is $368 a month above Arlington's, though both are in the same metro. Metro and city figures can also point in different directions for the same name: Houston's citywide median is $68 below its metro's, while Austin's is $28 above, so use the figure that matches the area you're actually searching. Among all 77 Texas cities in the data, medians run from $906 in Seguin to $1,981 in Flower Mound.

How Much Income Do You Need to Rent in Texas?

At Texas's median one-bedroom rent of $1,091, rent takes 30% of an annual income of about $43,640 before taxes, or about $3,640 a month. For a median-priced two-bedroom at $1,222, the same share of income is about $48,880 a year for the household, or $24,440 each when two renters split the rent equally.

These calculations use Apartment List's August 2026 rent estimates and cover rent alone, so treat them as rent-affordability benchmarks rather than a full budget. The 30% share is the U.S. Department of Housing and Urban Development (HUD) affordability standard, and HUD's version counts rent and utilities together: adding the 2024 average electric bill of $164 a month to the one-bedroom rent raises the household figure by about $6,500 a year, or about half that per renter when two split the bill.

The tables apply the same calculation to each of the 20 metros shown, grouped by the same regions as the rent tables above.

Estimated annual household income before taxes, with rent at 30% of income (statewide: $43,640 for a one-bedroom, $48,880 for a two-bedroom)

North and East Texas

Central Texas

Gulf Coast and South Texas

West Texas and the Panhandle

Rent x 12 / 0.30, using Apartment List's August 2026 metro medians, rounded to the nearest $10; rent alone. Two renters splitting a two-bedroom equally would each need half the two-bedroom figure.

On the one-bedroom median, the range runs from $26,680 in the McAllen metro to $57,000 in the Midland metro. At $50,000 a year before taxes, a rent-only 30% budget is $1,250 a month. That covers the one-bedroom median in 18 of the 20 metros shown; Midland and Odessa are the exceptions. Treat that as a way to narrow the search; utilities and your other expenses still have to fit before you set a rent limit.

In Texas the step up from a one-bedroom to a two-bedroom is small: $131 a month at the statewide medians, or 12.0%, against a roughly 19.5% median gap across the 50 state-level markets in Apartment List's August 2026 data. That small step is why splitting a two-bedroom saves each renter as much as it does: two renters splitting the $1,222 two-bedroom equally pay $611 each before utilities and fees, $480 a month less per renter than the $1,091 one-bedroom median, and the rent benchmark falls to about $24,440 in annual income per renter. That is an equal-split example; your share depends on the apartment's rent and how you divide it.

The Apartment List Cost of Living Calculator uses after-tax income and costs beyond rent, so it produces a different estimate.

Are Texas Rents Rising or Falling?

Texas's median rent in August 2026 was 2.5% below its level a year earlier and 9.2% below its August 2022 peak, according to Apartment List. Compared with March 2020, it is up 10.9%, against a 19.7% rise in the national median.

A renter who last looked during the 2022 peak will find a lower statewide median today. A renter working from a pre-pandemic budget will find rents higher, though the rise is smaller than the national one. Either way, check current listings in your target area before setting expectations.

August marked the 39th consecutive month with rent below its year-earlier level, and the annual decline narrowed from 3.1% in April to 2.5% in August. Within the state, 13 of the 20 metros shown had lower medians than a year earlier, including all four of the largest: if you compared rents in Dallas-Fort Worth, Houston, Austin, or San Antonio a year ago, the medians you saw were higher than today's, with San Antonio's down the most among the four at 5.1%. Seven metros rose, led by San Angelo (7.1%) and Amarillo (3.6%), where last year's medians were lower than today's. Sherman-Denison had the largest fall of any metro, 10.7% (Apartment List, August 2026).

The Short Answer on Texas's Cost of Living

Texas's median rent of $1,230 is 11.5% below the national median and above every neighboring state's, and 11 of the 20 metros shown have lower medians than the statewide figure. On rent alone at the 30% benchmark, a one-bedroom corresponds to about $43,640 a year in household income statewide, from about $26,680 in the McAllen metro to about $57,000 in the Midland metro.

Begin with the rent for the metro or city you're targeting and the bedroom size you need. Then check what the listing includes and compare what remains against your take-home pay. Texas's lack of a state income tax is one input; the rent you choose and the bills you pay separately determine the rest.

To compare a specific Texas city with where you live now, the Apartment List Cost of Living Calculator works from after-tax income and covers costs beyond rent. For weather, daily life, and moving considerations, see our guide to living in Texas.

Appendix: Methodology and Data Sources

Apartment List reports median rents on new leases. Each geography and bedroom size has a separate series. North and East Texas, Central Texas, Gulf Coast and South Texas, and West Texas and the Panhandle are editorial groupings of the 20 Texas metros covered by Apartment List, used in this guide.

Income benchmarks are 40 times the monthly rent (rent at 30% of annual income before taxes), rounded to $10, and cover rent alone; the electricity addition applies the same multiplier to the EIA's published 2024 bill of $163.72. EIA figures are 2024 averages per residential account across all housing types: Texas households used 1,096 kWh a month at 14.94 cents per kWh; the national averages were $142.26, 863 kWh, and 16.48 cents.

State comparisons use the 50 state-level rows in Apartment List's August 2026 data (49 states and the District of Columbia; Vermont has no row that month). The August 2022 peak and the 9.2% gap below it are derived by compounding month-over-month growth from February 2017, since Apartment List publishes no peak field; the 39-month run below year-earlier rent is counted from June 2023 in the year-over-year data; growth since March 2020 is a published field. Income figures are planning calculations covering rent, plus electricity where specified. They are not measured incomes or complete living budgets.

Frequently Asked Questions About the Cost of Living in Texas

Is Living in Texas Expensive?

Texas's median rent of $1,230 is 11.5% below the national median of $1,390 as of August 2026, according to the Apartment List Rent Index; 25 of the 50 state-level markets in that month's data have a higher median. Rents vary within the state: 11 of the 20 metros Apartment List covers are below the statewide figure, while the Dallas-Fort Worth metro is 15.2% above it and above the national median. Texas has no state income tax, and its 2024 average electric bill of $164 was above the national average of $142 (EIA).

What Salary Is Needed to Live Comfortably in Texas?

On rent alone, Texas's median one-bedroom rent of $1,091 corresponds to about $43,640 a year in income before taxes, with rent at 30% of income. The $1,222 two-bedroom median corresponds to about $48,880 in household income. Two renters splitting that two-bedroom equally would each need about $24,440 (Apartment List, August 2026).

On the same calculation, one-bedroom medians across the 20 metros Apartment List covers correspond to about $26,680 a year in the McAllen metro, $38,800 in the San Antonio metro, $45,440 in the Houston metro, $45,720 in the Austin metro, $48,960 in the Dallas-Fort Worth metro, and $57,000 in the Midland metro. These are rent-affordability benchmarks; a comfortable salary also depends on utilities, transportation, savings, and everything else in your budget.

What Is the Median Rent in Texas in 2026?

As of August 2026, $1,230 a month across all apartment sizes, according to the Apartment List Rent Index; the median one-bedroom is $1,091 and the median two-bedroom $1,222.

What Is the Average Rent in Texas?

Apartment List reports medians rather than averages. The median is the middle of the market, with half of rents above it and half below, and a few very high or very low rents move it less than they would move an average. As of August 2026, Texas's statewide median across all apartment sizes is $1,230 (Apartment List).

Does Texas Have a State Income Tax?

No. The Texas Constitution prohibits a tax on individual income, so no state income tax is withheld from wages. Texas's state sales tax rate is 6.25%, local jurisdictions can add up to 2%, and grocery food is not taxed (Texas Comptroller).

How Do Austin, Dallas, Houston, and San Antonio Compare on Rent?

By metro median, Dallas-Fort Worth is the highest of the four at $1,417 (15.2% above the statewide median), followed by Houston at $1,336 (8.6% above), Austin at $1,300 (5.7% above), and San Antonio at $1,148 (6.7% below), as of August 2026 (Apartment List). On a one-bedroom at the 30% benchmark, those medians correspond to about $48,960, $45,440, $45,720, and $38,800 a year. All four had lower medians than a year earlier, San Antonio by the most at 5.1%.

Where in Texas Is Rent Lowest?

Among the 20 Texas metros covered by Apartment List's August 2026 estimates, McAllen-Edinburg-Mission has the lowest median at $881, 28.4% below the statewide median, followed by Longview ($953) and Sherman-Denison ($1,053). Of the four largest metros, San Antonio is lowest at $1,148. Among the 77 Texas cities in the data, Seguin is lowest at $906 and Flower Mound highest at $1,981.

How Much Is Electricity in Texas?

Texas's average residential electric bill was $164 a month in 2024, averaged across all housing types, above the national average of $142 (EIA). Texas's price per kilowatt-hour is below the national average, but its average household uses more electricity. In the parts of the state with retail electric choice, you pick your own provider through the Public Utility Commission's Power to Choose site. For an apartment you're considering, ask which utilities are included and whether recent bills are available.

Do Renters Pay Texas Property Taxes and Home Insurance?

No bill for either comes to renters. Texas has no state property tax; local governments set rates and bill property owners (Texas Comptroller), and the owner insures the building. Renters insurance covers your belongings, at about $20 a month for the average Texas policy according to the Texas Department of Insurance, and a separate flood policy may be needed to protect your belongings against flooding.

Is 30% of Income a Hard Limit for Rent?

No. It is a planning benchmark. HUD calls households spending more than 30% of income on housing cost-burdened and more than 50% severely cost-burdened; Apartment List's research found that about 51.8% of U.S. renter households spent more than 30% and 26.1% more than 50%, based on 2024 American Community Survey data. The question is what the rest of your budget can absorb.