Is it cheaper to live in Fairbanks or Houston?

Fairbanks, AK is cheaper. Its monthly baseline of $1,350 (1BR rent + utilities) runs about 1% below Houston, TX's $1,360, mainly because of electricity costs.

How much more do you need to earn to live in Fairbanks than in Houston?

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $43,000 a year in Fairbanks versus $46,000 in Houston.

Which has lower taxes, Fairbanks or Houston?

Fairbanks is taxed under Alaska's rules (no state income tax and no state sales tax); Houston under Texas's (no state income tax and a 6.25% state sales tax).

Fairbanks vs Houston Cost of Living 2026

Fairbanks

Alaska

$1,350/mo est.

Houston

Texas

$1,360/mo est.

Monthly estimate = 1BR rent + electricity + gas

A one-person monthly baseline (1BR rent plus typical utilities) runs $1,350 in Fairbanks, AK versus $1,360 in Houston, TX. Overall, Fairbanks, AK is roughly 1% cheaper to live in day-to-day than Houston, TX, driven mainly by electricity costs.

Median household income is $72,077 in Fairbanks, AK and $62,894 in Houston, TX — about 13% higher in Fairbanks, AK. Alaska has no state income tax and no state sales tax; Texas has no state income tax and a 6.25% state sales tax.

Fairbanks, AK

Houston, TX

Rent

Studio

$883

$1,142

+29% in Houston, TX

1 Bedroom

$1,076

$1,156

+7% in Houston, TX

2 Bedroom

$1,428

$1,375

+4% in Fairbanks, AK

3 Bedroom

$2,019

$1,664

+18% in Fairbanks, AK

Buying a Home

Median Home Value

$255,700

$253,400

+1% in Fairbanks, AK

Income

Median Household Income

$72,077

$62,894

+13% in Fairbanks, AK

Metro Median Wage (annual)

$61,810

$49,410

+20% in Fairbanks, AK

People & Lifestyle

Median Age

28.6 yr

34.3 yr

+5.7 yr in Houston, TX

Homeownership

40.5%

42.0%

+1.5 pp in Houston, TX

Bachelor's+ (25+)

26.5%

36.0%

+9.5 pp in Houston, TX

Avg Commute

14.1 min

27.3 min

+13.2 min in Houston, TX

Crime (per 100k/yr)

Violent Crime

726.1

1,153.8

+59% in Houston, TX

Property Crime

3,504.2

4,324.9

+23% in Houston, TX

FBI Crime Data Explorer. Offenses per 100,000 residents per year; agency reporting practices vary, so this is approximate.

Climate

Avg Annual Temperature

27.7°F

70.3°F

+42.6°F in Houston, TX

Annual Precipitation

10.8 in

54.6 in

+43.8 in in Houston, TX

Gas

Regular Gasoline

$5.21/gal

$3.52/gal

+32% in Fairbanks, AK

Area: West Coast (PADD 5) vs Houston.

Public Transit

Base Fare (one-way)

—

$1.25

Adult base one-way fare — — vs Houston METRO (2026).

Utilities

Electricity (¢/kWh)

28.2

15.9

+43% in Fairbanks, AK

Natural Gas ($/MCF)

$17.35

$31.89

+84% in Houston, TX

Residential, state-level averages (EIA). MCF = 1,000 cubic feet.

Groceries

Milk (gal)

$4.82

$4.00

+17% in Fairbanks, AK

Bread (lb)

$2.04

$1.75

+14% in Fairbanks, AK

Eggs (doz)

$2.19

$2.21

+1% in Houston, TX

Ground Beef (lb)

$7.36

$6.45

+12% in Fairbanks, AK

Chicken (lb)

$2.01

$1.90

+6% in Fairbanks, AK

Bananas (lb)

$0.70

$0.62

+12% in Fairbanks, AK

Average prices — West vs South (BLS). Regional where available, otherwise U.S. average.

State Taxes

Sales Tax (AK / TX)

None

6.25%

+6.3 pp in TX

Income Tax (top rate)

None

about equal

Fairbanks vs Houston — FAQ

Is it cheaper to live in Fairbanks or Houston?: Fairbanks, AK is cheaper. Its monthly baseline of $1,350 (1BR rent + utilities) runs about 1% below Houston, TX's $1,360, mainly because of electricity costs.
How much more do you need to earn to live in Fairbanks than in Houston?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $43,000 a year in Fairbanks versus $46,000 in Houston.
Which has lower taxes, Fairbanks or Houston?: Fairbanks is taxed under Alaska's rules (no state income tax and no state sales tax); Houston under Texas's (no state income tax and a 6.25% state sales tax).

Sources: US Census Bureau, ACS 5-Year (rent, income, home value, demographics); NOAA Climate Normals 1981–2010 (climate); EIA weekly retail (gas); Tax Foundation 2026 (state taxes).