10 Small Texas Cities Where $2,000 Goes Further Than You'd Think

When looking to stretch your budget, finding the right place to call home can make all the difference to your bottom line. Luckily, some small Texas towns offer relatively cheap housing costs. When combined with relatively low costs on everyday expenses, $2,000 might go further than you thought.

This guide explores some of the top Texas towns offering affordable living, which can help you prepare yourself financially for anything that comes your way.

Editor's note: All average rent and home prices come from Zillow, population data comes from the Census, and the average electric bill from Find Energy, unless otherwise noted.

Population: 146,599
Average rent cost: $1,350
Average home price: $224,115
Average electric bill: $149

McAllen blends small-city convenience with a relaxed pace of life. This vibrant Southern Texas city is near the Mexico border, and is known for its warm climate, strong retail scene, and rich blend of Mexican and American culture.

Housing is where money really goes further here. With average rent around $1,350 and typical electric bills coming in below $150, it's possible to stay on budget with $2,000 per month. Additionally, homeownership might be on the table given the area's below-average prices.

Population: 102,558
Average rent cost: $1,100
Average home price: $168,945
Average electric bill: $155

Wichita Falls has just over 100,000 residents and still maintains a distinctly small-town feel. You'll enjoy the walkable downtown that hosts a range of local festivals throughout the year.

With average rent sitting around $1,100 and average home prices well-below $170,000, it's possible to lock in an affordable place to call home. That leaves plenty of room in your budget for other essentials and even some fun.

Population: 203,042
Average rent cost: $1,250
Average home price: $200,799
Average electric bill: $128

Despite a population slightly above 200,000, Amarillo feels smaller thanks to its spread-out layout. Throughout the city, you'll find local parks to enjoy at a slower pace than in many of the larger cities in Texas. With average rent running around $1,250, it's feasible to cover housing and basic living expenses on a $2,000 monthly budget.

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Population: 55,779
Average rent cost: $1,400
Average home price: $121,183
Average electric bill: $165

On the Northern Gulf coast near Louisiana, you'll find an affordable haven in Port Arthur. The city's coastal location provides residents with easy access to fishing, boating, and other outdoor recreation.

Rent is relatively affordable. But home prices, averaging less than $125,000, offer an extremely affordable homeownership opportunity. Regardless of whether you rent or buy, staying on a $2,000 budget might be within reach here.

Population: 97,183
Average rent cost: $1,440
Average home price: $226,297
Average electric bill: $149

On the banks of the Concho River, San Angelo offers a respite for residents seeking a relatively low cost of living. This West Texas city is known for its historic downtown, strong ranching roots, and role as a regional hub for education and healthcare.

Rent prices average $1,440, but you can easily find more affordable places. If you opt to buy, you'll likely be pleasantly surprised by the inventory available for around $225,000. Your utility bills are also on the lower range, helping you stretch that $2,000 monthly budget further than you'd think.

Population: 28,186
Average rent cost: $1,500
Average home price: $227,353
Average electric bill: $154

With a population under 30,000, Eagle Pass is one of the smallest cities on this list. It's a border town that sits on the U.S. side. With average rent around $1,500, it's possible to lock in a budget for less than $2,000 per month. But you might be able to tap into more long-term affordability through a home purchase in Eagle Pass.

Population: 36,039
Average rent cost: $1,300
Average home price: $194,671
Average electric bill: 134

Texarkana is another border town, but it sits on the Texas side of the Texas-Arkansas border. It's a smaller city with an expanding economy, which could help you get started more easily in a new place. Housing costs in Texarkana are some of the most affordable on this list. Average rent sits at $1,300, which leaves plenty of space in your budget to cover other essentials.

Population: 87,288
Average rent cost: $1,395
Average home price: $217,419
Average electric bill: $150

Mission, a suburb of McAllen, sits on the U.S.-Mexican border. Average rent is around $1,395, leaving breathing room for utilities and groceries within a $2,000 monthly budget. You'll find plenty of outdoor activities, like hiking, birding, and mountain biking, near town. Plus, a bustling downtown filled with local shops and restaurants.

Population: 110,325
Average rent cost: $1,570
Average home price: $247,610
Average electric bill: $155

Known for its green spaces and historic neighborhoods, Tyler offers more amenities than many towns of its size without feeling overcrowded. With average rent and home prices well-below the national average, it's possible to stretch your dollars further in this East Texas city.

Population: 190,166
Average rent cost: $1,600
Average home price: $191,768
Average electric bill: $140

Brownsville sits on the Southern border and near the Gulf, making it one of the few Texas coastal cities that might be an affordable option for you. The average rent is around $1,600, but you can easily find a space that works for less than $1,200.

If you are dreaming of homeownership, Brownsville's relatively affordable housing market could help make that dream a reality. If you can carefully keep your housing costs low, you'll find some breathing room for other everyday expenses, like electricity bills.

Finding a new place to call home might help you make ends meet, especially if you choose one of these affordable Texas towns. But before you jump into a move, consider making a visit to make sure you like the place.

As you look ahead to your later years and set yourself up for retirement, consider making the most of your new town's affordability by tucking away funds that can cover your golden years.