Houston, TX vs Memphis, TN
Simple answer
You'd likely save $196 a month in Memphis.
This is the HUD 2-bedroom fair-market rent for October 2026 through September 2027. It is not your lease.
The largest cost gap in this pair is housing prices. The BEA housing price parity differs by 24.7 points (Houston 104.5, Memphis 79.8).
Texas has no tax on wages. Tennessee has no tax on wages. Combined sales tax differs by 1.4 percentage points, higher in Tennessee. The effective property tax gap is 0.86 percentage points, higher in Texas.
After a move from Texas to Tennessee, those two example households keep the same benefit status labels. A different income can still split Medicaid and marketplace credits.
A $75,000 salary in Houston lines up with about $70,095 in Memphis on the 2024 all-items price parity. Census median gross rent and the commute figures are 2024. Fair Market Rents are fiscal year 2027.
Houston
Houston-Pasadena-The Woodlands, TX
- 2-bedroom Fair Market Rent
- $1,497
- HUD area
- Houston-The Woodlands-Sugar Land, TX HUD Metro FMR Area
- Census median gross rent
- $1,469
- All-items price parity
- 98.6
- Goods price parity
- 100.6
- Utilities price parity
- 95.3
- Mean commute
- 31.1 min
- Median household income
- $81,417
Memphis
Memphis, TN-MS-AR
- 2-bedroom Fair Market Rent
- $1,301
- HUD area
- Memphis, TN-MS-AR HUD Metro FMR Area
- Census median gross rent
- $1,330
- All-items price parity
- 92.2
- Goods price parity
- 96.2
- Utilities price parity
- 74.1
- Mean commute
- 24.4 min
- Median household income
- $68,124
Equivalent salary
The first number keeps the same place in the national price level. The second also runs 2026 federal income tax, employee Social Security and Medicare, and a simplified state income tax. Groceries use the BEA goods price parity, not a grocery receipt.
$70,095
Salary in Memphis that matches the 2024 all-items regional price parity.
$69,274
Gross salary in Memphis whose after-tax pay buys the same basket, using price parities.
$65,180
Scales the salary by the ratio of HUD 2-bedroom Fair Market Rents. Rent is not the whole budget.
Taxes on the two sides of the move
| Tax | Texas | Tennessee |
|---|---|---|
| State income tax on wages | No wage tax | No wage tax |
| Combined sales tax, Jan 1, 2026 | 8.2% | 9.6% |
| Effective property tax, ACS 2024 median / median | 1.31% | 0.45% |
On a $400,000 home, the state median effective rate implies about $5,246 a year in Texas and $1,790 in Tennessee. That illustration is not a local bill. Childcare prices are not in the verified dataset for these metros.
Benefits if you land in Tennessee
Same household, $40,000 a year, scored once in Texas and once in Tennessee. This is an illustration, not your application.
Food stamps (SNAP)
HoustonLikely eligible
MemphisLikely eligible
Medicaid and CHIP
HoustonLikely eligible
MemphisLikely eligible
WIC
HoustonLikely eligible
MemphisLikely eligible
School meals
HoustonLikely eligible
MemphisLikely eligible
LIHEAP
HoustonMaybe
MemphisMaybe
Earned Income Tax Credit
HoustonLikely eligible
MemphisLikely eligible
Child Tax Credit
HoustonLikely eligible
MemphisLikely eligible
Marketplace premium tax credits
HoustonLikely eligible
MemphisLikely eligible
Lifeline phone and internet
HoustonLikely eligible
MemphisLikely eligible
SSI
HoustonUnlikely
MemphisUnlikely
| Program | Houston | Memphis |
|---|---|---|
| Food stamps (SNAP) | Likely eligible | Likely eligible |
| Medicaid and CHIP | Likely eligible | Likely eligible |
| WIC | Likely eligible | Likely eligible |
| School meals | Likely eligible | Likely eligible |
| LIHEAP | Maybe | Maybe |
| Earned Income Tax Credit | Likely eligible | Likely eligible |
| Child Tax Credit | Likely eligible | Likely eligible |
| Marketplace premium tax credits | Likely eligible | Likely eligible |
| Lifeline phone and internet | Likely eligible | Likely eligible |
| SSI | Unlikely | Unlikely |
At $40,000 the status labels match. A single adult around $18,000 is where Medicaid expansion and the marketplace coverage gap usually split.
Related comparisons
From Houston
The eight largest 2-bedroom Fair Market Rent gaps from Houston.
- Houston and San Francisco · rent gap $2,200
- Houston and San Jose · rent gap $1,775
- Houston and Boston · rent gap $1,511
- Houston and New York · rent gap $1,474
- Houston and Los Angeles · rent gap $1,467
- Houston and San Diego · rent gap $1,326
- Houston and Miami · rent gap $1,067
- Houston and Seattle · rent gap $1,052
Nearby metros
How the salary and tax math works · The reverse city order redirects to this address.