Is it cheaper to live in Houston or Madison?

Houston, TX is cheaper. Its monthly baseline of $1,360 (1BR rent + utilities) runs about 4% below Madison, WI's $1,410, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $46,000 a year in Houston versus $49,000 in Madison.

Which has lower taxes, Houston or Madison?

Houston is taxed under Texas's rules (no state income tax and a 6.25% state sales tax); Madison under Wisconsin's (a top state income tax rate of 7.65% and a 5% state sales tax).

Houston vs Madison Cost of Living 2026

Houston

Texas

$1,360/mo est.

Madison

Wisconsin

$1,410/mo est.

Monthly estimate = 1BR rent + electricity + gas

A one-person monthly baseline (1BR rent plus typical utilities) runs $1,360 in Houston, TX versus $1,410 in Madison, WI. Overall, Houston, TX is roughly 4% cheaper to live in day-to-day than Madison, WI, driven mainly by rent.

Median household income is $62,894 in Houston, TX and $76,983 in Madison, WI — about 18% higher in Madison, WI. Texas has no state income tax and a 6.25% state sales tax; Wisconsin has a top state income tax rate of 7.65% and a 5% state sales tax.

Houston, TX

Madison, WI

Rent

Studio

$1,142

$1,018

+11% in Houston, TX

1 Bedroom

$1,156

$1,219

+5% in Madison, WI

2 Bedroom

$1,375

$1,432

+4% in Madison, WI

3 Bedroom

$1,664

$1,766

+6% in Madison, WI

Buying a Home

Median Home Value

$253,400

$346,900

+37% in Madison, WI

Income

Median Household Income

$62,894

$76,983

+22% in Madison, WI

Metro Median Wage (annual)

$49,410

$58,080

+18% in Madison, WI

People & Lifestyle

Median Age

34.3 yr

31.8 yr

+2.5 yr in Houston, TX

Homeownership

42.0%

46.6%

+4.6 pp in Madison, WI

Bachelor's+ (25+)

36.0%

59.2%

+23.2 pp in Madison, WI

Avg Commute

27.3 min

19.4 min

+7.9 min in Houston, TX

Crime (per 100k/yr)

Violent Crime

1,153.8

259.5

+78% in Houston, TX

Property Crime

4,324.9

1,884.5

+56% 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

70.3°F

46.5°F

+23.8°F in Houston, TX

Annual Precipitation

54.6 in

34.5 in

+20.2 in in Houston, TX

Gas

Regular Gasoline

$3.52/gal

$3.94/gal

+12% in Madison, WI

Area: Houston vs Midwest (PADD 2).

Public Transit

Base Fare (one-way)

$1.25

—

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

Utilities

Electricity (¢/kWh)

16.4

19.7

+20% in Madison, WI

Natural Gas ($/MCF)

$30.48

$11.79

+61% in Houston, TX

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

Groceries

Milk (gal)

$4.00

$4.31

+8% in Madison, WI

Bread (lb)

$1.75

$1.66

+5% in Houston, TX

Eggs (doz)

$2.21

$3.63

+64% in Madison, WI

Ground Beef (lb)

$6.45

$6.77

+5% in Madison, WI

Chicken (lb)

$1.90

$2.10

+10% in Madison, WI

Bananas (lb)

$0.62

about equal

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

State Taxes

Sales Tax (TX / WI)

6.25%

+1.3 pp in TX

Income Tax (top rate)

None

7.65%

+7.7 pp in WI

Houston vs Madison — FAQ

Is it cheaper to live in Houston or Madison?: Houston, TX is cheaper. Its monthly baseline of $1,360 (1BR rent + utilities) runs about 4% below Madison, WI's $1,410, mainly because of rent.
How much more do you need to earn to live in Houston than in Madison?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $46,000 a year in Houston versus $49,000 in Madison.
Which has lower taxes, Houston or Madison?: Houston is taxed under Texas's rules (no state income tax and a 6.25% state sales tax); Madison under Wisconsin's (a top state income tax rate of 7.65% and a 5% 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).