The 77640 zip code in Port Arthur tops our ranking of the most affordable places to live in Texas.
We looked at 804 zip codes in the state, evaluating home values, rental costs, energy rates, property taxes, and five other affordability indicators. We used the data we gathered to calculate our proprietary Affordability Score for each zip code.
Top 10 most affordable places to live in Texas
| Rank | City | Affordability Score | Median home value | Rental costs |
|---|---|---|---|---|
| 1 | Port Arthur 🥇 | 100 | $104,671 | $798 |
| 2 | Beaumont🥈 | 98.1 | $86,055 | $942 |
| 3 | Nederland 🥉 | 94.0 | $196,705 | $1,124 |
| 4 | Port Neches | 91.6 | $222,750 | $1,256 |
| 5 | Midland | 91.3 | $225,069 | $1,403 |
| 6 | Odessa | 90.8 | $185,105 | $1,307 |
| 7 | Groves | 90.3 | $168,353 | $1,325 |
| 8 | Borger | 90.2 | $92,848 | $1,696 |
| 9 | Tyler | 89.8 | $170,111 | $1,392 |
| 10 | Victoria | 89.5 | $149,672 | $996 |
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1. Port Arthur
Here's why the 77640 zip code in Port Arthur is Texas's most affordable place to live.
🔎 Key data about Port Arthur
| Data point | Value | Rank (out of 804 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 100 | No. 1 | N/A |
| Median home value | $104,671[1] | No. 13 | -$231,261.57 |
| Home affordability ratio | 2.1 | No. 8 | -2.1 |
| Home value five-year change | 22.3%[2] | No. 56 | -23.8% |
| Home value one-year forecast | -5.6%[3] | No. 5 | -4.5% |
| Rental costs | $798[4] | No. 1 | -$898 |
| Rent affordability ratio | 1.62% | No. 86 | -0.5% |
| Median household income | $49,122[5] | No. 675 | -$30,507 |
| Property taxes | $1,243[6] | No. 26 | -$3,172 |
| Energy costs | $0.13 kWh[7] | No. 31 | $0.00 |
Port Arthur's 77640 zip code is the cheapest place to live in Texas, leading the 804 markets we evaluated.
The median home value is $104,671, making it the 13th-cheapest housing market in the state. Forecasts project a -5.6% change in home values in the next year. Rent in the zip code averages $798 per month, which is the 86th cheapest amount in Texas.
The median property tax for homeowners in Port Arthur is $1,243 per household, the No. 26 ranked market in Texas.
Residents pay $0.13 per kWh of electricity, which ranks No. 31 among Texas markets.
2. Beaumont
The 77701 zip code is the 2nd-cheapest place to live in Texas.
🔎 Key data about Beaumont
| Data point | Value | Rank (out of 804 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 98.1 | No. 2 | N/A |
| Median home value | $86,055[8] | No. 5 | -$249,877.35 |
| Home affordability ratio | 1.8 | No. 3 | -2.4 |
| Home value five-year change | 5.9%[9] | No. 5 | -40.2% |
| Home value one-year forecast | -5.6%[10] | No. 5 | -4.5% |
| Rental costs | $942[11] | No. 7 | -$754 |
| Rent affordability ratio | 2.02% | No. 257 | -0.1% |
| Median household income | $46,653[12] | No. 700 | -$32,976 |
| Property taxes | $904[13] | No. 6 | -$3,511 |
| Energy costs | $0.13 kWh[14] | No. 31 | $0.00 |
Beaumont's 77701 zip code has a median home value of $86,055, which is the 5th-cheapest housing market in Texas. You can rent for an average of $942 per month. That's the 7th-cheapest price in the state.
The average household income in the zip code is $46,653, which ranks 700th-highest in the state.
Homeowners in Beaumont pay a median property tax of $904 per year, making it the 6th-most affordable market in Texas.
Beaumont ranks No. 31 among Texas energy markets. You'll pay $0.13 per kWh of electricity.
3. Nederland
The 3rd-cheapest place to live in Texas is Nederland's 77627 zip code.
🔎 Key data about Nederland
| Data point | Value | Rank (out of 804 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 94.0 | No. 3 | N/A |
| Median home value | $196,705[15] | No. 167 | -$139,227.90 |
| Home affordability ratio | 2.6 | No. 38 | -1.6 |
| Home value five-year change | 18.6%[16] | No. 44 | -27.6% |
| Home value one-year forecast | -4.2%[17] | No. 28 | -3.1% |
| Rental costs | $1,124[18] | No. 43 | -$572 |
| Rent affordability ratio | 1.49% | No. 36 | -0.6% |
| Median household income | $75,461[19] | No. 340 | -$4,168 |
| Property taxes | $2,868[20] | No. 329 | -$1,547 |
| Energy costs | $0.13 kWh[21] | No. 31 | $0.00 |
The No. 167 cheapest housing in Texas is Nederland's 77627 zip code, with a median home value of $196,705. Rents in the market average $1,124 per month, making it the 43rd-most affordable rental market in the state.
The median property tax for households in Nederland is $2,868, which makes it the 329th-cheapest place in Texas. Nederland ranks No. 31 among Texas markets by energy costs. Residents pay $0.13 per kWh of electricity.
4. Port Neches
The 77651 zip code in Port Neches comes in at No. 4 on our list of the cheapest places to live in Texas.
🔎 Key data about Port Neches
| Data point | Value | Rank (out of 804 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 91.6 | No. 4 | N/A |
| Median home value | $222,750[22] | No. 246 | -$113,182.58 |
| Home affordability ratio | 2.6 | No. 39 | -1.6 |
| Home value five-year change | 27.2%[23] | No. 94 | -18.9% |
| Home value one-year forecast | -4.1%[24] | No. 29 | -3.0% |
| Rental costs | $1,256[25] | No. 85 | -$440 |
| Rent affordability ratio | 1.48% | No. 33 | -0.7% |
| Median household income | $85,086[26] | No. 242 | $5,457 |
| Property taxes | $3,296[27] | No. 392 | -$1,119 |
| Energy costs | $0.13 kWh[28] | No. 31 | $0.00 |
The No. 246 cheapest housing market in Texas is Port Neches's 77651 zip code, where the median home value is $222,750. Renters here pay an average of $1,256 per month.
When it comes to energy costs, Port Neches ranks 31st among Texas markets. Residents pay $0.13 per kWh of electricity.
The median property tax for households in the zip code is $3,296, which makes it the 392nd-cheapest market in Texas.
5. Midland
The 79703 zip code in Midland ranks No. 5 among Texas's most affordable places to live.
🔎 Key data about Midland
| Data point | Value | Rank (out of 804 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 91.3 | No. 5 | N/A |
| Median home value | $225,069[29] | No. 250 | -$110,863.33 |
| Home affordability ratio | 2.5 | No. 28 | -1.7 |
| Home value five-year change | 17.4%[30] | No. 37 | -28.7% |
| Home value one-year forecast | -4.9%[31] | No. 18 | -3.8% |
| Rental costs | $1,403[32] | No. 151 | -$292 |
| Rent affordability ratio | 1.58% | No. 69 | -0.5% |
| Median household income | $88,718[33] | No. 216 | $9,089 |
| Property taxes | $2,600[34] | No. 294 | -$1,815 |
| Energy costs | $0.14 kWh[35] | No. 142 | $0.00 |
Midland's 79703 zip code has a median home value of $225,069, the 250th-cheapest market in the state. Forecasts project a -4.9% change in home values in the next year.
The median property tax per household in Midland is $2,600. It's the 294th-cheapest market by tax rate in Texas.
6. Odessa
The No. 6 most affordable place to live in Texas is the 79761 zip code.
🔎 Key data about Odessa
| Data point | Value | Rank (out of 804 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 90.8 | No. 6 | N/A |
| Median home value | $185,105[36] | No. 135 | -$150,827.93 |
| Home affordability ratio | 2.8 | No. 55 | -1.4 |
| Home value five-year change | 16.5%[37] | No. 34 | -29.6% |
| Home value one-year forecast | -3.8%[38] | No. 37 | -2.7% |
| Rental costs | $1,307[39] | No. 102 | -$389 |
| Rent affordability ratio | 1.96% | No. 230 | -0.2% |
| Median household income | $66,593[40] | No. 443 | -$13,036 |
| Property taxes | $1,844[41] | No. 145 | -$2,571 |
| Energy costs | $0.14 kWh[42] | No. 142 | $0.00 |
The back half of our top 10 kicks off with Odessa's 79761 zip code, which has the 135th-cheapest home values in Texas. The median home value is $185,105. Rents average $1,307 per month, making it the 102nd-most affordable rental market in the state.
Residents pay $0.14 per kWh of electricity. It's the 142nd-cheapest energy market.
7. Groves
Groves's 77619 zip code is the 7th-cheapest place to live in Texas.
🔎 Key data about Groves
| Data point | Value | Rank (out of 804 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 90.3 | No. 7 | N/A |
| Median home value | $168,353[43] | No. 87 | -$167,579.31 |
| Home affordability ratio | 2.6 | No. 37 | -1.6 |
| Home value five-year change | 23.7%[44] | No. 62 | -22.4% |
| Home value one-year forecast | -4.7%[45] | No. 21 | -3.6% |
| Rental costs | $1,325[46] | No. 113 | -$371 |
| Rent affordability ratio | 2.05% | No. 263 | -0.1% |
| Median household income | $64,737[47] | No. 466 | -$14,892 |
| Property taxes | $2,371[48] | No. 250 | -$2,044 |
| Energy costs | $0.13 kWh[49] | No. 31 | $0.00 |
You'll find the 87th-cheapest home values in Texas in Groves's 77619 zip code. The median value: $168,353. Renters in Groves pay an average of $1,325 per month.
Homeowners in Groves pay a median property tax of $2,371 per year, which is Texas's 250th-most affordable market.
The average household income is $64,737, which ranks 466th-highest in the state.
8. Borger
The 8th-cheapest place to live in Texas is Borger's 79007 zip code.
🔎 Key data about Borger
| Data point | Value | Rank (out of 804 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 90.2 | No. 8 | N/A |
| Median home value | $92,848[50] | No. 8 | -$243,084.77 |
| Home affordability ratio | 1.6 | No. 1 | -2.6 |
| Home value five-year change | 14.6%[51] | No. 26 | -31.6% |
| Home value one-year forecast | -4.7%[52] | No. 21 | -3.6% |
| Rental costs | $1,696[53] | No. 326 | $0 |
| Rent affordability ratio | 2.13% | No. 303 | 0.0% |
| Median household income | $58,524[54] | No. 538 | -$21,105 |
| Property taxes | $1,537[55] | No. 73 | -$2,878 |
| Energy costs | $0.13 kWh[56] | No. 113 | $0.00 |
The 8th-cheapest housing market in Texas is Borger's 79007 zip code, with a median home value of $92,848. Renters pay an average of $1,696 per month, the No. 326 rental market in the state.
The median property tax for households in Borger is $1,537, which makes it the 73rd-cheapest place in Texas. The average household income of $58,524 ranks 538th.
9. Tyler
Tyler's 75708 zip code sneaks into the top ten of Texas's most affordable places to live.
🔎 Key data about Tyler
| Data point | Value | Rank (out of 804 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 89.8 | No. 9 | N/A |
| Median home value | $170,111[57] | No. 93 | -$165,821.83 |
| Home affordability ratio | 2.1 | No. 7 | -2.1 |
| Home value five-year change | 53.4%[58] | No. 577 | 7.2% |
| Home value one-year forecast | 0.0%[59] | No. 714 | 1.1% |
| Rental costs | $1,392[60] | No. 144 | -$304 |
| Rent affordability ratio | 1.74% | No. 139 | -0.4% |
| Median household income | $79,864[61] | No. 300 | $235 |
| Property taxes | $1,378[62] | No. 42 | -$3,037 |
| Energy costs | $0.13 kWh[63] | No. 1 | -$0.01 |
The 93rd-cheapest housing market in Texas is Tyler's 75708 zip code, where the median home value is $170,111. Renters pay an average of $1,392 per month. It's the state's 144th-cheapest rental market.
The median property tax for households within the zip code is $1,378, which makes it the 42nd-cheapest property tax rate in Texas.
10. Victoria
The final spot on our list of the most affordable places to live in Texas goes to the 77901 zip code in Victoria.
🔎 Key data about Victoria
| Data point | Value | Rank (out of 804 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 89.5 | No. 10 | N/A |
| Median home value | $149,672[64] | No. 54 | -$186,260.57 |
| Home affordability ratio | 2.8 | No. 64 | -1.4 |
| Home value five-year change | 42.8%[65] | No. 295 | -3.3% |
| Home value one-year forecast | -2.1%[66] | No. 94 | -1.0% |
| Rental costs | $996[67] | No. 15 | -$700 |
| Rent affordability ratio | 1.88% | No. 188 | -0.2% |
| Median household income | $52,823[68] | No. 614 | -$26,806 |
| Property taxes | $2,274[69] | No. 227 | -$2,141 |
| Energy costs | $0.14 kWh[70] | No. 142 | $0.00 |
The 54th-most affordable market in Texas is Victoria's 77901 zip code. The median home value is $149,672. Rent in the market costs $996 per month on average, making it the 15th-most affordable rental market in Texas.
The median property tax for households in Victoria is $2,274, which is the 227th-cheapest property tax rate in the state.
Victoria ranks No. 142 among Texas markets by energy costs, with households paying $0.14 per kWh of electricity.
How we ranked the most affordable places in Texas
We evaluated 804 zip codes in Texas with a population over 10,000 on nine metrics. We then assigned each market an Affordability Score based on its weighted and combined rankings.
Often the zip code we identify will represent an entire city or portion of a city.
Occasionally the zip code we identify will encompass an area that includes one or more small towns. In these cases, the data we’ve gathered applies to the entire zip code, not just the single town we’re using to help identify the zip code's location.
If you’re looking to move to one of these affordable places, we recommend doing additional research to make sure the costs in the area — and the quality of life it offers — meet your specific needs.
Methodology: What is an Affordability Score?
Our proprietary Affordability Score is a score on a scale of 0 (worst in state) to 100 (best in state) that estimates the affordability of a particular zip code. It takes into account these key data points for each zip code.
- Median home value: The median home value for each zip code comes from the Zillow Home Value Index. The lower the median home value relative to the median value in Texas, the higher our score on this component. We assign a weight of 23.8% to median home value.
- Home affordability ratio. The home affordability ratio is the typical median home value divided by the median household income in the zip code, which reveals the number of years of household income needed to afford a home in that zip code. A lower ratio is better because it means more households can afford a home. The data comes from the Zillow Observed Rent Index and the U.S. Census American Community Survey. We assign a weight of 23.8% to the home affordability ratio.
- Home value five-year change: The home value five-year change is the amount that the median home value in the zip code has risen or fallen during the last five years. Our data comes from the Zillow Home Value Index. We assign a weight of 4.8% to the home value five-year change.
- Home value one-year forecast: The home value one-year forecast comes from Zillow Forecast data. It projects how much home values in the zip code are forecasted to change in the next year. We assign a weight of 4.8% to the home value one-year forecast.
- Rental costs. The rental costs are the observed rents in the zip code, sourced from the Zillow Observed Rent Index. The index includes "listed rents that fall into the 40th to 60th percentile range for all homes and apartments in a given region." We assign a weight of 11.9% to rental costs.
- Median household income: The inflation-adjusted median household income figures for the zip code comes from the U.S. Census American Community Survey. We assign a weight of 4.8% to median household income.
- Rent affordability ratio. The rent affordability ratio is the ratio of rental costs divided by median household income, which provides the percentage of household income needed to pay a typical month’s rent in the zip code. The data comes from the Zillow Observed Rent Index and the U.S. Census American Community Survey. We assign a weight of 11.9% to the rent affordability ratio.
- Property taxes: The property tax figures are the median real estate taxes paid in the zip code, sourced from the U.S. Census American Community Survey. The lower the property tax rate relative to the Texas average, the higher our score on this component. We assign a weight of 7.1% to property taxes.
- Energy costs: The energy costs are the costs of a kilowatt hour (kWh) of residential electricity in the zip code, sourced from the U.S. Department of Energy. The lower the cost of electricity relative to the Texas average, the higher our score on this component. We assign a weight of 7.1% to energy costs.
