Town in Matagorda County

Living in Palacios, TX

B

260th of 745Texas towns of 1,000 to 10,000 people
Overall score 65 of 100

We give Palacios a B. It ranks 260th of 745 Texas towns of 1,000 to 10,000 people. It does best on getting around and schools, and trails on internet access and education levels. It is a strong pick for young professionals.

  • Good for young professionals
  • Internet access scores low (9 of 100)
  • Coastal flooding risk is very high
Map of Texas showing where Palacios isHoustonSan AntonioDallasAustinFort WorthPalacios
Where Palacios is in Texas.
Population
4,370-0.5% since 2020
Median rent
$78544% lower than Texas
Median home value
$153,80046% lower than Texas
Household income
$52,620Median
Average commute
24 minOne way
Violent crime
275Per 100k, 2025

What it's like to live in Palacios

Palacios is a town in Matagorda County. 4,370 people lived here in 2025, down 0.5% from 2020. It is spread out, with an older housing stock (the median home dates to 1964).

Places locals use include City Park, Palacios Library and Bay Palacios Texas.

The median age is 46.2, 23% of households have children, 84% of homes are owned by the people living in them and the typical household earns $52,620 a year (33% lower than the Texas median).

Pros of living in Palacios

  • Lower rent. Median rent is $785, 44% lower than the Texas median.

Cons of living in Palacios

  • Natural hazard risk. FEMA rates the risk of coastal flooding, hurricanes and heat waves as very high here.
  • Spotty home internet. Only 78% of homes have a broadband plan.

Who Palacios suits

  • FamiliesA reasonable fit: violent crime is 29% lower than the Texas rate. Compared with similar Texas places, it beats 62% for families.
  • Young professionalsA reasonable fit: household income is 33% lower than the Texas median, with 22 restaurants and 1 cafe in town. Compared with similar Texas places, it beats 82% for young professionals.
  • RetireesNot the best fit: 26% of working-age adults are uninsured and violent crime is 29% lower than the Texas rate. Compared with similar Texas places, it beats 38% for retirees.
  • Remote workersNot the best fit: 78% of homes have broadband and the median rent of $785 is 44% lower than the Texas median. Compared with similar Texas places, it beats 19% for remote workers.
  • People on a budgetNot the best fit: the median rent of $785 is 44% lower than the Texas median. Compared with similar Texas places, it beats 36% for people on a budget.

Palacios report card

Ten grades, one for each part of daily life we measure. Most compare Palacios with other US towns of 1,000 to 10,000 people. Schools, safety and errands compare it with other Texas towns of 1,000 to 10,000 people.

  • Cost of living: grade C

    Median rent $785, homes cost 2.9x income.

    42 of 100 vs US towns

  • Jobs and income: grade C

    Median household income $52,620, 1.3% unemployed.

    40 of 100 vs US towns

  • Schools: grade B+

    1 rated campuses, 100% rated A or B.

    77 of 100 vs TX towns

  • Safety: grade D+

    275 violent crimes per 100k, 1,054 property crimes per 100k.

    27 of 100 vs TX towns

  • Errands and things to do: grade B+

    1 grocery store, 22 restaurants, 4 parks mapped in town.

    76 of 100 vs TX towns

  • Getting around: grade A-

    Average commute 24 min, 0% work from home.

    81 of 100 vs US towns

  • Education levels: grade D

    23% have a bachelor’s degree.

    21 of 100 vs US towns

  • Health: grade D+

    26% of adults uninsured.

    27 of 100 vs US towns

  • Home ownership: grade C+

    84% of homes owner-occupied.

    52 of 100 vs US towns

  • Internet access: grade D-

    78% of homes have broadband.

    9 of 100 vs US towns

Where Palacios stands out compared with Texas

Better than Texas

  • Homes owned by the people living in them: 84%21 points higher than Texas (63%)
  • Median rent: $78544% lower than Texas ($1,403)
  • Home value to income: 2.9x19% lower than Texas (3.6x)

Worse than Texas

  • Renters paying 30%+ of income on rent: 90%38 points higher than Texas (52%)
  • Median household income: $52,62033% lower than Texas ($78,476)
  • Homes with broadband internet: 78%13 points lower than Texas (91%)

Cost of living in Palacios

Rent is the cost most newcomers feel first. The median rent in Palacios is $785 a month, 44% lower than the Texas median of $1,403. To keep that rent at 30% of income, a household needs to earn about $31,000 a year. Right now 90% of renters here pay more than 30% of their income on rent.

HUD sets fair market rents for this area at $1,027 for a one-bedroom, $1,226 for a two-bedroom and $1,569 for a three-bedroom (fiscal year 2027). These figures include utilities and describe a modest unit, so newer apartments often ask for more.

The median home is worth $153,800, 46% lower than the Texas median. With 20% down and a 30-year loan at 7.28%, the monthly payment comes to about $842 before tax, or $1,066 with property tax. That is $281 a month more than the median rent, so renting is the cheaper monthly choice unless you plan to stay for years.

Texas has no state income tax, but it leans on property taxes instead, though they are lighter here than in much of the state. The median homeowner in Palacios pays $2,695 a year, 36% lower than the Texas median of $4,232. Budget for it, along with homeowners insurance, which our numbers do not include.

Typical rent by apartment size

Fair market rent by bedroom count in PalaciosStudio$1,0211 bedroom$1,0272 bedrooms$1,2263 bedrooms$1,5694 bedrooms$1,968
HUD fair market rent for FY2027, Matagorda County, TX. This is what a typical, modest unit rents for, including utilities.
MeasureHereTexasUS
Median rent44% lower than Texas$785$1,403$1,413
Median home value46% lower than Texas$153,800$283,800$332,700
Home value to income19% lower than Texas2.9x3.6x4.1x
Renters paying 30%+ of income on rent38 points higher than Texas90%52%51%
Median property tax per year36% lower than Texas$2,695$4,232$3,119
Homes owned by the people living in them21 points higher than Texas84%63%65%
Median year homes were builtAbout the same as Texas196419921980

Monthly cost to buy a median home

$1,066
Mortgage payment
$842
Property tax
$225
Median rent, for comparison
$785

Based on a $153,800 home in Palacios, 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.

Is Palacios safe?

In 2025, Palacios Police Department reported 12 violent crimes and 46 property crimes. That works out to 275 violent crimes per 100,000 people, 29% lower than the Texas rate of 387, and 1,054 property crimes per 100,000, 49% lower than the state rate.

Violent crime is down about 57% since 2021, based on the yearly rates below.

Crime rates describe the whole area a police department covers. Some streets are much quieter than the average and some are busier, so look at the neighborhood grades and visit at different times of day.

Violent crimes per 100,000 people in Palacios by yearTexas27520212022202320242025

Violent crimes per 100,000 people by year. The dashed line is the Texas rate for 2025.

Violent crime
275
per 100k, Texas 387
Property crime
1,054
per 100k, Texas 2,086
Property crimes per 100,000 people in Palacios by yearTexas1,05420212022202320242025

Property crimes per 100,000 people by year.

Source: FBI Crime Data Explorer, Palacios Police Department, 2025. Rates count reported crimes only and cover the area this police department serves.

Schools in Palacios

Palacios has 1 public school campuses with a 2025 state rating inside the city, and 100% of them earn an A or B. Most students here are served by Palacios ISD.

Texas districts usually assign students by attendance zone rather than the closest campus, so check the zone for a specific address with the district before you sign a lease or buy.

Schools grade
77
of 100 vs Texas towns
Average rating
86
Texas median 81

Ratings are the 2025 Texas Education Agency A to F accountability ratings. Always check which school serves a specific address with the district.

Top-rated schools

  • BPalacios Junior Senior High SchoolOther, Palacios ISD86 of 100

Daily life in Palacios

Everyday places mapped inside Palacios, from Overture Maps. Well-known spots include City Park, Palacios Library, City of Palacios Main Street Park.

The average one-way commute is 24 minutes, 11% shorter than the Texas average. 0% of workers work from home. 7.0% walk, bike or take transit to work.

Downtown Bay City is about 24 miles away in a straight line. Many people who live in Palacios work elsewhere in the metro, so test the drive at rush hour before you commit.

The median household income is $52,620, income per person is $27,481, unemployment is 1.3% and 23% of adults hold a bachelor's degree.

Grocery stores
1
Pharmacies
2
Restaurants
22
Cafes
1
Bars
0
Parks
4
Gyms
1
Hospitals and urgent care
0
Childcare
0
Libraries
1

Jobs, income and education

MeasureHereTexasUS
Median household income33% lower than Texas$52,620$78,476$80,734
Income per person33% lower than Texas$27,481$40,752$44,673
Unemployment rate4 points lower than Texas1.3%5.3%5.2%
People below the poverty line5 points higher than Texas19%14%12%
Adults with a bachelor's degree or higher11 points lower than Texas23%34%36%
Adults with a high school diploma or higher26 points lower than Texas60%86%90%
Adults 18 to 64 without health insurance6 points higher than Texas26%20%11%
Homes with broadband internet13 points lower than Texas78%91%91%

Getting to work

MeasureHereTexasUS
Average commute11% lower than Texas24 min27 min26 min
Workers who work from home14 points lower than Texas0%14%15%
Workers who work from home0%
Workers who take transit7.0%
Workers who walk0%
Workers who bike0%

Who lives in Palacios

Under 1817%
18 to 3416%
35 to 6444%
65 and over23%

Median age 46.2 years. 23% of households have children.

Race and ethnicity
White30%
Hispanic or Latino65%
Black1.0%
Asian1.5%
Other or more than one race2.9%

Shown for information only. It is never part of any grade.

Weather in Palacios

Palacios has a hot Texas climate. July highs average 92°F and January lows about 46°F. There are about 82 days a year at 90°F or above, and about 43 inches of rain a year.

Average monthly high and low temperatures in Palacios40°60°80°100°65J68F73M80A85M90J92J93A90S84O74N68DRain

Average daily high and low by month, °F, with rain below. NOAA 1991 to 2020 normals from Palacios Muni Ap, 2 mi away. Orange months average 90°F or more.

Natural hazard risk

FEMA's National Risk Index says river flooding risk is moderate, coastal flooding risk is very high, hurricane risk is very high, tornado risk is moderate and hail risk is moderate. Even in lower-risk areas, check the FEMA flood map for the exact address before you buy.

  • River floodingModerate
  • Coastal floodingVery high
  • HurricanesVery high
  • TornadoesModerate
  • HailModerate
  • Heat wavesVery high
  • WildfiresVery high
  • Winter stormsLow
  • Strong windModerate

Source: FEMA National Risk Index, December 2025, Census tract level averaged for the city. Check the FEMA flood map for any address before you buy.

Places near Palacios

Nearby, Bay City gets a D-, Port Lavaca gets a B- and Ganado gets a D. Each is graded against Texas places of its own size, so a small town and a big city can both earn an A.

  1. D-Bay CitySmall city, 17,730 people24 mi
  2. B-Port LavacaSmall city, 11,358 people26 mi
  3. DGanadoTown, 1,534 people29 mi
  4. D+Van VleckTown, 1,763 people30 mi
  5. DEdnaTown, 6,027 people32 mi
  6. D+El CampoSmall city, 12,202 people34 mi

Living in Palacios: common questions

Is Palacios, TX a good place to live?

We give Palacios a B. It ranks 260th of 745 Texas towns of 1,000 to 10,000 people. It does best on getting around and schools, and trails on internet access and education levels. It is a strong pick for young professionals.

How much does it cost to live in Palacios?

Median rent in Palacios is $785 a month, 44% lower than the Texas median. The median home is worth $153,800, 46% lower than the Texas median. A median home costs 2.9x the median household income, compared with 3.6x across Texas. With 20% down at a 7.28% rate, the monthly payment on a median home is about $1,066, including property tax.

Is Palacios safe?

In 2025, Palacios Police Department reported 275 violent crimes per 100,000 people, 29% lower than the Texas rate. Property crime was 1,054 per 100,000, 49% lower than the Texas rate.

Are the schools good in Palacios?

We found 1 rated public school campuses inside Palacios. 100% are rated A or B by the Texas Education Agency. Its schools score is 77 of 100 compared with other Texas towns of 1,000 to 10,000 people.

Does Palacios flood?

FEMA rates river flooding risk in Palacios as moderate, and coastal flooding as very high. Hazards rated high or very high here: coastal flooding, hurricanes, heat waves and wildfires. Always check the flood map for a specific address before you buy.

What is the weather like in Palacios?

Summers in Palacios peak at about 92°F in July, and January nights fall to about 46°F. Expect around 82 days a year at 90°F or hotter, and 43 inches of rain.

How long is the commute in Palacios?

The average one-way commute is 24 min, 11% lower than the Texas average. About 0% of workers work from home. It is about 24 miles from downtown Bay City.

Sources: US Census Bureau 2020-2024 ACS 5-year and 2025 population estimates, CDC PLACES 2025, Texas Education Agency 2025 ratings, FBI Crime Data Explorer, FEMA National Risk Index, NOAA climate normals, HUD fair market rents, Overture Maps. Updated 2026-10-04. How we grade.