Median rent is 23% lower in Houston ($1,361/mo vs $1,779/mo). Buying is cheaper in Houston, where the median home runs $277,800 versus $506,300. Households earn more in Sacramento ($87,321 vs $64,813 a year). Taken together, Houston is the more affordable choice with a cost index of 99.7 against 109.1 — about 9% lower overall prices. After adjusting income for local prices, a typical paycheck stretches further in Sacramento, CA.
Cost of living verdict
Houston is 9% cheaper overall
Cost of Living Index: 99.7 in Houston vs 109.1 in Sacramento (US national average = 100)
City A
Houston, TX
City B
Sacramento, CA
How much would you need to earn in Sacramento, CA to maintain your standard of living from Houston, TX?
Equivalent salary in Sacramento, CA
$82,036
You'd need $7,036 more (9% higher).
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
Sacramento
California
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
Renters will find significantly cheaper housing in Houston — median rent of $1,361/mo versus $1,779/mo in Sacramento, a 23% difference. Home buyers face a steeper market in Sacramento: the median home is $506,300 versus $277,800 in Houston — 45% 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
Sacramento
Income tax: N/A
Sales tax: N/A
Sacramento 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 Houston if you prioritize lower overall cost of living (index 99.7 vs 109.1).
Pick Sacramento if you prioritize higher median household income ($87,321/yr).
Pick Houston if you prioritize cheaper rent ($1,361/mo median).
Pick Sacramento if you prioritize cleaner air quality (avg AQI 52.0).
Is Houston cheaper than Sacramento?
Houston is cheaper overall, with a cost of living index of 99.7 versus 109.1 (US average = 100). That means prices run about 9% lower in Houston.
How much is rent in Houston vs Sacramento?
Median rent is $1,361/mo in Houston, TX and $1,779/mo in Sacramento, CA. Houston, TX has the lower rent by about 23%.
Which has higher salaries — Houston or Sacramento?
Median household income is $64,813 in Houston, TX and $87,321 in Sacramento, CA. Sacramento, CA 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?
Sacramento, CA 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 Sacramento?
State tax data is not yet available for one or both cities.
What salary do I need in Sacramento to match my Houston income?
To maintain the same purchasing power, a salary of $100,000 in Houston, TX is equivalent to roughly $109,382 in Sacramento, CA (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
