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Cost of Living: Houston, TX vs El Paso, TX

Wondering how far your dollar stretches in Houston compared to El Paso? Below we break down housing costs, rent, taxes, income, and quality of life using 2026 data so you can make an informed relocation or remote-work decision. Every number is computed from Census, BLS, and Zillow data specific to these two metro areas.

TL;DR

Houston cost-of-living index is 101 vs 84 for El Paso (US = 100). Median home: $320,000 vs $195,000. Median rent: $1,262/mo vs $745/mo.

Source: Census ACS · Zillow ZHVI/ZORI · BEA RPP, 2026

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El Paso is 16.8% cheaper than Houston
COL Index: Houston 101 vs El Paso 84 (national avg = 100)
Written by Jere Salmisto, Founder & Quantitative Systems Builder, CalcFi·Reviewed by CalcFi Editorial·Last reviewed 2026-04-19

Houston vs El Paso — At a Glance

HoustonMetricEl PasoDifference
101Cost of Living Index84-16.8%
$320,000Median Home Price$195,000-39.1%
$1,262Median Monthly Rent$745-41.0%
$67,800Median Household Income$48,000-29.2%
1.9%Property Tax Rate1.8%-5.3%
4.2%Unemployment Rate4.7%+11.9%
29 minAverage Commute24 min-17.2%
34.5Median Age32.1-7.0%
7,470,000Metro Population870,000-88.4%

Data sourced from Census Bureau, BLS, Zillow, and ApartmentAdvisor (2024-2025). COL Index: 100 = national average.

Housing Comparison: Houston vs El Paso

Monthly mortgage assumes 6.5% interest, 30-year fixed, 20.0%down payment. PITI includes principal, interest, property tax, and homeowner's insurance.

Houston

Median Home Price$320,000
Down Payment (20.0%)$64,000
Loan Amount$256,000
Principal & Interest$1,618/mo
Property Tax$507/mo
Insurance$93/mo
Monthly PITI$2,218/mo

El Paso

Median Home Price$195,000
Down Payment (20.0%)$39,000
Loan Amount$156,000
Principal & Interest$986/mo
Property Tax$292/mo
Insurance$57/mo
Monthly PITI$1,335/mo

Rent & Affordability Ratios

Median Monthly Rent$1,262 vs $745 (-$517/mo)
Annual Rent Difference$6,204/yr more in Houston
Home Price-to-Income Ratio4.7x (Houston) vs 4.1x (El Paso)
Years to Save 20% Down (15% savings rate)6.3 yrs (Houston) vs 5.4 yrs (El Paso)

Buying a home in Houston costs $2,218/month (PITI) compared to $1,335/month in El Paso — a difference of $883/month or $10,596/year. The price-to-income ratio is 4.7x in Houston versus 4.1x in El Paso, suggesting El Paso is relatively more affordable for homebuyers relative to local incomes. At a 15% savings rate, it takes 6.3 years to save a down payment in Houston compared to 5.4 years in El Paso.

Tax Comparison: Houston vs El Paso

Estimated on each city's median household income, single filer, standard deduction, 2025 rates.

Tax CategoryHoustonEl Paso
Gross Income$67,800$48,000
State Income TaxNoneNone
Federal Income Tax$6,365$3,631
FICA (SS + Medicare)$5,187$3,672
Property Tax (on median home)$6,080/yr$3,510/yr
State Sales Tax Rate6.3%6.3%
Total Tax Burden$11,552 (17.0%)$7,303 (15.2%)
Take-Home Pay$56,248$40,697

Texas has no state income tax, giving Houston residents a significant tax advantage. On median household income, total taxes (federal + state + FICA) come to $11,552 in Houston (17.0% effective) versus $7,303 in El Paso (15.2% effective). After taxes, take-home pay is $56,248 in Houston and $40,697 in El Paso. Property taxes add $6,080/year on the median Houston home versus $3,510/year in El Paso.

Salary Equivalence: What Your Income Is Worth

A $67,800 salary in Houston equals
$56,388
in El Paso
A $48,000 salary in El Paso equals
$57,714
in Houston

These figures adjust for cost of living using the formula: adjusted = salary × (COL_destination / COL_origin). If you earn $67,800 in Houston (COL 101) and relocate to El Paso (COL 84), you would need $56,388 to maintain the same purchasing power. This means you can take a pay cut of $11,412 and still maintain your lifestyle in El Paso.

Quality of Life: Houston vs El Paso

Average Commute
29 min
Houston
24 min
El Paso
5 min longer in Houston
Unemployment Rate
4.2%
Houston
4.7%
El Paso
Houston lower
Metro Population
7.5M
Houston
0.9M
El Paso
Houston is 8.6x larger

Beyond costs, quality of life matters. The average commute in Houston is 29 minutes versus 24 minutes in El Paso, a difference of 5 minutes each way. Houston's lower unemployment rate of 4.2% versus 4.7% suggests a stronger job market. Houston skews slightly older with a median age of 34.5 vs 32.1 in El Paso.

Other Cost of Living Comparisons

Houston vs New YorkCOL 101 vs 187Houston vs Los AngelesCOL 101 vs 173Chicago vs HoustonCOL 114 vs 101El Paso vs New YorkCOL 84 vs 187El Paso vs Los AngelesCOL 84 vs 173Chicago vs El PasoCOL 114 vs 84

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Frequently Asked Questions

Is Houston or El Paso more expensive?

Houston is 16.8% more expensive than El Paso overall. Houston has a cost of living index of 101 compared to 84 for El Paso (national average = 100). The biggest difference is housing: the median home costs $320,000 in Houston vs $195,000 in El Paso.

How much more does housing cost in Houston vs El Paso?

The median home price in Houston is $320,000, which is $125,000 more than El Paso's median of $195,000. Monthly rent follows a similar pattern: $1,262/month in Houston vs $745/month in El Paso, a difference of $517/month or $6,204/year.

What salary do I need in El Paso to match my Houston income?

To maintain the same standard of living, a $67,800 salary in Houston is equivalent to $56,388 in El Paso. This is based on the cost of living index ratio: Houston's COL index of 101 vs El Paso's 84. Conversely, $48,000 in El Paso equals $57,714 in Houston.

Which city has lower taxes, Houston or El Paso?

On a median household income, the combined federal, state, and FICA tax burden is $11,552 (17.0% effective rate) in Houston vs $7,303 (15.2% effective rate) in El Paso. Property taxes on the median home are $6,080/year in Houston (1.9% rate) vs $3,510/year in El Paso (1.8% rate). Sales tax rates are 6.3% in Texas and 6.3% in Texas.

What is the median household income in Houston and El Paso?

Houston median household income: $67,800/yr. El Paso median household income: $48,000/yr (Census ACS).

How does rent compare in Houston vs El Paso?

Median monthly rent: $1,262 in Houston vs $745 in El Paso. Annualized that is $15,144 vs $8,940.

Which city is better for remote workers, Houston or El Paso?

El Paso offers a lower cost of living (index 84 vs 101), which lets remote-workers keeping a coastal salary stretch further. Houston typically wins on amenities and labor-market depth.

Where does the data on this comparison come from?

Houston and El Paso numbers are pulled from Zillow ZHVI/ZORI (home values, rent), the U.S. Census Bureau ACS (income, demographics), and BEA RPP (cost-of-living index). Each value is timestamped on the page.

How often is this Houston vs El Paso comparison updated?

Source feeds (Zillow, Freddie Mac PMMS, Census ACS, BEA RPP) are refreshed on their native cadence. Page caches revalidate every 24 hours via Next.js ISR.

Does this comparison replace tax or financial advice?

No. The Houston vs El Paso cost-of-living page is educational reference using public data and standard formulas. It is not personalized tax, legal, or investment advice. Consult a licensed professional for material decisions.

Explore More

All City ComparisonsHouston COL CalculatorEl Paso COL CalculatorSalary GuidesMortgage Affordability CalculatorRent vs Buy Calculator

Sources & Citations

  1. Zillow Research — ZHVI (home values) & ZORI (observed rent index) — zillow.com/research/data
  2. U.S. Census Bureau — American Community Survey (ACS) 5-year estimates — census.gov/acs
  3. Bureau of Economic Analysis — Regional Price Parities by state and MSA — bea.gov/rpp
  4. Tax Foundation — effective state and local tax rates — taxfoundation.org
  5. Freddie Mac PMMS — weekly national average mortgage rates — freddiemac.com/pmms
  6. Internal Revenue Service — federal income tax brackets and standard deduction — irs.gov
  7. U.S. Bureau of Labor Statistics — unemployment and wage statistics — bls.gov
Methodology & Assumptions

Home prices use Zillow Home Value Index (ZHVI)[1]; rents use Zillow Observed Rent Index (ZORI)[1]. Median household income comes from the Census ACS 5-year estimates[2].

COL indices use the BEA Regional Price Parity methodology[3], normalized so 100 = national average.

Property tax rates are effective rates from the Tax Foundation[4], expressed as % of owner-occupied home value. Mortgage estimates assume 6.5% fixed rate[5], 30-year term, 20.0% down, $1,800/yr homeowners insurance.

Federal tax calculations[6] assume single filer, standard deduction. State tax uses the top marginal rate times taxable income after the state standard deduction. FICA = 6.2% Social Security (up to wage base) + 1.45% Medicare.

Salary equivalence uses adjusted = salary × (COL_destination / COL_origin). This captures cost-of-living shift but not state income tax differences.

Unemployment figures are the most recent monthly MSA-level readings from the BLS LAUS series[7].

Last reviewed is computed from the maximum retrievedAt across every source this page consumes.

City data from Census Bureau[2], BLS[7], and Zillow[1] (2024-2025). Tax calculations use 2025 IRS rates[6], single filer, standard deduction. Mortgage estimates assume 6.5% PMMS rate[5], 30-year term, 20.0% down. COL Index: 100 = national average[3]. Last reviewed 2026-04-19.