Memphis vs Waco
Cost of Living Comparison · 2026 Data
Memphis
Waco
💡 The Verdict
Memphis is 8% cheaper than Waco overall. A $75,000 salary in Memphis is equivalent to $81,250 in Waco.
Category-by-Category Breakdown
Index values for Memphis (left) vs Waco (right). National average = 100.
Detailed Price Comparison
Estimated item-level prices in Memphis versus Waco. Differences shown from Memphis perspective.
| Item | Memphis | Waco | Difference |
|---|---|---|---|
| 1-Bed Rent | $720/mo | $990/mo | $-270.00 |
| 2-Bed Rent | $1,000/mo | $1,270/mo | $-270.00 |
| 3-Bed Rent | $1,300/mo | $1,580/mo | $-280.00 |
| Bread (loaf) | $2.40 | $2.32 | +$0.08 |
| Milk (gallon) | $3.74 | $3.14 | +$0.60 |
| Eggs (dozen) | $3.05 | $2.69 | +$0.36 |
| Coffee (latte) | $5.47 | $4.65 | +$0.82 |
| Gas (gallon) | $3.29 | $2.98 | +$0.31 |
| Restaurant Meal | $13.90 | $14.92 | $-1.02 |
💰 Salary Equivalence
A $75,000 salary in Memphis has the same purchasing power as $81,250 in Waco.
Conversely, $75,000 in Waco equals $69,231 in Memphis.
💼 Take-Home Pay Comparison
Estimated annual take-home pay on a $75,000 salary after federal, FICA, and state income taxes.
Both states have similar effective tax rates on this salary level. Tennessee details → · Texas details →
Reading These Numbers: Memphis (84) vs Waco (91)
Memphis at 84 is 16% below the US average, while Waco at 91 is 9% below average. The cost difference between these cities is relatively modest.
In Memphis, the composite index of 84 reflects a weighted calculation where housing carries the most influence at 63, followed by groceries (93), utilities (88), transportation (98), and healthcare (92). Costs are fairly balanced across categories.
For renters: With median rents of $1,000/mo in Memphis and $1,270/mo in Waco, the annual rent difference is approximately $3,240.0. Over a 5-year period, that compounds to $16,200.0 in savings by choosing the more affordable city.
For homebuyers: The $181,000.0 difference in median home prices between Memphis and Waco translates to meaningful differences in mortgage payments at current rates. Factor this into your budget alongside property taxes and insurance, which also vary by location.
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Making Your Decision: Memphis vs Waco
Choosing between Memphis and Waco involves more than just comparing index numbers. Consider how each category aligns with your personal spending patterns. If you work from home, transportation costs matter less than housing and utilities. If you eat out frequently, the groceries index may understate your actual food spending — look at the restaurant meal prices in the detailed comparison table above instead.
When weighing Memphis against Waco, think beyond the composite index. Your personal savings rate, retirement timeline, and family size all influence which cost categories dominate your budget. Someone spending sixty percent of income on housing and childcare will experience these two cities very differently than a single renter whose largest variable expense is dining out. Model your own spending breakdown against the category indices above for the most realistic comparison.