Median rent is 13% lower in Memphis ($1,181/mo vs $1,361/mo). Buying is cheaper in Memphis, where the median home runs $169,000 versus $277,800. Households earn more in Houston ($64,813 vs $51,736 a year). Taken together, Memphis is the more affordable choice with a cost index of 91.9 against 99.7 — about 8% lower overall prices. After adjusting income for local prices, a typical paycheck stretches further in Houston, TX.
Cost of living verdict
Memphis is 8% cheaper overall
Cost of Living Index: 91.9 in Memphis vs 99.7 in Houston (US national average = 100)
City A
Houston, TX
City B
Memphis, TN
How much would you need to earn in Memphis, TN to maintain your standard of living from Houston, TX?
Equivalent salary in Memphis, TN
$69,144
You could earn $5,856 less (8% 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
Houston
Texas
Memphis
Tennessee
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 rent is modestly lower in Memphis at $1,181/mo compared to $1,361/mo in Houston (13% gap). Home buyers face a steeper market in Houston: the median home is $277,800 versus $169,000 in Memphis — 39% more expensive.
1BR Fair Market Rent
2BR Fair Market Rent
BLS OEWS 2023 — metro-level data
State tax data is not yet available for these cities.
Houston
Income tax: N/A
Sales tax: N/A
Memphis
Income tax: N/A
Sales tax: N/A
Memphis has cleaner air on average: 19.0 AQI (Good) compared to 59.0 AQI (Moderate) in the other city. Lower AQI means cleaner, healthier air.
Pick Memphis if you prioritize lower overall cost of living (index 91.9 vs 99.7).
Pick Houston if you prioritize higher median household income ($64,813/yr).
Pick Memphis if you prioritize cheaper rent ($1,181/mo median).
Pick Memphis if you prioritize cleaner air quality (avg AQI 19.0).
Is Houston cheaper than Memphis?
Memphis is cheaper overall, with a cost of living index of 91.9 versus 99.7 (US average = 100). That means prices run about 8% lower in Memphis.
How much is rent in Houston vs Memphis?
Median rent is $1,361/mo in Houston, TX and $1,181/mo in Memphis, TN. Memphis, TN has the lower rent by about 13%.
Which has higher salaries — Houston or Memphis?
Median household income is $64,813 in Houston, TX and $51,736 in Memphis, TN. Houston, TX 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?
Memphis, TN has better air quality on average: 19.0 AQI versus 59.0 AQI. Both are EPA AirNow annual averages; lower is better.
Which has lower taxes — Houston or Memphis?
State tax data is not yet available for one or both cities.
What salary do I need in Memphis to match my Houston income?
To maintain the same purchasing power, a salary of $100,000 in Houston, TX is equivalent to roughly $92,192 in Memphis, TN (using the BEA Regional Price Parity ratio). Use the salary calculator above for any income amount.
Data last updated: December 1, 2026 · Sources: US Census ACS, BEA RPP, BLS OEWS, HUD FMR, EPA AirNow, Tax Foundation · Methodology
