Houston, TX variant. This is a Houston, TX-specific version of the Budget Calculator, using pre-defined local figures (tax rates, median home and income values, and typical regional costs). For the full formula, methodology, and FAQ, open the main Budget Calculator.
Budgeting in Houston means stretching the $62,894 median income ($5,241/month) against a cost-of-living index of 97 and $1,700/month median rent.
50/30/20 in Houston
On $5,241/month, the rule allots $2,621 needs, $1,572 wants, $1,048 savings. But Houston rent alone ($1,700/month) is 65% of the needs bucket.
In high-index metros, housing often blows past 50% - forcing roommates, longer commutes, or higher income.
About Houston, TX
Houston residents pay no state or city income tax, since Texas does not impose a personal income tax, leaving more take-home pay relative to many large cities.
Houston has comparatively affordable home prices and rents, supported by ample land and the city's notable lack of formal zoning laws.
Houston's economy is heavily tied to the energy industry, alongside major medical, aerospace, and shipping sectors.
Worked example: rent share in Houston
$1,700 rent ÷ $5,241 monthly income = 32% of gross - well above the 30% rent-burden threshold if over 30%.
Quick reference
- Median home value: $270,000
- Median rent: $1,700/mo
- Median household income: $62,894
- Local sales tax: 8.25%
- Effective property tax rate: 2.31%
- Cost of living index: 97 (US avg = 100)
Frequently Asked Questions
How much does it cost to live in Houston?
Median rent is $1,700/month with a cost index of 97; budget needs around $2,621/month on the median income.
Is rent affordable in Houston?
Median rent is 32% of the median monthly income - above the 30% affordability guideline.