Texas has long been one of the fastest-growing states in the U.S., attracting newcomers from across the country with its relatively affordable cost of living, booming job market, and vibrant culture. For single individuals—whether students, young professionals, or those relocating for a fresh start—understanding the true cost of living in Texas is crucial when budgeting and planning for life in the Lone Star State.
This guide provides a detailed, fact-based breakdown of expenses a single person can expect, covering housing, utilities, transportation, food, healthcare, taxes, and personal expenses. By the end, you will have a clear picture of how much it costs to live alone in Texas and how it compares to national averages.
Cost of Living in Texas for a Single Person
The cost of living for a single person in Texas depends largely on the city, lifestyle, and housing situation. However, Texas consistently ranks below the U.S. national average in overall living costs. According to the U.S. Bureau of Economic Analysis (BEA) and Council for Community and Economic Research (C2ER), Texas has a cost-of-living index of around 92–94, with 100 representing the national average.
On average, a single person in Texas needs about $2,500–$3,500 per month (or $30,000–$42,000 annually) to cover basic living expenses comfortably. This estimate excludes luxury spending but includes housing, utilities, transportation, groceries, healthcare, and taxes.
Average Monthly Expenses for a Single Person in Texas
| Expense Category | Average Monthly Cost | Notes |
|---|---|---|
| Housing (Rent) | $950 – $1,500 | Varies by city and neighborhood |
| Utilities | $150 – $250 | Electricity, water, internet |
| Transportation | $300 – $600 | Gas, car payment, insurance, or public transit |
| Groceries & Food | $350 – $500 | Based on USDA moderate-cost plan |
| Healthcare | $300 – $450 | Insurance premiums + out-of-pocket costs |
| Personal Expenses | $250 – $400 | Clothing, entertainment, phone |
| Taxes (State + Local) | Lower than national | No state income tax; sales/property tax applies |
| Total | $2,500 – $3,500 | Depending on location & lifestyle |
Housing Costs in Texas
For most single people, housing is the largest monthly expense. Fortunately, Texas offers relatively affordable housing compared to many other U.S. states.
- Statewide Average Rent (2025 data):
- One-bedroom apartment: $1,150 per month
- Two-bedroom apartment: $1,380 per month
- Major City Comparisons (One-Bedroom Rent):
- Austin: $1,550 – $1,750
- Dallas: $1,350 – $1,500
- Houston: $1,200 – $1,400
- San Antonio: $1,050 – $1,200
- El Paso: $850 – $1,000
- Lubbock/Waco: $800 – $1,000
Key Insight: Smaller cities and towns are significantly cheaper, while Austin remains the priciest due to tech growth and high demand.
If you choose to share housing, splitting rent with a roommate can cut costs by 30–40%, making living alone more of a lifestyle choice than a financial necessity.
Utilities and Internet Costs
Texas utilities can vary widely because of climate differences and deregulated energy markets in many areas. Summers are particularly hot, and air conditioning can drive electricity bills up significantly.
- Electricity: $100 – $160 per month (higher in summer)
- Water & Trash: $30 – $60 per month
- Internet: $60 – $80 per month (high-speed broadband)
- Cell Phone: $50 – $80 per month
On average, a single person should budget $150–$250 monthly for utilities and internet.
Tip: In deregulated energy zones like Dallas or Houston, you can shop among providers for better electricity rates.
Transportation Costs
Texas is a car-centric state. While large metro areas like Dallas, Houston, and Austin have public transit, it is not as extensive as in cities like New York or Chicago. For most single people, owning a car is the most practical option.
Car Ownership Costs in Texas
- Car Payment (used sedan average): $300 – $400 per month
- Gasoline: $120 – $180 per month (Texas has some of the lowest gas prices in the U.S., averaging around $3.00 per gallon in 2025)
- Car Insurance: $100 – $150 per month for a single adult (varies by age and driving record)
- Maintenance & Registration: $40 – $70 per month (averaged annually)
Total Car Costs: $550 – $800 per month
Public Transportation Costs
- Dallas (DART Pass): $96 per month
- Houston (METRO): $60 – $90 per month
- Austin (CapMetro): $41 per month
- San Antonio (VIA): $38 per month
If you live in the city center and rely on buses or light rail, monthly transportation can be as low as $50–$100. However, most single residents in Texas still find cars more convenient.
Food and Grocery Costs
Food costs in Texas remain close to national averages, though dining out is often cheaper than in states like California or New York.
Grocery Costs
The USDA Moderate-Cost Food Plan estimates that a single adult in the U.S. spends $350–$450 per month on groceries. Texas aligns closely with this range.
Common grocery prices in Texas (2025 averages):
- Gallon of milk: $3.40
- Loaf of bread: $2.90
- Dozen eggs: $2.70
- Chicken breast (per lb): $3.20
- Apples (per lb): $1.60
- Rice (per lb): $1.10
Dining Out Costs
- Fast food meal: $8–$10
- Mid-range restaurant meal: $15–$20 per person
- Coffee: $4–$5
A single person who eats out moderately can expect to spend $450–$600 per month total on food and dining.
Healthcare Costs
Healthcare in Texas is slightly above the national average due to insurance premiums. While costs vary based on coverage, here are statewide averages for a single adult:
- Health Insurance Premium (individual plan, ACA marketplace): $350 – $420 per month
- Out-of-Pocket Costs (co-pays, prescriptions, etc.): $50 – $80 per month
Total Healthcare: $300 – $450 per month
Employers often subsidize health insurance, lowering costs. If uninsured, expect higher out-of-pocket expenses.
Taxes in Texas
One major financial advantage of living in Texas is the absence of a state income tax. However, the state makes up for this through sales and property taxes.
- State Income Tax: 0%
- Sales Tax: 6.25% statewide, with local jurisdictions adding up to 2%, making the maximum rate 8.25%
- Property Tax: Among the highest in the nation, averaging 1.6–1.8% of a property’s assessed value (mostly affects homeowners, not renters)
For a single renter, the main impact is through sales tax applied to everyday purchases.
Personal and Miscellaneous Expenses
Beyond essentials, single individuals will spend on entertainment, clothing, and personal needs.
- Gym Membership: $30 – $60 per month
- Streaming Services (Netflix, Spotify, etc.): $20 – $40 per month
- Clothing & Personal Care: $100 – $150 per month
- Entertainment (movies, nightlife, hobbies): $100 – $200 per month
On average, personal expenses total $250–$400 monthly.
Cost of Living Differences by City in Texas
Texas is large, and living costs vary widely depending on location. Here’s a city-by-city comparison for a single person renting a one-bedroom apartment:
| City | Monthly Rent | Utilities | Transportation | Groceries | Total Monthly Cost |
|---|---|---|---|---|---|
| Austin | $1,600 | $200 | $600 | $450 | ~$3,400 |
| Dallas | $1,400 | $220 | $550 | $450 | ~$3,000 |
| Houston | $1,250 | $210 | $550 | $450 | ~$2,900 |
| San Antonio | $1,100 | $200 | $500 | $400 | ~$2,600 |
| El Paso | $900 | $180 | $450 | $380 | ~$2,300 |
| Lubbock | $850 | $180 | $450 | $380 | ~$2,200 |
Austin is the most expensive, while smaller cities like El Paso and Lubbock are the most affordable.
Comparison with National Cost of Living
According to C2ER’s Cost of Living Index, Texas sits 6–8% below the national average overall.
- Housing: 15–20% below national average (except Austin)
- Transportation: Slightly cheaper (lower gas prices, but high car dependence)
- Food: Comparable to U.S. average
- Healthcare: Slightly higher than average
- Taxes: Favorable due to no state income tax
This means a single person’s dollar generally stretches further in Texas compared to states like California, New York, or Massachusetts.
We’ve covered the essentials of living costs—housing, utilities, transportation, food, healthcare, and personal expenses. Now let’s dive deeper into affordability trends, how income compares with expenses, and practical budgeting strategies for single adults in Texas.
Housing Affordability Trends in Texas
Housing affordability is one of the main factors drawing people to Texas. While home prices and rents have risen in recent years due to population growth, most areas remain more affordable than the national average.
Rental Trends
- Austin: Rental prices surged over the past decade due to tech expansion. Though rents have stabilized somewhat since 2023, they remain the highest in the state.
- Dallas–Fort Worth (DFW): Rents continue to rise steadily, reflecting job market growth in finance, logistics, and technology.
- Houston: Housing remains relatively affordable compared to other large U.S. metro areas, though inner-city rents have grown faster.
- Smaller Cities: Markets like El Paso, Waco, and Lubbock still offer some of the most affordable rentals in the state.
Homeownership Costs (for reference)
While many single people rent, homeownership is still a possibility in Texas at a younger age compared to states with higher costs.
- Median Home Price in Texas (2025): ~$310,000
- National Median Home Price (2025): ~$420,000
This affordability explains why many residents eventually transition from renting to owning after building financial stability.
Income vs. Expenses for a Single Person in Texas
The next logical question is: how do these living costs compare with what people actually earn in Texas?
Average Income Levels
According to the U.S. Bureau of Labor Statistics (BLS) and the U.S. Census Bureau (2024 data):
- Median Household Income in Texas: ~$75,000
- Median Personal Income (Single Worker): ~$38,000 – $45,000 annually
- Average Hourly Wage (Statewide): ~$27/hour
Matching Income with Costs
- A single person earning $40,000 per year (around $3,300/month before taxes) would find it manageable in most Texas cities, especially outside Austin or Dallas.
- Living in Austin with an income under $50,000 may require budget-conscious living, such as choosing roommates or suburbs.
- In smaller cities like El Paso or Lubbock, even modest incomes can cover expenses comfortably.
Bottom line: Texas remains one of the few states where a single-income household can achieve financial stability without needing an exceptionally high salary.
Budgeting Tips for Single People Living in Texas
Living within your means requires careful planning, especially in more expensive urban centers. Here are proven strategies:
1. Housing
- Consider roommates: Sharing rent and utilities can save up to $800 per month in Austin or Dallas.
- Live in suburbs: Choosing housing outside the city center reduces rent while still offering access to jobs and amenities.
2. Transportation
- Buy used cars: With lower upfront costs, a well-maintained used car can cut monthly payments significantly.
- Compare insurance rates: Texas allows shopping across providers; premiums can vary by hundreds annually.
- Public transit: In Houston, Dallas, and Austin, monthly passes cost less than a single week of gas for most commuters.
3. Food & Dining
- Cook at home: Preparing meals can cut food costs by 30–40%.
- Shop at warehouse clubs: Buying staples in bulk at Costco or Sam’s Club lowers per-unit costs.
- Take advantage of local markets: Texas has abundant farmers’ markets with affordable seasonal produce.
4. Utilities & Internet
- Choose energy plans: In deregulated markets, comparing electricity providers often saves $20–$40 per month.
- Bundle services: Internet and mobile service bundles sometimes lower costs.
5. Personal & Entertainment
- Prioritize free activities: Texas offers state parks, festivals, and cultural events at low or no cost.
- Limit subscriptions: Streaming and memberships add up; choose the ones you use most.
Quality of Life Factors Beyond Cost
While affordability is important, cost of living only tells part of the story. Texas offers a mix of advantages and challenges for single individuals.
Advantages
- No state income tax: This boosts take-home pay compared to high-tax states.
- Job market strength: Texas leads in energy, healthcare, tech, and finance, providing diverse employment opportunities.
- Cultural diversity: Large cities like Houston and Dallas rank among the most diverse in the U.S., offering rich cultural experiences.
- Space and housing availability: Texas generally avoids the housing shortages of coastal states.
Challenges
- Transportation dependence: Outside a few urban cores, car ownership is almost unavoidable.
- Climate: Summers are extremely hot, driving up utility bills and affecting comfort.
- Healthcare access: While healthcare quality is strong in metro areas, rural access can be limited.
How Texas Compares with Other States
To put Texas into perspective, here’s how living costs stack up against other major states:
| State | Cost of Living Index | Average Rent (1BR) | State Income Tax | Notes |
|---|---|---|---|---|
| Texas | 92–94 | $1,150 | 0% | Affordable housing, no income tax |
| California | 140+ | $2,200+ | 9.3% (median) | High housing and taxes |
| New York | 130+ | $2,300+ (NYC) | 6.85% (median) | High rent, high tax |
| Florida | 101–102 | $1,450 | 0% | Slightly above average costs |
| Illinois | 95–96 | $1,200 | 4.95% | Close to Texas, but with income tax |
Texas offers some of the lowest combined costs when factoring in rent, taxes, and everyday expenses.
Saving Potential for a Single Person in Texas
A crucial part of evaluating cost of living is understanding how much a single person can realistically save.
Example Budget (Single Person in Dallas)
- Income: $45,000 annually (~$3,750/month before taxes)
- Expenses: ~$2,800 per month
- Savings Potential: ~$800 per month (around 20% of income)
This savings potential is higher than in states like California or New York, where even higher salaries are offset by extreme housing costs.
Long-Term Affordability Outlook
Texas is expected to remain relatively affordable, but certain trends may affect costs:
- Population Growth: Continued migration to cities like Austin and Dallas will keep pushing rents upward.
- Housing Development: Suburban expansion helps maintain affordability by increasing supply.
- Infrastructure: Investment in public transit may eventually reduce transportation costs for city dwellers.
- Energy Market Fluctuations: Deregulated electricity markets can lead to seasonal spikes in bills.
Overall, while specific metro areas may see higher costs, Texas as a whole is likely to remain below the national cost-of-living average.
Final Thoughts
For a single person, Texas strikes a balance between affordability and opportunity. With monthly costs averaging $2,500–$3,500, most working adults earning a modest salary can live comfortably, especially outside the most expensive cities.
The absence of a state income tax, relatively affordable housing, and strong job markets give Texas a competitive edge for those seeking both financial stability and quality of life.
However, costs vary greatly between cities—Austin is closer to California prices, while El Paso and Lubbock remain among the cheapest metro areas in the U.S. With smart budgeting, Texas offers not only affordability but also the chance to save for future goals.