A+
14%
Overall NAT. AVG.
13%
Goods & Services NAT. AVG.
24%
Housing NAT. AVG.
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Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.
The cost of living index is based on a national average of 100. For example, if the cost of living is 90, then it is 10% lower than average. If the cost of living is 110, then it is 10% higher than average. The breakdown for each index is as follows: goods & services (33%), groceries (13%), health care (5%), housing (30%), transportation (9%) and utilities (10%). If the cost of living data was unavailable for this city, estimates based upon nearby cities were used.
Index McAllen Texas National
Cost of living8692100
Goods & Services8896100
Groceries9196100
Health care7694100
Housing7683100
Transportation9192100
Utilities106104100

An Overview of Cost of Living in McAllen, TX

Knowing the cost of living in McAllen allows individuals to create a realistic budget. This helps them understand how their income will cover expenses and whether they need to make financial adjustments. The cost of living in any region can fluctuate due to various factors. To assess the cost of living consistently across different areas, a national average of 100 serves as the basis for the cost of living index. The cost of living in McAllen stands at 86, marking it 14% lower than the national average.

Everyday staples like clothes, toiletries and entertainment expenses play a big role in your total living costs. But in McAllen, these goods are 12.5% cheaper than the national average. So, you can enjoy what you need and love without emptying your wallet. Plus, you'll have more cash to put towards your savings or any other money goals you have, which is a real boost for your financial well-being.

Grocery prices make up 13% of the overall cost of living index. With grocery costs on the rise, it's a challenge to find cities where food won't drain your wallet. But in McAllen, the grocery index is 8.6% below average, which means you can enjoy more affordable groceries when compared to other areas across the country.

What Do Locals Say About the Cost of Living in McAllen?

When it comes to knowing a city, its residents are the experts. We conducted a survey with 11 locals to understand their opinions on the cost of living in McAllen. The results indicated that 82% found it reasonably priced with decreasing prices of goods and services, while 18% viewed it as quite expensive, with increasing prices.

Is McAllen Affordable?

Wondering if McAllen is affordable? It's a question that often comes up when you're thinking about a new city since affordability can really shape your decisions. The cost of living index (covered earlier), housing expenses and income levels all play a part in the affordability equation. In McAllen, for example, the median home price is 28.8% lower than what folks pay nationally, and monthly rent is 12.6% lower than the usual rates. Plus, income levels matter too, with McAllen boasting a median household income of $49,259, which is 11% lower than the national average.

What Factors can Influence the Cost of Living in McAllen?

Taxes: Cities that enforce higher taxes, covering both sales taxes and income taxes, can be a factor contributing to a higher cost of living. Paying more in taxes for everyday essentials like clothing and food inevitably leads to higher expenses. A higher income tax rate can further contribute to an overall elevated cost of living. In McAllen, the baseline sales tax rate begins at 6.25%, and income tax rates start at 0%.

Groceries: The costs associated with groceries have witnessed substantial increases over the past 2-3 years. In select markets, food prices have escalated by more than 20% during this timeframe, whereas others have seen more restrained upticks. The variances in food expenses can exert a considerable influence on the overall cost of living in a given locale. In McAllen, the groceries index is 8.6% lower than the national average.

Urbanization: Larger, urban areas boasting abundant amenities and robust employment prospects often exhibit a heightened cost of living, driven by the increased demand for services and residential relocation. Consequently, this leads to elevated home prices and higher rental rates. In contrast, sparsely populated rural locales or regions marked by diminished demand typically offer a more limited range of amenities and experience slower job market expansion. This translates into a more affordable cost of living.

Where is the Data From?

The McAllen cost of living data displayed above is derived from the C2ER cost of living index to provide a useful and reasonably accurate measure of living cost differences in urban areas. Published on a quarterly basis, it compiles data from more than 300 independent researchers, encompassing over 60 goods and services. These items have been meticulously selected to represent various consumer expenditure categories, in 6 categories. Weightings assigned to cost differentials draw from government survey data tracking spending patterns among professional and executive households. While the C2ER index excludes data on sales or income tax rates, AreaVibes incorporates tax rates into the overall cost of living score for each region.

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Cost Of Living Quick Facts

  • The cost of living in McAllen is 7% lower than the Texas average
  • The cost of living in McAllen is 14% lower than the national average
  • McAllen housing is 24% lower than the national average
  • Texas general sales tax is 22% higher than the national average
  • Texas state income tax is 100% lower than the national average

Most Affordable Places to Live in and Around McAllen

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Compare McAllen, TX Cost of Living

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      Salary Calculator

      This is how much you would need to earn in
      Price difference in compared to
      Cost of living index
      Goods & Services index
      Groceries index
      Health care index
      Housing index
      Transportation index
      Utilities index

      Median Income & Debt-To-Income Ratio

      Median Income Per Year Per Month Max Budget (28% DTI) Max Budget (36% DTI)
      Owners$63,909$5,326$1,491$1,917
      Renters$30,404$2,534$709$912
      The percentage of monthly income spent on housing related expenses can help predict the affordability of housing in McAllen, TX, as well as what the overall cost of living might be. Generally, a good rule to follow is that the debt-to-income (DTI) level you want to maintain is 28 percent or less of your income on your rent or mortgage payments and not more than 36 percent of income on all expenses and debts. In McAllen, homeowners have a median income of $63,909. Using that number, a maximum of $1,491 per month should be allocated to housing expenses. For those who are renting instead of owning, the median income is $30,404, which means there is a maximum of $709 to be spent on the costs of renting a home or apartment.

      Texas Sales Tax

      State General Sales Tax With Max Surtax
      Texas 6.25% 8.25%

      Texas Income Tax

      State Income Tax (Low) Income Tax (High)
      Texas 0% 0%

      Goods & Services

      Item McAllen National avg. Difference
      Haircut $17.78$24.2626.7%
      Beauty Salon $30.94$45.5632.1%
      Toothpaste $3.40$3.708.2%
      Shampoo $1.05$1.2818.0%
      Movie $11.98$12.131.3%
      Bowling $20.00$18.0011.1%

      Groceries

      Item McAllen National avg. Difference
      Ground Beef $5.77$5.841.1%
      Fried Chicken $1.41$1.5710.1%
      Milk $4.51$4.673.5%
      Potatoes $4.84$4.932.0%
      Pizza $11.29$12.096.6%
      Beer $10.29$10.411.2%

      Health Care

      Item McAllen National avg. Difference
      Optometrist $115.00$125.688.5%
      Doctor $119.56$135.7811.9%
      Dentist $113.53$113.290.2%
      Ibuprofen $10.25$10.653.8%
      Lipitor $465.59$468.600.6%

      Housing

      Item McAllen National avg. Difference
      Home Price $131,500.00$184,700.0028.8%
      Avg. Mortgage Payment $1,864.04$2,346.6920.6%
      Apartment Rent $829.00$949.0012.6%

      Transportation

      Item McAllen National avg. Difference
      Gasoline $3.16$3.468.7%
      Tire Balancing $54.06$59.929.8%

      Utilities

      Item McAllen National avg. Difference
      All Electricity $221.71$193.9914.3%
      Phone $208.71$192.258.6%
      Although the cost of living data is updated regularly, this cost of living information is to be used as estimates only as prices can change on an ongoing basis.

      Nearby cities with low cost of living

      City Population Cost of Living Index National Avg.
      Campo Verde, TX169919.3%
      E. Lopez, TX225919.3%
      Palo Blanco, TX60919.3%
      Tierra Dorada, TX0919.3%
      Evergreen, TX39919.3%
      McAllen, TX142,5578613.7%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Syracuse, NY142,553909.6%
      Whitby, ON142,607n/a 
      Mesquite, TX142,4291022.1%
      Milton, ON142,128n/a 
      Pasadena, CA142,01719191.3%
      McAllen, TX142,5578613.7%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.