Cost of Living in Palestine, TX

Population 18,888 · 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

Household incomes in Palestine run well below national norms — a median of $46,228 versus the $74,580 US figure. Housing costs partially offset that gap (typical home values around $153,000). At 6.7%, the local unemployment rate runs well above the US figure, pointing to structural rather than cyclical labor-market issues.

Palestine is about 45 miles southwest of Tyler, the nearest large metro — close enough that regional housing and labor patterns are shaped largely by the larger market. Median home values run roughly 29% lower than Tyler's $216,000.

Cost Overview

Housing 50
Rent 79

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

About the Cost of Living in Palestine

The median home value in Palestine is $153,400 — 50% below the national median of $305,000. Median rent runs $1,032/month, 21% lower than the national median of $1,314/month. The median household income of $46,228/year is 38% lower than the US median of $74,580. The local unemployment rate is 6.7%, above the national average of 4.8%. Texas charges no state income tax, a meaningful advantage for take-home pay. The climate averages highs of 77.3°F and lows of 53.9°F. Overall, Palestine has a cost of living index of 62 versus the US average of 100, meaning it is 38% less expensive.

🏠 Housing

Median Home Value
$153,400
50% below avg
Zillow Home Value
$186,984
Zillow ZHVI
Median Rent
$1,032/mo
21% below avg
Price-to-Rent Ratio
12.4x
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 54.7%
Renter-occupied 45.3%

💰 Estimated Monthly Budget

Rent median rent
$1,032
Groceries national estimate
$400
Utilities local estimate
$88
Transportation local gas prices
$126
Estimated Total $1,646/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
23.8 min
12% below avg
Gas Price
$3.145/gal
0% below avg
Work From Home
5.4%

Commute Mode

Drove alone
80.5%
Carpooled
9.2%
Public transit
2.2%
Walked
0.0%
Bicycle
0.2%
Work from home
5.4%

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
$46,228
38% below avg
Per Capita Income
$26,983
Unemployment Rate
6.7%
40% above avg
Poverty Rate
17.5%
Labor Force Participation
63.5%

🎓 Education

Bachelor's degree+ 11.5%
Graduate degree 4.8%

👥 Demographics

Median Age 35.4
Male median age 34.8
Female median age 36.6

🌤 Climate

NOAA 1991–2020 Climate Normals

Avg High
77.3°F
Avg Low
53.9°F
Annual Precip
46.8"
Annual Snowfall
0.1"
30° 48° 65° 83° 100° JFMAMJJASOND High Low Precip
Month JanFebMarAprMayJunJulAugSepOctNovDec
High °F 596370778490949589806860
Low °F 353945536269727165544437
Precip" 4.053.874.114.134.324.502.573.663.314.233.854.20
Snow" 0.00.10.00.00.00.00.00.00.00.00.00.0

Frequently Asked Questions

What is the cost of living in Palestine, TX?

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

What is average rent in Palestine, TX?

The median gross rent in Palestine is $1,032 per month based on 2023 Census data.

What is the average home price in Palestine?

The median home value in Palestine is $153,400 according to Zillow and Census data.

What is the median income in Palestine?

The median household income in Palestine is $46,228 per year (2023 ACS 5-year estimates).

What is the sales tax in Palestine, TX?

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

Is Palestine, TX affordable?

Yes, Palestine 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 Palestine?

Palestine has average high temperatures of 77.3°F and average lows of 53.9°F. Annual precipitation is 46.8". Average annual snowfall is 0.1". Data from NOAA 1991–2020 Climate Normals.

Palestine at a Glance

Population
18,888
Median Income
$46,228
Home Value
$153,400
Median Rent
$1,032/mo
Unemployment
6.7%
Avg High Temp
77.3°F
Sales Tax
8.2%
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