6 Most Affordable Cities in Texas for the Middle Class

Roschetzky / iStock.com

Commitment to Our Readers

GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.

20 Years
Helping You Live Richer

Reviewed
by Experts

Trusted by
Millions of Readers

Everything is bigger in Texas, including affordability, as it continues to attract families and professionals seeking a lower cost of living, strong job markets and a high quality of life. However, with rising housing prices in major metros like Austin and Dallas, many middle-class Americans are searching for more budget-friendly alternatives. Whether you’re relocating for work, retirement or a fresh start, finding an affordable city in Texas doesn’t mean compromising on your lifestyle.

GOBankingRates cast out its research nets to find the most affordable cities in Texas for middle-class families, based on factors like housing costs, average income, monthly expenses and overall cost of living. These cities offer the perfect balance of affordability and livability, making them ideal for those looking to stretch their dollars without sacrificing lifestyle.

From Southlake to Murphy, here are the six most affordable cities in Texas for the middle class.

1. Southlake

• Population: 31,044
• Average home value: $1,266,801
• Average monthly expenditures: $2,187
• Median middle-class income: $250,000
• Annual cost of living: $109,956
• Leftover savings: $140,044
• Livability score: 76

Southlake is consistently ranked among the best places to live in Texas thanks to its blend of upscale living, excellent public schools and a strong, close-knit community. Though it may be on the more luxurious side, this city also offers prime real estate, low crime rates and convenient access to the Dallas-Fort Worth metroplex, making it ideal for professionals and retirees alike. 

2. Colleyville

• Population: 25,906
• Average home value: $897,101
• Average monthly expenditures: $2,173
• Median middle-class income: $203,566
• Annual cost of living: $85,356
• Leftover savings: $118,210
• Livability score: 79

Another one of the most desirable suburbs in the Dallas-Fort Worth area, Colleyville offers a perfect blend of luxury living, top-rated schools and family-friendly neighborhoods. Colleyville is ideal for families and professionals seeking a peaceful lifestyle with easy access to urban amenities and spacious homes, and it is often considered one of the best places to live in North Texas.

3. Fulshear

• Population: 26,986
• Average home value: $534,795
• Average monthly expenditures: $2,260
• Median middle-class income: $178,398
• Annual cost of living: $62,460
• Leftover savings: $115,938
• Livability score:  71

Fulshear is one of the fastest-growing and most desirable suburbs near Houston, offering a peaceful, small-town atmosphere with access to big-city conveniences. It has plenty of housing options and is loaded with new home developments. Fulshear is ideal for families, retirees and professionals seeking scenic landscapes, low crime rates and expanding infrastructure, all wrapped up in an affordable cost of living.

4. Prosper

• Population: 34,567
• Average home value: $799,407
• Average monthly expenditures: $2,078
• Median middle-class income: $187,603
• Annual cost of living: $77,754
• Leftover savings: $109,849
• Livability score: 70

As one of the most sought-after and fast-growing suburbs in North Texas, Prosper lives up to the name as it gives you a blend of luxury living, top-rated schools and a community where everyone knows your name. With its abundance of new home developments, spacious neighborhoods and proximity to Frisco and McKinney, Prosper is ideal for you if you are looking for growth potential in your real estate investment, low crime rates and high-quality education.

5. Keller

• Population: 45,598
• Average home value: $641,668
• Average monthly expenditures: $2,173
• Median middle-class income: $172,654
• Annual cost of living: $68,472
• Leftover savings: $104,182
• Livability score: 83

The Dallas-Fort Worth metroplex has no shortage of affluent and prospering neighborhoods, and Keller is definitely one of them. Offering a perfect mix of small-town vibes and big city bustle, it is an ideal place for families, retirees and professionals seeking a high quality of life. You can enjoy access to beautiful parks and walking trails while being just a few minutes from major employment hubs. 

6. Murphy

• Population: 21,001
• Average home value: $577,859
• Average monthly expenditures: $2,075
• Median middle-class income: $165,109
• Annual cost of living: $63,088
• Leftover savings: $102,021
• Livability score: 80

Murphy, Texas, is a hidden gem among the affordable suburbs near Dallas, offering a peaceful, family-friendly community with excellent schools and a strong local economy. It is ideal for families and professionals seeking a high quality of life without the high price tag. With easy access to major highways, parks and shopping centers, Murphy is another one of the best places to live in North Texas.

Methodology: For this study, GOBankingRates analyzed cities in Texas to find the most affordable places to live for middle-class households. Cities in Texas with a total population of at least 20,000 were identified using the US Census American Community Survey, along with the total households and median household income. The Pew Research Center defines the middle class as two-thirds to double the median household income. Using the median household income for each Texas city, the middle class within each city was calculated. The cost of living indices were sourced from Sperlings BestPlaces and using the national average expenditure costs, as sourced from the Bureau of Labor Statistics Consumer Expenditure Survey, the average expenditure costs can be calculated for each city. The average single-family home value was sourced from Zillow Home Value Index. Assuming a 10% down payment, and using the national average 30-year fixed mortgage rate, as sourced from the Federal Reserve Economic Data, the average mortgage cost can be calculated for each city. Using the average mortgage and expenditure cost, the total cost of living for necessities can be calculated. Using the median household income and average cost of living for necessities, the leftover savings for a middle-class household can be estimated. The cities were sorted to show the largest leftover savings first. All data is up to date as of October 29th, 2025.

Share This Article: