Is it cheaper to live in Houston or Salem?

Salem, OR is cheaper. Its monthly baseline of $1,170 (1BR rent + utilities) runs about 14% below Houston, TX's $1,360, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $46,000 a year in Houston versus $40,000 in Salem.

Which has lower taxes, Houston or Salem?

Houston is taxed under Texas's rules (no state income tax and a 6.25% state sales tax); Salem under Oregon's (a top state income tax rate of 9.90% and no state sales tax).

Houston vs Salem Cost of Living 2026

Houston

Texas

$1,360/mo est.

Salem

Oregon

$1,170/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 $1,170 in Salem, OR. Overall, Salem, OR is roughly 14% cheaper to live in day-to-day than Houston, TX, driven mainly by rent.

Median household income is $62,894 in Houston, TX and $71,900 in Salem, OR — about 13% higher in Salem, OR. Texas has no state income tax and a 6.25% state sales tax; Oregon has a top state income tax rate of 9.90% and no state sales tax.

Houston, TX

Salem, OR

Rent

Studio

$1,142

$1,075

+6% in Houston, TX

1 Bedroom

$1,156

$989

+14% in Houston, TX

2 Bedroom

$1,375

$1,337

+3% in Houston, TX

3 Bedroom

$1,664

$1,778

+7% in Salem, OR

Buying a Home

Median Home Value

$253,400

$382,400

+51% in Salem, OR

Income

Median Household Income

$62,894

$71,900

+14% in Salem, OR

Metro Median Wage (annual)

$49,410

$55,310

+12% in Salem, OR

People & Lifestyle

Median Age

34.3 yr

35.7 yr

+1.4 yr in Salem, OR

Homeownership

42.0%

55.7%

+13.7 pp in Salem, OR

Bachelor's+ (25+)

36.0%

31.4%

+4.6 pp in Houston, TX

Avg Commute

27.3 min

22.4 min

+4.9 min in Houston, TX

Crime (per 100k/yr)

Violent Crime

1,153.8

540.6

+53% in Houston, TX

Property Crime

4,324.9

2,878.6

+33% 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

53.0°F

+17.3°F in Houston, TX

Annual Precipitation

54.6 in

39.7 in

+15.0 in in Houston, TX

Gas

Regular Gasoline

$3.52/gal

$5.09/gal

+44% in Salem, OR

Area: Houston vs West Coast (PADD 5).

Public Transit

Base Fare (one-way)

$1.25

—

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

Utilities

Electricity (¢/kWh)

16.4

16.3

+1% in Houston, TX

Natural Gas ($/MCF)

$30.48

$20.59

+32% in Houston, TX

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

Groceries

Milk (gal)

$4.00

$4.82

+20% in Salem, OR

Bread (lb)

$1.75

$2.04

+17% in Salem, OR

Eggs (doz)

$2.21

$2.19

+1% in Houston, TX

Ground Beef (lb)

$6.45

$7.36

+14% in Salem, OR

Chicken (lb)

$1.90

$2.01

+6% in Salem, OR

Bananas (lb)

$0.62

$0.70

+14% in Salem, OR

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

State Taxes

Sales Tax (TX / OR)

6.25%

None

+6.3 pp in TX

Income Tax (top rate)

None

9.90%

+9.9 pp in OR

Houston vs Salem — FAQ

Is it cheaper to live in Houston or Salem?: Salem, OR is cheaper. Its monthly baseline of $1,170 (1BR rent + utilities) runs about 14% below Houston, TX's $1,360, mainly because of rent.
How much more do you need to earn to live in Houston than in Salem?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $46,000 a year in Houston versus $40,000 in Salem.
Which has lower taxes, Houston or Salem?: Houston is taxed under Texas's rules (no state income tax and a 6.25% state sales tax); Salem under Oregon's (a top state income tax rate of 9.90% and no 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).