Median rent is 8% lower in New Orleans ($1,251/mo vs $1,361/mo). Buying is cheaper in Houston, where the median home runs $277,800 versus $315,700. Households earn more in Houston ($64,813 vs $56,631 a year). Taken together, New Orleans is the more affordable choice with a cost index of 91.2 against 99.7 — about 9% lower overall prices. After adjusting income for local prices, a typical paycheck stretches further in Houston, TX.
Cost of living verdict
New Orleans is 9% cheaper overall
Cost of Living Index: 91.2 in New Orleans vs 99.7 in Houston (US national average = 100)
City A
Houston, TX
City B
New Orleans, LA
How much would you need to earn in New Orleans, LA to maintain your standard of living from Houston, TX?
Equivalent salary in New Orleans, LA
$68,578
You could earn $6,422 less (9% 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
New Orleans
Louisiana
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 New Orleans at $1,251/mo compared to $1,361/mo in Houston (8% gap). Median home values are within 12% of each other: $277,800 in Houston and $315,700 in New Orleans.
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
New Orleans
Income tax: N/A
Sales tax: N/A
New Orleans has cleaner air on average: 52.0 AQI (Moderate) compared to 59.0 AQI (Moderate) in the other city. Lower AQI means cleaner, healthier air.
Pick New Orleans if you prioritize lower overall cost of living (index 91.2 vs 99.7).
Pick Houston if you prioritize higher median household income ($64,813/yr).
Pick New Orleans if you prioritize cleaner air quality (avg AQI 52.0).
Is Houston cheaper than New Orleans?
New Orleans is cheaper overall, with a cost of living index of 91.2 versus 99.7 (US average = 100). That means prices run about 9% lower in New Orleans.
How much is rent in Houston vs New Orleans?
Median rent is $1,361/mo in Houston, TX and $1,251/mo in New Orleans, LA. New Orleans, LA has the lower rent by about 8%.
Which has higher salaries — Houston or New Orleans?
Median household income is $64,813 in Houston, TX and $56,631 in New Orleans, LA. 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?
New Orleans, LA has better air quality on average: 52.0 AQI versus 59.0 AQI. Both are EPA AirNow annual averages; lower is better.
Which has lower taxes — Houston or New Orleans?
State tax data is not yet available for one or both cities.
What salary do I need in New Orleans to match my Houston income?
To maintain the same purchasing power, a salary of $100,000 in Houston, TX is equivalent to roughly $91,437 in New Orleans, LA (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
