15 Most Affordable Cities To Live In Texas

American flags displayed in front of a southern home

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Texas is an attractive destination for many people seeking affordability, primarily due to its lack of a state income tax and a relatively low overall cost of living. This allows residents to keep a larger portion of their earnings compared to states with high income taxes, making their paychecks stretch further.

The financial benefits extend to retirees, as Texas also does not tax retirement income or Social Security. While property taxes are on the higher side to compensate for the lack of state income tax, the savings in other areas often make Texas a more affordable option overall for many individuals and families.

The state’s economic power, which is the eighth largest when compared to countries around the world, is driven by powerhouse industries such as energy, technology, and manufacturing.

A 2025 analysis by HOMEiA.com identified these 15 cities among the most affordable in Texas, based on factors like housing, groceries, and transportation costs. Scroll below for more.

1. Brownsville, Texas

Located near the southern tip of Texas, it is known for its exceptionally low cost of goods and services.

2. Amarillo, Texas

In the Texas Panhandle, Amarillo offers low rent and affordable housing. The city’s stable, slow growth has contributed to its low prices.

3. Killeen, Texas

Situated in Central Texas, Killeen is recognized for its overall affordability and its proximity to major cities like Austin, Dallas, and San Antonio.

4. Lubbock, Texas

The home of Texas Tech University, Lubbock has a cost of living that is nearly 20% lower than the national average.

5. Corpus Christ, Texas

This coastal city has an overall cost of living below the national average, though its costs for utilities are slightly higher due to air conditioning needs.

6. Waco, Texas

Waco offers an affordable lifestyle and is conveniently located between Dallas and Austin.

7. Abilene, Texas

With a low cost of living, Abilene is an attractive option for those seeking affordability in West Texas.

8. San Antonio, Texas

While being one of Texas’s largest cities, San Antonio maintains a cost of living that is 8% below the national average.

9. Tyler, Texas

Found in East Texas, Tyler is noted for its low living expenses, especially for single-income families.

10. El Paso, Texas

A study by the El Paso Times in early 2025 ranked it as the most affordable city in Texas, with a cost of living index 15.8% below the national average.

11. Wichita Falls, Texas

The cost of living in Wichita Falls is almost 25 points below the national average.

12. Beaumont, Texas

Located on the southeastern coast, Beaumont has one of the lowest median home prices in the state.

13. Midland, Texas

In the oil-rich Permian Basin, Midland has a below-average cost of living, along with incomes that are well above the national median.

14. McAllen, Texas

This city has the lowest cost of living index in a MySA ranking of Texas cities.

15. Weatherford, Texas

With a cost of living index of 89, Weatherford is another highly affordable option.