Cost of Living in Palestine, TX

With a cost of living index of 77, Palestine, 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. Palestine is a smaller community of 18,888 residents, where everyday costs can differ substantially from nearby larger cities.

Housing costs are the biggest factor in Palestine's cost of living. The median monthly rent is $1,032 (22% below the US median of $1,319), and the median home value sits at $153,400 (50% below the national median of $304,900). At current prices, the median home costs roughly 3.3x the median household income — a moderately affordable ratio by today's standards.

The median household income in Palestine is $46,228, which is 38% lower than the national median of $75,149. Residents spend roughly 27% of household income on rent. This is near the 30% threshold that financial experts generally consider the upper limit of affordability. 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 Palestine. The area sees an average annual temperature of 65.6°F, with summers averaging 82°F and winters around 49°F. Annual rainfall totals 46.8 inches spread over roughly 103 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.