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Cost of Living: Houston, TX vs Memphis, TN

A data-driven comparison of housing, groceries, transportation, taxes, job market and more. See which city gives you more for your money.

10.4% Memphis, TN is cheaper overall
23.9% 23.9% cheaper housing
2.1% 2.1% cheaper groceries
Updated April 2026 · Data: Bureau of Labor Statistics, U.S. Census Bureau National average = 100

At a Glance

🏠 Housing 23.9% cheaper
Houston
92
Memphis
70
🛒 Groceries 2.1% cheaper
Houston
94
Memphis
92
🚗 Transportation 4.0% cheaper
Houston
100
Memphis
96
🏥 Healthcare 5.3% cheaper
Houston
95
Memphis
90
⚡ Utilities 7.5% cheaper
Houston
106
Memphis
98

Detailed Breakdown

Category Houston, TX Memphis, TN Difference
Overall Cost Index968610.4% less
Housing927023.9% less
Median 1BR Rent$1,200$95020.8% less
Median Home Price$295,000$165,00044.1% less
Groceries94922.1% less
Transportation100964.0% less
Healthcare95905.3% less
Utilities106987.5% less

Tax Comparison

Tax Type Houston, TX Memphis, TN
State Income TaxNone (0%)None (0%)
State Sales Tax6.25%7.00%
Avg Property Tax Rate1.60%0.56%
Estate / Inheritance TaxNoneNone

What You'd Need to Earn

Houston, TX
$67,000
Median household income
Memphis, TN
$48,000
Median household income
⚠️ Heads up: Memphis costs more but median income is lower. You may need to earn more to maintain the same standard of living.

Salary Equivalent Calculator

Find out what you'd need to earn in Memphis to maintain your Houston lifestyle.

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Based on overall cost index: Houston (96) vs Memphis (86). This is an estimate for comparison purposes.

Job Market Snapshot

Unemployment Rate
Houston4.5%
Memphis4.8%
Job Growth (YoY)
Houston3.1%
Memphis1.9%
Top Industries
HoustonEnergy, Healthcare, Aerospace
MemphisLogistics, Healthcare, Manufacturing

Quality of Life

Avg Commute
Houston30 min
Memphis24 min
Walk Score
Houston33
Memphis34
Air Quality (AQI)
Houston52
Memphis44
Avg Temperature
Houston70°F
Memphis63°F
Population
Houston2,304,580
Memphis633,104

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Planning Your Move?

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🏠 Find ApartmentsBrowse rentals in Houston and Memphis → 🚚 Get Moving QuotesCompare prices from top movers → 📈 Check Home ValuesSee real estate trends in both cities → 💼 Search JobsFind open positions in Memphis →

Compare Other Cities

Houston vs Austin → Houston vs Denver → Houston vs Nashville → Memphis vs Raleigh → Memphis vs Portland → Memphis vs Phoenix →

Frequently Asked Questions

Is Houston or Memphis cheaper to live in?+
Memphis is the more affordable option overall. The biggest difference is in housing costs, where the gap is about 23.9%. Day-to-day expenses like groceries and transportation are closer between the two cities.
How much is rent in Houston vs Memphis?+
A typical one-bedroom apartment costs around $1,200/month in Houston and $950/month in Memphis — a difference of about $250 per month.
Which city has lower taxes, Houston or Memphis?+
Texas has a state income tax of None (0%) and sales tax of 6.25%. Tennessee has a state income tax of None (0%) and sales tax of 7.00%. Consider all tax types together when evaluating total tax burden, as states with no income tax often compensate with higher sales or property taxes.
Can I afford to move from Houston to Memphis?+
Median household income in Houston is $67,000 compared to $48,000 in Memphis. Use the salary calculator above to see what you'd need to earn to maintain your current standard of living.
What about buying a home in Houston vs Memphis?+
The median home price in Houston is $295,000 versus $165,000 in Memphis — a difference of $130,000. Property tax rates also differ: Texas averages 1.60% while Tennessee averages 0.56%.