Wondering how far your dollar stretches in McAllen compared to Houston? 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.
| McAllen | Metric | Houston | Difference |
|---|---|---|---|
| 81 | Cost of Living Index | 101 | +24.7% |
| $185,000 | Median Home Price | $320,000 | +73.0% |
| $880 | Median Monthly Rent | $1,262 | +43.4% |
| $44,000 | Median Household Income | $67,800 | +54.1% |
| 1.8% | Property Tax Rate | 1.9% | +5.6% |
| 6.8% | Unemployment Rate | 4.2% | -38.2% |
| 21 min | Average Commute | 29 min | +38.1% |
| 29.4 | Median Age | 34.5 | +17.3% |
| 900,000 | Metro Population | 7,470,000 | +730.0% |
Data sourced from Census Bureau, BLS, Zillow, and ApartmentAdvisor (2024-2025). COL Index: 100 = national average.
Monthly mortgage assumes 6.5% interest, 30-year fixed, 20.0%down payment. PITI includes principal, interest, property tax, and homeowner's insurance.
Buying a home in McAllen costs $1,267/month (PITI) compared to $2,218/month in Houston — a difference of $951/month or $11,412/year. The price-to-income ratio is 4.2x in McAllen versus 4.7x in Houston, suggesting McAllen is relatively more affordable for homebuyers relative to local incomes. At a 15% savings rate, it takes 5.6 years to save a down payment in McAllen compared to 6.3 years in Houston.
Estimated on each city's median household income, single filer, standard deduction, 2025 rates.
| Tax Category | McAllen | Houston |
|---|---|---|
| Gross Income | $44,000 | $67,800 |
| State Income Tax | None | None |
| Federal Income Tax | $3,151 | $6,365 |
| FICA (SS + Medicare) | $3,366 | $5,187 |
| Property Tax (on median home) | $3,330/yr | $6,080/yr |
| State Sales Tax Rate | 6.3% | 6.3% |
| Total Tax Burden | $6,517 (14.8%) | $11,552 (17.0%) |
| Take-Home Pay | $37,483 | $56,248 |
Texas has no state income tax, giving McAllen residents a significant tax advantage. On median household income, total taxes (federal + state + FICA) come to $6,517 in McAllen (14.8% effective) versus $11,552 in Houston (17.0% effective). After taxes, take-home pay is $37,483 in McAllen and $56,248 in Houston. Property taxes add $3,330/year on the median McAllen home versus $6,080/year in Houston.
These figures adjust for cost of living using the formula: adjusted = salary × (COL_destination / COL_origin). If you earn $44,000 in McAllen (COL 81) and relocate to Houston (COL 101), you would need $54,864 to maintain the same purchasing power. This means you would need a raise of $10,864 to maintain the same standard of living in Houston.
Beyond costs, quality of life matters. The average commute in McAllen is 21 minutes versus 29 minutes in Houston, a difference of 8 minutes each way. Houston's lower unemployment rate of 4.2% versus 6.8% suggests a stronger job market. Houston skews slightly older with a median age of 34.5 vs 29.4 in McAllen.
Houston is 24.7% more expensive than McAllen overall. Houston has a cost of living index of 101 compared to 81 for McAllen (national average = 100). The biggest difference is housing: the median home costs $320,000 in Houston vs $185,000 in McAllen.
The median home price in Houston is $320,000, which is $135,000 more than McAllen's median of $185,000. Monthly rent follows a similar pattern: $1,262/month in Houston vs $880/month in McAllen, a difference of $382/month or $4,584/year.
To maintain the same standard of living, a $44,000 salary in McAllen is equivalent to $54,864 in Houston. This is based on the cost of living index ratio: McAllen's COL index of 81 vs Houston's 101. Conversely, $67,800 in Houston equals $54,374 in McAllen.
On a median household income, the combined federal, state, and FICA tax burden is $6,517 (14.8% effective rate) in McAllen vs $11,552 (17.0% effective rate) in Houston. Property taxes on the median home are $3,330/year in McAllen (1.8% rate) vs $6,080/year in Houston (1.9% rate). Sales tax rates are 6.3% in Texas and 6.3% in Texas.
McAllen median household income: $44,000/yr. Houston median household income: $67,800/yr (Census ACS).
Median monthly rent: $880 in McAllen vs $1,262 in Houston. Annualized that is $10,560 vs $15,144.
McAllen offers a lower cost of living (index 81 vs 101), which lets remote-workers keeping a coastal salary stretch further. Houston typically wins on amenities and labor-market depth.
McAllen and Houston 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.
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.
No. The McAllen vs Houston 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.
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 .