Median rent is 5% lower in Houston ($1,361/mo vs $1,440/mo). Buying is cheaper in Houston, where the median home runs $277,800 versus $334,100. Households earn more in Chicago ($77,902 vs $64,813 a year). Taken together, Houston is the more affordable choice with a cost index of 99.7 against 102.5 — about 3% lower overall prices. After adjusting income for local prices, a typical paycheck stretches further in Chicago, IL.
Cost of living verdict
Houston is 3% cheaper overall
Cost of Living Index: 99.7 in Houston vs 102.5 in Chicago (US national 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
$72,986
You could earn $2,014 less (3% lower) and break even.
Based on BEA Regional Price Parity (cost index) for each metro area. This estimates overall purchasing power; it does not account for taxes or take-home pay differences.
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: Census ACS, BEA, HUD Fair Market Rents, EPA AirNow, Tax Foundation
Median rents are similar in both cities: $1,440/mo in Chicago and $1,361/mo in Houston. Median home values are within 17% of each other: $334,100 in Chicago and $277,800 in Houston.
Metric
Chicago
Houston
Software Developer
Registered Nurse
Elementary Teacher
Electrician
Accountant
Higher wage highlighted · BLS OEWS 2023 (metro-level data)
State tax data is not yet available for these cities.
Chicago
Income tax: N/A
Sales tax: N/A
Houston
Income tax: N/A
Sales tax: N/A
Chicago has cleaner air on average: 31.0 AQI (Good) compared to 59.0 AQI (Moderate) in the other city. Lower AQI means cleaner, healthier air.
Pick Chicago if you prioritize higher median household income ($77,902/yr).
Pick Chicago if you prioritize cleaner air quality (avg AQI 31.0).
Houston is cheaper overall, with a cost of living index of 99.7 versus 102.5 (US average = 100). That means prices run about 3% lower in Houston.
Median rent is $1,440/mo in Chicago, IL and $1,361/mo in Houston, TX. Houston, TX has the lower rent by about 5%.
Median household income is $77,902 in Chicago, IL and $64,813 in Houston, TX. Chicago, IL has the higher median income. Note that BLS occupational wages in the table above show wages for specific jobs.
Chicago, IL has better air quality on average: 31.0 AQI versus 59.0 AQI. Both are EPA AirNow annual averages; lower is better.
State tax data is not yet available for one or both cities.
To maintain the same purchasing power, a salary of $100,000 in Chicago, IL is equivalent to roughly $97,315 in Houston, TX (using the BEA Regional Price Parity ratio). Use the salary calculator above for any income amount.
Data last updated: June 1, 2026 · Sources: US Census ACS, BEA RPP, BLS OEWS, HUD FMR, EPA AirNow, Tax Foundation · Methodology
