Median rent is 5% lower in Houston ($1,313/mo vs $1,380/mo). Buying is cheaper in Houston, where the median home runs $253,400 versus $315,200. Households earn more in Chicago ($75,134 vs $62,894 a year). Taken together, Houston is the more affordable choice with a cost index of 98.8 against 105.7 — about 7% lower overall prices. After adjusting income for local prices, a typical paycheck stretches further in Chicago, IL.
Quick verdict
Houston is 7% cheaper overall
Cost index: 98.8 in Houston vs 105.7 in Chicago (US average = 100)
City A
Chicago, IL
City B
Houston, TX
How much would you need to earn in Houston, TX to maintain your standard of living from Chicago, IL?
Equivalent salary in Houston, TX
$70,080
You could earn $4,920 less (7% lower) and break even.
Based on BEA Regional Price Parity (cost index) for each city's metro area. A rough estimate of overall purchasing power, not tax or take-home pay.
Metric
Chicago
Illinois
Houston
Texas
👥Population
💰Median Household Income
Annual
🏠Median Gross Rent
Per month
🏡Median Home Value
📊Cost of Living Index
US avg = 100
🔑1BR Fair Market Rent
HUD FMR
🔑2BR Fair Market Rent
HUD FMR
🔑3BR Fair Market Rent
HUD FMR
🌬️Air Quality Index
Lower = cleaner
🏛️Top State Income Tax
Top marginal rate
🧾State Sales Tax
Statewide base rate
🎂Median Age
Years
✓ = better value · Sources: US Census ACS, BEA RPP, HUD FMR, EPA AirNow, Tax Foundation
Median rents are similar in both cities: $1,380/mo in Chicago and $1,313/mo in Houston. Median home values are within 20% of each other: $315,200 in Chicago and $253,400 in Houston.
1BR Fair Market Rent
2BR Fair Market Rent
BLS OEWS 2023 — metro-level data
Texas has no state income tax, while Illinois tops out at 4.95% — giving Houston a clear advantage for high earners. Sales tax is 6.25% in Illinois and 6.25% in Texas; Houston has the lower rate (local add-ons may apply in both).
Chicago
Income tax: 4.95%
Sales tax: 6.25%
Houston
Income tax: None
Sales tax: 6.25%
Chicago has cleaner air on average: 21.0 AQI (Good) compared to 52.0 AQI (Moderate) in the other city. Lower AQI means cleaner, healthier air.
Pick Houston if you prioritize lower overall cost of living (index 98.8 vs 105.7).
Pick Chicago if you prioritize higher median household income ($75,134/yr).
Pick Chicago if you prioritize cleaner air quality (avg AQI 21.0).
Pick Houston if you prioritize no state income tax.
Is Chicago cheaper than Houston?
Houston is cheaper overall, with a cost of living index of 98.8 versus 105.7 (US average = 100). That means prices run about 7% lower in Houston.
How much is rent in Chicago vs Houston?
Median rent is $1,380/mo in Chicago, IL and $1,313/mo in Houston, TX. Houston, TX has the lower rent by about 5%.
Which has higher salaries — Chicago or Houston?
Median household income is $75,134 in Chicago, IL and $62,894 in Houston, TX. Chicago, IL has the higher median income. Note that BLS occupational wages in the table above show wages for specific jobs.
Which city has better air quality?
Chicago, IL has better air quality on average: 21.0 AQI versus 52.0 AQI. Both are EPA AirNow annual averages; lower is better.
Which has lower taxes — Chicago or Houston?
Texas has no state income tax. Illinois has a top rate of 4.95%.
What salary do I need in Houston to match my Chicago income?
To maintain the same purchasing power, a salary of $100,000 in Chicago, IL is equivalent to roughly $93,440 in Houston, TX (using the BEA Regional Price Parity ratio). Use the salary calculator above for any income amount.
Data last updated: December 1, 2024 · Sources: US Census ACS, BEA RPP, BLS OEWS, HUD FMR, EPA AirNow, Tax Foundation · Methodology