What is the cost of living in Northeast Texas?
Reviewed August 2026 by Shannon Miles Group
The cost of living in Northeast Texas is significantly below the national average. Housing costs are particularly affordable, especially for properties with acreage. No state income tax adds to the financial appeal.
Understanding the cost of living.
One of the biggest draws of Northeast Texas is its affordability. Here is how the cost of living breaks down.
Cost categories
Housing
The biggest advantage. Homes in Paris, Sherman, Bonham, and surrounding communities are dramatically more affordable than in DFW or other major metros. Acreage properties offer exceptional value compared to urban areas. Prices range from the $100s for fixer-uppers to the $800s for premium acreage with custom homes.
Utilities
Utility costs in Northeast Texas are generally in line with or slightly below the national average. Electric rates from local co-ops are competitive. Propane users pay more for heating than those with natural gas.
Transportation
Gas prices tend to be on par with the Texas average. Commuting distances can be longer in rural areas, so fuel costs may be higher for those who drive frequently. Vehicle registration and insurance rates are moderate.
Groceries and healthcare
Grocery costs are generally in line with national averages. Healthcare costs are moderate, with good access to hospitals and clinics in Paris, Sherman, and other regional centers.
No state income tax
Texas has no state income tax, which means more of your paycheck stays in your pocket. For retirees, this is especially beneficial, as retirement income like Social Security and pension income are not taxed at the state level.
Affordability in our area.
Paris, Sherman, Bonham, and surrounding communities offer homes from the $100s to the $800s, with acreage properties offering exceptional value compared to urban areas. A home that would cost $600,000 in Frisco might be $300,000 in Paris with twice the land.
This affordability gap is the primary reason people are relocating to Northeast Texas. It allows buyers to achieve lifestyle goals like acreage, a shop building, or a historic home that would be out of reach in a more expensive market.
Budgeting for your move.
- Housing is the biggest savings. You will likely pay significantly less for a home in Northeast Texas than in your current area, especially if you are moving from a major metro.
- Property taxes matter. Texas has no state income tax, but property taxes are higher. Factor them into your monthly housing cost.
- Commute costs. If you work in DFW, your commute will be longer. Factor fuel and vehicle maintenance into your budget.
- Rural utility costs. Well maintenance, propane, and septic system care add costs that urban residents may not have.
More answers you might find useful.
Want to know what your money can buy?
Call us or stop by the office at 2322 Lamar Ave. in Paris. We can show you what homes are available in your price range.