Cost of living in Katy, TX
Katy is expensive by Texas standards. Median rent is $1,602 a month, 14% higher than the Texas median of $1,403, and the median home is worth $401,700, 42% higher than the Texas median of $283,800.
Cost of living31 of 100. Higher means more affordable.
Overall grade for Katy: B-
- Median rent
- $1,602Texas $1,403
- 2-bedroom fair rent
- $1,497HUD FY2027
- Median home value
- $401,700Texas $283,800
- Monthly cost to buy
- $2,799Loan and property tax
- Property tax
- $7,207Median per year
- Income to rent
- $64,000At 30% of pay
Is Katy expensive?
Prices only tell half the story. The typical household here earns $114,912, so the median home costs 3.5 times a year of income, against 3.6 times across Texas and 4.1 times across the US. That is close to the Texas norm.
Our cost of living grade for Katy is D+ (31 of 100), comparing it with US cities of 10,000 to 50,000 people. A higher grade means more affordable.
| Measure | Here | Texas | US |
|---|---|---|---|
| Median rent14% higher than Texas | $1,602 | $1,403 | $1,413 |
| Median home value42% higher than Texas | $401,700 | $283,800 | $332,700 |
| Home value to income3% lower than Texas | 3.5x | 3.6x | 4.1x |
| Median household income46% higher than Texas | $114,912 | $78,476 | $80,734 |
| Renters paying 30%+ of income on rent12 points higher than Texas | 64% | 52% | 51% |
| Median property tax per year70% higher than Texas | $7,207 | $4,232 | $3,119 |
Rent in Katy
HUD's fair market rents for Houston-The Woodlands-Sugar Land, TX HUD Metro FMR Area run from $1,233 for a studio to $2,502 for 4 bedrooms. A two-bedroom is $1,497 a month, which takes an income of about $60,000 a year to stay at 30% of pay. HUD figures include utilities and describe a typical, modest unit.
64% of renters in Katy already spend 30% or more of their income on rent, against 52% across Texas.
Income you need to rent
| Unit | Rent | Yearly income at 30% |
|---|---|---|
| Studio | $1,233 | $49,000 |
| 1 bedroom | $1,261 | $50,000 |
| 2 bedrooms | $1,497 | $60,000 |
| 3 bedrooms | $2,017 | $81,000 |
| 4 bedrooms | $2,502 | $100,000 |
Buying a home in Katy
Buying the median $401,700 home with 20% down ($80,340) and a 30-year loan at 7.28% costs about $2,199 a month for the loan plus $601 a month in property tax, $2,799 in all. Homeowners insurance, HOA dues and upkeep come on top.
That is $1,197 a month more than the median rent, so renting is cheaper month to month. Buying pays off mainly if you stay long enough for the home to build equity.
Taxes
Texas has no state income tax, which helps take-home pay. The trade-off is high property tax, set by the county, city, school district and other local bodies.
The median homeowner in Katy pays $7,207 a year in property tax, 70% higher than the Texas median of $4,232 and 131% higher than the US median. Sales tax in most of Texas tops out at 8.25%.
Monthly cost to buy a median home
- Mortgage payment
- $2,199
- Property tax
- $601
- Median rent, for comparison
- $1,602
Based on a $401,700 home in Katy, 20% down and a 30-year loan at 7.28% (Freddie Mac average, week of 2026-10-01). Property tax is the median paid locally, or the county median where the local figure is not published. Insurance and fees are not included.
Katy cost of living compared with nearby cities
Census medians. Cost grade compares each place with US places of its own size.
| Place | Distance | Median rent | Median home | Household income | Cost grade |
|---|---|---|---|---|---|
| Katy | $1,602 | $401,700 | $114,912 | D+ | |
| Cinco Ranch | 7 mi | $1,986 | $475,600 | $161,972 | B |
| Brookshire | 7 mi | $1,264 | $159,300 | $65,934 | B |
| Fulshear | 8 mi | $1,952 | $572,700 | $187,035 | B- |
| Mission Bend | 12 mi | $1,747 | $233,800 | $67,282 | D+ |
| Pecan Grove | 13 mi | $1,507 | $383,500 | $131,937 | B- |
What these numbers leave out
We only show costs we can source for Katy itself: rent, home prices, property tax and incomes from the Census Bureau, fair market rents from HUD, and a mortgage payment at the current Freddie Mac average rate. Groceries, utilities, car insurance and health care are not included, because no public source publishes them city by city in Texas.
Cost of living in Katy: common questions
Is Katy, TX expensive to live in?
Katy is expensive by Texas standards. Median rent is $1,602 a month, 14% higher than the Texas median of $1,403, and the median home is worth $401,700, 42% higher than the Texas median of $283,800. Prices only tell half the story. The typical household here earns $114,912, so the median home costs 3.5 times a year of income, against 3.6 times across Texas and 4.1 times across the US. That is close to the Texas norm.
How much do you need to earn to live in Katy?
To rent a median home at $1,602 a month and keep rent at 30% of income, you need about $64,000 a year. To buy the median home, the monthly cost is about $2,799, which takes around $112,000 a year by the same rule.
What is the average rent in Katy?
The median rent across all units is $1,602 a month (Census). HUD's fair market rent is $1,233 for a studio, $1,261 for 1 bedroom, $1,497 for 2 bedrooms, $2,017 for 3 bedrooms, $2,502 for 4 bedrooms.
How much is property tax in Katy?
The median homeowner in Katy pays $7,207 a year in property tax, 70% higher than the Texas median of $4,232 and 131% higher than the US median. Sales tax in most of Texas tops out at 8.25%.
Sources: US Census Bureau 2020-2024 ACS 5-year, HUD Fair Market Rents FY2027, Freddie Mac PMMS (week of 2026-10-01). Updated 2026-10-04.