A recent WalletHub analysis reveals that the city with the largest rent burden in Texas is Garland, with a median annual gross rent of 25.8% of median annual household income. Laredo has the smallest rent burden at 19.34%. The study compared median annual gross rent with median household income in over 180 cities across the U.S. to determine rent affordability. Austin, Dallas, and Houston were also included in the analysis.
Despite early 2026 trends showing a decline in prices, the Federal Reserve’s Consumer Price Index (CPI) shows that rental costs have increased by more than 50% in the past decade, along with a similar surge in home prices. Meanwhile, wage growth lags behind, pushing more people into the “rent-burdened household” classification.
"In the most affordable cities for renters, the median cost of rent is as low as 15% of the median income, compared to nearly 34% in the most expensive cities," WalletHub analyst Chip Lupo says. "This gives people in the least expensive cities a clear financial advantage; the money they save on rent could go toward their emergency fund or savings for future home ownership."
Top 5 Texas Cities for Rent Affordability:
- Laredo (19.34%)
- Plano (19.68%)
- Amarillo (19.88%)
- Brownsville (21.25%)
- El Paso (21.55%)
Bottom 5 Texas Cities for Rent Affordability:
- Garland (25.80%)
- Houston (25.20%)
- Dallas (25.05%)
- San Antonio (24.42%)
- Grand Prairie (23.95%)
To save money on rent, WalletHub suggests picking a smaller or less fancy apartment, improving budgeting skills, getting a roommate, looking for units with included utilities, shopping around, taking care of your living space, and getting a rent-controlled unit.