To keep the same standard of living as $100,000 in Houston, you'd need about $92,200 in Memphis — a $7,800 saving per year.
Estimated monthly spending for a middle-income household, adjusted by each metro's BEA price level.
The salary you'd need in Memphis to maintain the same purchasing power as each income level in Houston, using the BEA price ratio of 0.922.
| Salary in Houston | Equivalent in Memphis | Difference |
|---|---|---|
| $50,000 | $46,100 | −$3,900 |
| $75,000 | $69,200 | −$5,800 |
| $100,000 | $92,200 | −$7,800 |
| $150,000 | $138,300 | −$11,700 |
| $200,000 | $184,400 | −$15,600 |
Moving from Houston, TX to Memphis, TN means your everyday costs are cheaper by roughly 7.8%. The U.S. Bureau of Economic Analysis measures Houston's overall price level at 100.2 and Memphis's at 92.4, where 100 represents the national average. In practical terms, a household spending $5,112 per month in Houston would spend about $4,687 for the equivalent lifestyle in Memphis — a swing of $425 every month, or $5,100 per year.
Housing is the decisive factor. Estimated monthly housing runs $2,108 in Houston against $1,813 in Memphis. Because rent and mortgage costs vary far more between metros than groceries or utilities, the housing line alone accounts for most of the 7.8% gap.
For salary negotiation or a remote-work relocation, the key number is the equivalent salary. A $100,000 income in Houston has the same purchasing power as $92,200 in Memphis. Looked at the other way, $100,000 in Memphis is worth about $108,400 in Houston terms. Use the Cost of Living Calculator to plug in your own expenses.
Price levels don't include income tax, which can significantly swing your real take-home pay — especially between TX and TN.
Memphis is 7.8% cheaper than Houston overall. Based on the U.S. Bureau of Economic Analysis Regional Price Parities (2023), Houston has a price level of 100.2 versus 92.4 for Memphis, where 100 equals the national average.
To maintain the same purchasing power as a $100,000 salary in Houston, you would need about $92,200 in Memphis — a difference of $7,800 per year.
Estimated monthly housing runs about $2,108 in Houston versus $1,813 in Memphis. Housing is the single biggest driver of the cost-of-living gap between the two metros.
Sources & methodology
Price levels use the U.S. Bureau of Economic Analysis Regional Price Parities for metropolitan areas (2023, the most recent metro-level release). Houston maps to the Houston-The Woodlands-Sugar Land, TX MSA; Memphis maps to the Memphis, TN-MS-AR MSA. Category spending baselines come from the U.S. Bureau of Labor Statistics Consumer Expenditure Survey. Category-level figures are modeled estimates and are illustrative; actual costs vary by household. This is a planning tool, not financial advice.
