Cost of Living in Palacios, TX

Population 4,394 · Texas · Data vintage 2023

62
Cost Index
(100 = US avg)
Page updated: · Data vintage: 2023 ACS 5-Year
Sources: Census ACS·BLS·NOAA·EPA·Zillow · Methodology

Under 25,000 residents gives Palacios a small-town character that shows up in every data point below — from the commute patterns to the rental inventory. A typical home runs $153,000. An unemployment rate of 0.0% points to a labor market well on the tight side of the national distribution.

Located 70 miles southwest of Sugar Land, Palacios is far enough out that local conditions diverge meaningfully from the big-metro baseline. Median home values run roughly 62% lower than Sugar Land's $407,000.

Cost Overview

Housing 50
Rent 79

Scale: 100 = US national average. Green < 90, Red > 110.

About the Cost of Living in Palacios

The median home value in Palacios is $153,000 — 50% below the national median of $305,000. Median rent runs $1,042/month, 21% lower than the national median of $1,314/month. The median household income of $60,613/year is 19% lower than the US median of $74,580. The local unemployment rate is 0.0%, below the national average of 4.8%. Texas charges no state income tax, a meaningful advantage for take-home pay. The climate averages highs of 80.1°F and lows of 63.5°F. Overall, Palacios has a cost of living index of 62 versus the US average of 100, meaning it is 38% less expensive.

🏠 Housing

Median Home Value
$153,000
50% below avg
Zillow Home Value
$242,511
Zillow ZHVI
Median Rent
$1,042/mo
21% below avg
Price-to-Rent Ratio
12.2x
Favors buying
Property Tax Rate
1.7%
Effective rate

HUD Fair Market Rents by Bedroom

Studio
$766
1 BR
$811
2 BR
$981
3 BR
$1,307
4 BR
$1,509
Owner-occupied 78.3%
Renter-occupied 21.6%

💰 Estimated Monthly Budget

Rent median rent
$1,042
Groceries national estimate
$400
Utilities local estimate
$88
Transportation local gas prices
$126
Estimated Total $1,656/mo

Estimates based on median data and national averages. Actual costs vary.

🛒 Food & Groceries

National BLS average prices (2023). Local prices may vary.

🥚
Eggs (dozen)
$0.548
🍞
White Bread (lb)
$1.912
🥩
Ground Beef (lb)
$5.61

🚗 Transportation

Avg Commute
21.5 min
20% below avg
Gas Price
$3.145/gal
0% below avg
0

Commute Mode

Drove alone
84.5%
Carpooled
6.3%
Public transit
2.6%
Bicycle
6.6%

Utilities

Electricity
$0.176/kWh
0% below avg

📋 Taxes

State Income Tax (flat) None
Total Sales Tax 8.2%
State rate 6.3%
Avg local rate 1.9%
Property Tax 1.7%

💼 Income & Employment

Median Household Income
$60,613
19% below avg
Per Capita Income
$30,705
Unemployment Rate
0.0%
100% below avg
Poverty Rate
16.0%
Labor Force Participation
61.0%

🎓 Education

Bachelor's degree+ 12.8%
Graduate degree 9.3%

👥 Demographics

Median Age 40.8
Male median age 40
Female median age 59

🌤 Climate

NOAA 1991–2020 Climate Normals

Avg High
80.1°F
Avg Low
63.5°F
Annual Precip
43.1"
40° 55° 70° 85° 100° JFMAMJJASOND High Low Precip
Month JanFebMarAprMayJunJulAugSepOctNovDec
High °F 656873808590929390847468
Low °F 465057637177797973645548
Precip" 3.251.892.712.673.864.553.673.915.884.333.392.98

Frequently Asked Questions

What is the cost of living in Palacios, TX?

Palacios has a cost index of 62 (100 = national average). It is 38% below the national average.

What is average rent in Palacios, TX?

The median gross rent in Palacios is $1,042 per month based on 2023 Census data.

What is the average home price in Palacios?

The median home value in Palacios is $153,000 according to Zillow and Census data.

What is the median income in Palacios?

The median household income in Palacios is $60,613 per year (2023 ACS 5-year estimates).

What is the sales tax in Palacios, TX?

The combined state and local sales tax rate in Palacios is 8.2%. Texas has no state income tax.

Is Palacios, TX affordable?

Yes, Palacios is generally considered affordable, with a cost of living index of 62 — about 38% below the US national average of 100.

What is the weather like in Palacios?

Palacios has average high temperatures of 80.1°F and average lows of 63.5°F. Annual precipitation is 43.1". Data from NOAA 1991–2020 Climate Normals.

Palacios at a Glance

Population
4,394
Median Income
$60,613
Home Value
$153,000
Median Rent
$1,042/mo
Unemployment
0.0%
Avg High Temp
80.1°F
Sales Tax
8.2%
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