Laredo and McAllen, Texas are ranked as America’s top affordable livable cities, requiring homeowners to earn around $72,000 annually.
KATY, Texas — Two Texas cities have claimed the top spots in a new ranking of America’s most affordable livable destinations, with homeowners needing salaries starting around $72,000 to live comfortably in these locations.
Laredo, Texas, topped the list, requiring homeowners to earn $72,015 annually to cover living expenses of $36,008 per year. McAllen, Texas, followed closely in second place, with homeowners needing $72,574 to afford annual living costs of $36,287.
Katy ranked 17th, League City ranked 18th, Pearland ranked 21st, and Sugar Land ranked 31st.
“Texas came out on top for affordable, livable cities for homeowners,” according to the study’s key findings. “The top two cities in the ranking — Laredo and McAllen — are located in the Lone Star State.”
The ranking, compiled by GOBankingRates and released Thursday, analyzed the top 50 cities from U.S. News & World Report’s “250 Best Places to Live in the U.S. in 2025-2026” to determine where Americans can live comfortably without requiring six-figure salaries. The cities were selected based on their values, desirability, strong job markets and high quality of life.
Rounding out the top five were Moore, Oklahoma in third place ($74,694 salary needed), Midland, Michigan in fourth ($74,715 required), and Broken Arrow, Oklahoma in fifth place ($82,378 needed).
The study found that all ranked cities require above-average salaries to live comfortably. With the average U.S. salary around $67,000, residents need to earn over $72,000 to live comfortably in the top-ranked destinations for homeowners.
GOBankingRates analyzed each city’s average rent, home values, mortgage payments, grocery costs, healthcare expenses, utilities and transportation costs, applying the 50/30/20 budget rule to determine salary requirements.