Palestine, TX

Very Low · 64

Texas · Population 18,888 · Updated March 2026

$1,032
Median Rent / Month
$46,228
Median Income
$153,400
Median Home Value
$1,032
Owner Costs / Month

Affordability

How far your income goes in Palestine

26.8%
Rent-to-Income Ratio
Moderate
Rent takes 25-35% of median income — moderate affordability.

Tax Burden in Texas

State-level tax rates that affect your costs

0%
Income Tax (Top Rate)
6.25%
Sales Tax
1.6%
Property Tax Rate

Estimated Annual Costs

$12,384
Annual Rent
$0
State Income Tax
$2,454
Property Tax (est.)

Cost of Living Overview

Palestine is significantly cheaper than the national average, making it an attractive option for budget-conscious individuals and families. With a cost index of 64 (where 100 equals the national median), Palestine residents can expect to pay median rent of $1,032/month while earning a median household income of $46,228/year.

The median home value in Palestine, TX is $153,400, with typical monthly owner costs around $1,032 including mortgage, insurance, and taxes. With a rent-to-income ratio of 26.8%, Palestine falls within the generally affordable range, though it's approaching the 30% burden threshold.

Texas has no state income tax, which can represent significant savings compared to high-tax states. Combined with a 6.25% sales tax rate and 1.6% effective property tax rate, the overall tax environment helps keep costs manageable in Palestine.

Frequently Asked Questions

Common questions about living costs in Palestine

What is the cost of living in Palestine, TX?
The cost of living index in Palestine, TX is 64 (US average = 100). Median monthly rent is $1,032, median household income is $46,228/year, and the median home value is $153,400.
Is Palestine, TX affordable?
Yes, Palestine is more affordable than the national average with a cost index of 64. The rent-to-income ratio is 26.8%—below the 30%% threshold considered affordable by HUD.
What is the average rent in Palestine, TX?
The median gross rent in Palestine, TX is $1,032 per month according to the US Census Bureau ACS 2023 data. Annual rent costs approximately $12,384.
What is the median household income in Palestine?
The median household income in Palestine, TX is $46,228 per year. This compares to the national median of approximately $80,000.
What are the taxes like in Texas?
Texas has a top income tax rate of 0%, a sales tax of 6.25%, and an effective property tax rate of 1.6%. Notably, there is no state income tax.