Is it cheaper to live in Houston or Omaha?

Omaha, NE is cheaper. Its monthly baseline of $1,120 (1BR rent + utilities) runs about 17% below Houston, TX's $1,350, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $46,000 a year in Houston versus $39,000 in Omaha.

Which has lower taxes, Houston or Omaha?

Houston is taxed under Texas's rules (no state income tax and a 6.25% state sales tax); Omaha under Nebraska's (a top state income tax rate of 4.55% and a 5.5% state sales tax).

Houston vs Omaha Cost of Living 2026

Houston

Texas

$1,350/mo est.

Omaha

Nebraska

$1,120/mo est.

Monthly estimate = 1BR rent + electricity + gas

A one-person monthly baseline (1BR rent plus typical utilities) runs $1,350 in Houston, TX versus $1,120 in Omaha, NE. Overall, Omaha, NE is roughly 17% cheaper to live in day-to-day than Houston, TX, driven mainly by rent.

Median household income is $62,894 in Houston, TX and $72,708 in Omaha, NE — about 13% higher in Omaha, NE. Texas has no state income tax and a 6.25% state sales tax; Nebraska has a top state income tax rate of 4.55% and a 5.5% state sales tax.

Houston, TX

Omaha, NE

Rent

Studio

$1,142

$908

+20% in Houston, TX

1 Bedroom

$1,156

$984

+15% in Houston, TX

2 Bedroom

$1,375

$1,193

+13% in Houston, TX

3 Bedroom

$1,664

$1,437

+14% in Houston, TX

Buying a Home

Median Home Value

$253,400

$230,100

+9% in Houston, TX

Income

Median Household Income

$62,894

$72,708

+16% in Omaha, NE

Metro Median Wage (annual)

$49,410

$49,660

+1% in Omaha, NE

People & Lifestyle

Median Age

34.3 yr

35.3 yr

+1.0 yr in Omaha, NE

Homeownership

42.0%

57.7%

+15.7 pp in Omaha, NE

Bachelor's+ (25+)

36.0%

40.3%

+4.3 pp in Omaha, NE

Avg Commute

27.3 min

19.6 min

+7.7 min in Houston, TX

Crime (per 100k/yr)

Violent Crime

1,155.2

358.6

+69% in Houston, TX

Property Crime

4,325.3

3,153

+27% 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

51.1°F

+19.2°F in Houston, TX

Annual Precipitation

54.6 in

30.6 in

+24.0 in in Houston, TX

Gas

Regular Gasoline

$3.85/gal

$4.35/gal

+13% in Omaha, NE

Area: Houston vs Midwest (PADD 2).

Public Transit

Base Fare (one-way)

$1.25

about equal

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

Utilities

Electricity (¢/kWh)

16.4

13.1

+20% in Houston, TX

Natural Gas ($/MCF)

$24.61

$12.06

+51% in Houston, TX

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

Groceries

Milk (gal)

$4.16

$4.14

+1% in Houston, TX

Bread (lb)

$1.73

$1.79

+4% in Omaha, NE

Eggs (doz)

$2.19

$3.63

+66% in Omaha, NE

Ground Beef (lb)

$6.56

$6.97

+6% in Omaha, NE

Chicken (lb)

$1.90

$2.15

+13% in Omaha, NE

Bananas (lb)

$0.61

$0.63

+3% in Omaha, NE

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

State Taxes

Sales Tax (TX / NE)

6.25%

5.5%

+0.8 pp in TX

Income Tax (top rate)

None

4.55%

+4.5 pp in NE

Houston vs Omaha — FAQ

Is it cheaper to live in Houston or Omaha?: Omaha, NE is cheaper. Its monthly baseline of $1,120 (1BR rent + utilities) runs about 17% below Houston, TX's $1,350, mainly because of rent.
How much more do you need to earn to live in Houston than in Omaha?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $46,000 a year in Houston versus $39,000 in Omaha.
Which has lower taxes, Houston or Omaha?: Houston is taxed under Texas's rules (no state income tax and a 6.25% state sales tax); Omaha under Nebraska's (a top state income tax rate of 4.55% and a 5.5% 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).