Cost of Living in Mcallen, TX
Mcallen cost of living index: 71.1 (below the US average). Median home price: $269,000.
Updated 2026 • Based on 3 local zip codes
📍 Some data sourced from nearby metro area
% below the national average
Housing
Data from 3 zip codes
Housing costs in Mcallen, TX based on real market data from 3 local zip codes.
Considering a move to Mcallen, TX? With a housing index of 60.53, the cost of living remains relatively affordable. The median home price is at 269000.0, making homeownership viable for many first-time buyers. Additionally, rental options are moderate, with average rents for a 2-bedroom apartment at 1183.33 and a house at . Keep in mind that lower housing indices like this often reflect community growth, promising potential appreciation. Overall, Mcallen presents a balanced opportunity for both renting and purchasing properties.
Last updated: January 2026
Utilities
The cost of utilities such as electricity, natural gas, and other services can significantly impact the overall cost of living.
Living in Mcallen, TX could entail variable utility costs. Electricity costs sit at $14.47, while natural gas is priced at $26.29 per Thousand Cubic Feet. Expect to budget about $200.0 monthly for other services like water and garbage.
Cost Breakdown by Category
Local Income & Economy in Mcallen, TX
How far does your money go in Mcallen? Understanding the relationship between income and cost of living is key to evaluating affordability.
How We Calculate Adjusted Purchasing Power in Mcallen
The adjusted purchasing power shows what a Mcallen, TX household income is actually worth after accounting for local prices. We calculate it using the formula: Purchasing Power = Median Income ÷ Cost of Living Index × 100
For Mcallen, that's $56,326 ÷ 71.1 × 100 = $79,221. This means a household earning the median income in Mcallen has the equivalent buying power of $79,221 in a city where the cost of living index equals the national baseline of 100.
Mcallen is well below the national cost of living average at 71.1, making it one of the more affordable places to live in TX. The median income of $56,326 has an effective purchasing power of $79,221 — a meaningful boost that allows residents to save more, invest in real estate, or enjoy a higher standard of living compared to expensive metro areas.
Combined with a low poverty rate of 15% and healthy job market (5.0% unemployment), Mcallen offers strong value for families, investors, and anyone looking to relocate to a city where income goes further.
💡 Purchasing power is calculated by dividing the local median household income by the cost of living index and multiplying by 100. A result higher than the nominal income means your money goes further; a lower result means local prices erode your earnings. The US baseline cost of living index is 100.
Pros & Cons of Living in Mcallen
Pros
- • Good schools available
- • Friendly local residents
- • Strong job market growth
- • Rich cultural diversity
- • Warm weather year-round
- • Family-friendly community
- • Low cost of living
- • Affordable housing options
- • Vibrant local festivals
- • Various outdoor activities
Cons
- • Less public transportation
- • Traffic congestion issues
- • Higher crime rates reported
- • Limited nightlife options
- • Limited shopping options
- • Political polarization exists
- • Extreme summer heat
- • School quality varies greatly
- • Occasional flooding concerns
- • Poverty affecting some areas
💡City Insights
Mcallen scores 8/10 for affordability, 5/10 for safety, and 5/10 for family-friendliness — an good overall profile. Its strongest aspect is affordability, making it particularly suitable for budget-conscious buyers. This balanced profile makes Mcallen worth considering for various lifestyle priorities.
Frequently Asked Questions
What is the cost of living in Mcallen, TX? ▼
The cost of living in Mcallen, TX is 29% lower than the national average, with a cost of living index of 71 (where 100 represents the U.S. average). Housing typically accounts for the largest portion of living expenses. See full cost of living breakdown →
How much does it cost to buy or rent a home in Mcallen, TX? ▼
In Mcallen, TX, The median home price is $269,000. requiring approximately $100,500 annual income to afford. Average rent is $1,183/month (requiring ~$47,333/year income). The local median household income is $56,326, making homeownership attainable for typical residents. Explore Mcallen real estate data →
Is Mcallen, TX a safe place to live? ▼
Mcallen, TX is average in terms of safety, with crime rates near the national average. Safety varies significantly by neighborhood. View detailed Mcallen crime statistics →
What salary do you need to live comfortably in Mcallen, TX? ▼
To live comfortably in Mcallen, TX and afford a median-priced home of $269,000, you would typically need a household income of $67,250 to $84,062 per year. The local median household income is $56,326. Renting requires approximately $47,333/year (at $1,183/month). See full affordability analysis →
What are the best neighborhoods in Mcallen, TX? ▼
The best neighborhoods in Mcallen, TX depend on your priorities. For families, look for areas near top-rated schools with lower crime rates. For affordability, neighborhoods throughout the city offer good value since the median home price of $269,000 is below the national average.
How are the taxes in Mcallen, TX? ▼
Tax rates in Mcallen, TX include state and local components. The cost of living index of 71 suggests a lower overall tax and expense burden cost environment compared to the national average. View detailed Mcallen tax information →
How does Mcallen, TX compare to nearby cities? ▼
Mcallen, TX offers a more affordable alternative to nearby communities. With a cost of living index of 71, median home prices of $269,000, and a crime rate of 0 per 1,000 residents, you can compare these metrics side-by-side. Use the compare feature to evaluate specific cities.
What is the weather like in Mcallen, TX? ▼
Weather in Mcallen, TX varies by season. Climate data varies by season. View detailed Mcallen climate & environment data →
What factors affect cost of living in Mcallen, TX? ▼
The main factors affecting cost of living in Mcallen, TX include housing costs (the biggest factor), utilities, groceries, transportation, and healthcare. Local taxes and the overall economic conditions also play a role.
Housing Costs by Zip Code
Detailed housing data across 3 zip codes in Mcallen, TX.
| Zip Code | Median Home Price | Avg Rent | 2BR Rent | For Sale | For Rent |
|---|---|---|---|---|---|
| 78501 | $269,000 | $1,441/mo | $1,150/mo | 329 | 180 |
| 78503 | $188,000 | $1,638/mo | $1,250/mo | 196 | 86 |
| 78504 | $323,000 | $1,562/mo | $1,150/mo | 623 | 312 |
Explore More About Mcallen, TX
📅 Last Updated: January 2026
Sources: U.S. Census Bureau (ACS), Bureau of Labor Statistics, Council for Community and Economic Research (C2ER), Zillow, Redfin