Cost of Living in Palacios, TX

With a cost of living index of 77, Palacios, TX is a very affordable place to live. Living here is 23% cheaper than the national average and 10% below the Texas state average of 88. Palacios is a small community of 4,394 residents.

Housing costs are the biggest factor in Palacios's cost of living. The median monthly rent is $1,042 (21% below the US median of $1,319), and the median home value sits at $153,000 (50% below the national median of $304,900). At current prices, the median home costs roughly 2.5x the median household income — well within traditional affordability guidelines.

The median household income in Palacios is $60,613, which is 19% lower than the national median of $75,149. Residents spend roughly 21% of household income on rent. This is a comfortable ratio, well below the 30% threshold that financial experts recommend as a maximum. Lower incomes here are balanced by the significantly lower cost of living, stretching each dollar further.

Climate is another factor for anyone considering a move to Palacios. The area sees an average annual temperature of 71.8°F, with summers averaging 85°F and winters around 58°F. Annual rainfall totals 43.1 inches spread over roughly 93 days. The mild climate is a draw for many residents and keeps utility costs moderate year-round.

Data sources: US Census Bureau (ACS 2023), Zillow Home Values, HUD Fair Market Rents, BEA Regional Price Parities, BLS Average Prices, and NOAA Climate Normals. Updated monthly.