Texas home prices average 26.4% below the national median in the most affordable cities while offering zero state income tax. This means a family earning $75,000 saves approximately $3,750 annually compared to high-tax states like New York or California.
Whether you dream of weekend trips to Palo Duro Canyon or lazy afternoons at Padre Island beaches, Texas’ most affordable cities make that lifestyle accessible. This guide reveals where your dollar stretches furthest in America’s second-largest state.
Key Takeaways
- Wichita Falls offers the lowest housing costs with median homes at $163,276 and rent averaging $1,200 monthly.
- Cost of living savings range from 8.7% to 26.4% below national average across all ranked cities.
- Zero state income tax saves Texas residents thousands annually compared to high-tax states.
- Military-friendly communities like Killeen and El Paso provide additional benefits for service members.
- Outdoor recreation access spans from Gulf beaches to desert mountains without premium location pricing.
Comparing Texas’ Most Affordable Cities
| City | Median Home Price | Median Rent | Cost of Living vs US | Best For |
| Amarillo | $193,956 | $1375 | -26.4% | Young professionals, outdoor enthusiasts |
| Brownsville | $187,055 | $1,500 | -25.1% | Retirees, Spanish speakers |
| Wichita Falls | $163,276 | $1,200 | -23.7% | Military families, first-time buyers |
| San Angelo | $214,971 | $1,350 | -18.9% | University students, families |
| Lubbock | $199,759 | $1,399 | -18.9% | College students, music lovers |
| El Paso | $223,218 | $1,525 | -18.1% | Military, bilingual professionals |
| Killeen | $217,009 | $1,200 | -16.3% | Military families, contractors |
7 Most Affordable Places to Live in Texas in 2025
1. Amarillo
- Median Home Price: $193,956
- Median Rent: $1,375
- Cost of Living: 26.4% below US average
- Best For: Young professionals, outdoor enthusiasts, families wanting small-city charm
- Highlights: Palo Duro Canyon State Park, Big Texan Steak Ranch, Historic Sixth Street District
Amarillo stands as the Panhandle’s powerhouse where cowboy culture meets modern convenience. Palo Duro Canyon State Park provides access to America’s second-largest canyon just minutes from downtown. Top schools like Tascosa High School serve families well in this community of 200,000 residents.
Major employers including BSA Health System and Pantex create stable job opportunities despite higher crime rates than the state average. The city’s compact layout keeps everything accessible while harsh winter weather and limited public transportation present realistic challenges. Young professionals find excellent homeownership opportunities in neighborhoods near West Texas A&M University.
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2. Brownsville
- Median Home Price: $187,055
- Median Rent: $1,500
- Cost of Living: 25.1% below US average
- Best For: Retirees, Spanish speakers, nature lovers, space enthusiasts
- Highlights: SpaceX Starship facility, Sabal Palm Sanctuary, Historic Downtown District
The “Sunset Capital of the World” offers year-round tropical weather where Mexican heritage creates vibrant border culture. Healthcare costs run 5% below national average while Resaca de la Palma State Park provides pristine hiking trails. Veterans Memorial High School leads educational options in this predominantly Hispanic community of 185,000.
Retirees benefit from warm weather and affordable living costs despite higher property crime rates in certain areas. The SpaceX Starship development facility brings high-tech employment opportunities to balance traditional government and healthcare jobs. Hurricane risk and limited job diversity outside major sectors require careful consideration for most affordable places to live in Texas.
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3. Wichita Falls
- Median Home Price: $163,276
- Median Rent: $1,200
- Cost of Living: 23.7% below US average
- Best For: Military families, retirees, first-time homebuyers
- Highlights: Sheppard Air Force Base, Lucy Park trails, Hotter ‘N Hell Hundred bicycle race
Military-friendly Wichita Falls centers around Sheppard Air Force Base with strong community support networks. Lucy Park offers 178 acres of hiking and biking trails along the scenic Wichita River. S.H. Rider High School provides quality education for families in this compact city of 102,000 residents.
The community’s 15-minute accessibility to all amenities appeals to military families and retirees seeking small-town hospitality. Defense-related employment provides stability while tornado alley location and limited nightlife options challenge younger residents. First-time homebuyers find exceptional value in neighborhoods near the base.
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4. San Angelo
- Median Home Price: $214,971
- Median Rent: $1,350
- Cost of Living: 18.9% below US average
- Best For: University students, young families, outdoor enthusiasts
- Highlights: Concho River Walk, Angelo State University, Historic Fort Concho
The “Oasis of West Texas” blends university town energy with oil industry heritage along the scenic Concho River. San Angelo State Park provides 7,677 acres of hiking and wildlife viewing just minutes from downtown. Central High School serves families well in this diverse community where 40% of residents are Hispanic.
Angelo State University creates vibrant college atmosphere while oil and agriculture provide economic stability. The Concho River Walk offers miles of recreational trails though violent crime rates run slightly above average. Young professionals appreciate the balance of small-city amenities with rural access in cheapest places to live in Texas.
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5. Lubbock
- Median Home Price: $199,759
- Median Rent: $1,399
- Cost of Living: 18.9% below US average
- Best For: College students, young professionals, music lovers
- Highlights: Texas Tech University, Buddy Holly Center, Llano Estacado Winery
Lubbock pulses as the “Hub City” where Texas Tech University creates vibrant college town atmosphere. The Buddy Holly Center celebrates the rock legend’s legacy while local vineyards make this area a surprising wine destination. Monterey High School provides excellent education in this community of 264,000 with a median age of 29 years.
Cotton agriculture and growing tech sectors provide employment opportunities for young professionals and university graduates. Texas Tech Red Raiders dominate the local sports scene though higher crime rates and frequent dust storms present challenges. The Depot District offers nightlife and entertainment options for budget-friendly Texas cities.
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- Median Home Price: $223,218
- Median Rent: $1,525
- Cost of Living: 18.1% below US average
- Best For: Military families, bilingual professionals, outdoor enthusiasts
- Highlights: Franklin Mountains State Park, Scenic Drive, Historic Plaza Theatre
El Paso thrives as the “Sun City” where three states and two countries create unique bicultural experiences. Franklin Mountains State Park offers desert hiking just minutes from downtown while Scenic Drive provides stunning city views. Coronado High School serves families in this diverse metropolitan area of 685,000 residents.
Fort Bliss provides stable military employment while the border location creates authentic Mexican-American cultural experiences. Crime rates decreased 6% in 2024 making this the safest large city in Texas despite extreme summer temperatures. Bilingual professionals find excellent opportunities in affordable cities Florida cannot match.
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7. Killeen
- Median Home Price: $217,009
- Median Rent: $1,200
- Cost of Living: 16.3% below US average
- Best For: Active military families, defense contractors, veterans
- Highlights: Fort Cavazos, Stillhouse Hollow Lake, 1st Cavalry Division Museum
Killeen serves as military town extraordinaire built around massive Fort Cavazos installation. Stillhouse Hollow Lake offers boating and fishing just 20 minutes from base while Lions Club Park provides family recreation. Harker Heights High School leads educational options for this transient but tight-knit community of 155,000.
Fort Cavazos creates stable defense-related employment with strong military family support networks throughout the area. The diverse population includes 35% African American and 25% Hispanic residents though higher crime rates reflect transient military lifestyle. Veterans and active duty families benefit from VA loan programs in budget-friendly Texas cities.
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How We Ranked Texas’ Most Affordable Cities in 2025
Our comprehensive analysis evaluates Texas cities using a weighted scoring system prioritizing housing costs (40%), overall cost of living (25%), economic opportunity (15%), quality of life (10%), education quality (5%), and infrastructure (5%). This methodology ensures practical affordability while considering livability factors that impact daily life.
Data sources include Texas A&M Real Estate Research Center, U.S. Census Bureau, RentCafe, Texas Education Agency, Bureau of Labor Statistics, Houzeo Housing Market Analysis, NeighborhoodScout Crime Data, and bestplaces.net Cost of Living Index. Multiple authoritative sources cross-verify all statistics for accuracy and reliability
What Drives Affordability in Texas?
Texas maintains low housing costs through abundant land availability, business-friendly regulations, and zero state income tax policies. Property taxes vary by county but homestead exemptions reduce burden for primary residences while utility costs run 8-12% below national average statewide.
Insurance considerations include higher homeowner’s premiums due to weather risks, averaging $3,500-4,200 annually versus $1,200 national average. However, zero state income tax saves middle-class families $2,000-5,000 annually depending on income levels, offsetting increased insurance costs significantly.
Smart Tips for Texas Living
- Research property tax rates by county – Travis County averages 1.9% while Chambers County runs 0.9% annually
- Consider flood insurance requirements – Gulf Coast cities require additional coverage averaging $500-800 yearly
- Plan for summer utility costs – Air conditioning bills peak at $200-350 monthly June through September
- Explore military benefits – Cities near bases offer commissary access, reduced services, and veteran programs
- Budget for vehicle maintenance – Texas heat and distances increase tire wear and maintenance needs 20-30%
Should you Move to Texas?
Texas delivers exceptional affordability across diverse communities from border towns to university cities. Zero state income tax, abundant housing inventory, and business-friendly policies create savings that offset higher property taxes and insurance costs for most residents.
Whether you prefer a thriving university town like Lubbock, military community support in Killeen, or metropolitan city amenities in El Paso, Texas offers options for every lifestyle and budget. These ten cities provide the foundation for building wealth while enjoying authentic Lone Star culture and recreational opportunities.
Frequently Asked Questions
What are the top 7 most affordable cities in Texas?
The top 7 affordable cities include Amarillo, Brownsville, Wichita Falls, San Angelo, Lubbock, El Paso, Killeen. Each offers unique advantages from beach access to university amenities.
Which Texas cities are best for families on a budget?
Amarillo, and San Angelo provide excellent family amenities including top-rated schools, recreational facilities, and strong community support networks. These cities balance affordability with quality education and safety.
Are there affordable beach towns in Texas?
Brownsville offers coastal living at affordable prices. Brownsville offers Gulf proximity with tropical weather year-round.
What makes Texas one of the most affordable states?
Zero state income tax, abundant land for development, business-friendly regulations, and lower labor costs create affordability advantages. Property tax rates vary but homestead exemptions provide relief for primary residences.
