F
32%
Overall NAT. AVG.
21%
Goods & Services NAT. AVG.
83%
Housing NAT. AVG.
Search Homes for Sale
Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.
The cost of living index is based on a national average of 100. For example, if the cost of living is 90, then it is 10% lower than average. If the cost of living is 110, then it is 10% higher than average. The breakdown for each index is as follows: goods & services (33%), groceries (13%), health care (5%), housing (30%), transportation (9%) and utilities (10%). If the cost of living data was unavailable for this city, estimates based upon nearby cities were used.
Index Melissa Texas National
Cost of living13292100
Goods & Services12196100
Groceries9796100
Health care11094100
Housing18383100
Transportation9492100
Utilities115104100

An Overview of Cost of Living in Melissa, TX

Getting a feel for the cost of living in Melissa is essential for anyone planning to relocate, as it empowers them to make informed financial decisions, secure a comfortable lifestyle and maintain financial stability in their new environment. The cost of living in Melissa is 132, which is 32% higher than the national average. Relocating individuals may need to adjust their savings and investment strategies based on the cost of living in the new location. It influences decisions about retirement planning, investments and financial goals.

If you prioritize affordability when seeking a new place to live, Melissa may not be your ideal choice, as it ranks among the most expensive locations in the entire United States. A very small amount of areas exhibit a cost of living at least 20% higher than the national average, and unfortunately, Melissa falls into this category, which may not align with your preferences for a budget-friendly living environment.

When it comes to the cost of living in Melissa, housing costs are a real heavyweight, often hogging a significant chunk of your earnings. Sadly, in this area, housing expenses for both buying and renting were 82.7% more expensive compared to your average city. That means you'll be shelling out more for homes, rents, mortgage rates and insurance.

Recurring goods and services expenses like haircuts, toothpaste, gym memberships and movie nights are a big part of your spending and make up 33% of the cost of living index. In Melissa, these items will cost you 20.6% more than what most folks pay, making it a bit more expensive to live here.

Is Melissa Affordable?

Is Melissa affordable? This is a pivotal question, especially when mulling over a move, as affordability carries substantial weight in your decision-making process. Factors such as the cost of living index (discussed earlier), housing expenses and income levels all contribute to a location's affordability. For instance, in Melissa, the median home price is 73.4% higher than the national average and monthly rent prices are 104.6% higher than the typical rates. Additionally, the median income levels play a role in affordability, with Melissa boasting a median household income of $117,750, 112.8% higher than the national average.

What Factors can Influence the Cost of Living in Melissa?

Subsidies: Some areas might offer government subsidies or assistance programs that help lower cost of living for residents. These programs can include anything from Medicare, Medicaid, housing subsidies, low-income home energy assistance programs, school lunch programs, supplemental nutrition assistance programs, student loans, electric vehicle tax credits, affordable care act subsidies and crop subsidies. Areas that offer less subsidies, could see an increase in their cost of living.

Urbanization: Larger, urban hubs brimming with ample amenities and robust employment opportunities often showcase a heightened cost of living. This surge is primarily attributed to the amplified demand for services and increased residential migration, culminating in elevated home prices and elevated rental rates. Conversely, less densely populated rural locales or regions characterized by reduced demand tend to offer a more limited array of amenities and undergo slower job market growth, ultimately yielding a more affordable cost of living.

Transportation: In areas where public transportation is scarce or unavailable, residents often find themselves compelled to own and upkeep vehicles, thereby increasing the overall cost of living. Monthly expenses encompass fuel, insurance, routine maintenance and potentially lease or financing payments. In Melissa, the transportation index is 6.4% lower than the national average.

Where is the Data From?

The Melissa cost of living data you see above is sourced from the C2ER cost of living index, providing a practical and accurate means of comparing living expenses in urban areas. Updated quarterly, this index gathers data from over 300 independent researchers, covering more than 60 goods and services, in 6 different categories. These selections are made meticulously to represent a wide range of consumer expenditure categories. The weightings applied to cost differences are based on government survey data that tracks spending patterns among professional and executive households. It's important to note that while the C2ER index excludes data on sales or income tax rates, AreaVibes factors tax rates into the overall cost of living score for each region.

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Cost Of Living Quick Facts

  • The cost of living in Melissa is 43% higher than the Texas average
  • The cost of living in Melissa is 32% higher than the national average
  • Melissa housing is 83% higher than the national average
  • Texas general sales tax is 22% higher than the national average
  • Texas state income tax is 100% lower than the national average

Most Affordable Places to Live in and Around Melissa

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Compare Melissa, TX Cost of Living

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      Salary Calculator

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      Price difference in compared to
      Cost of living index
      Goods & Services index
      Groceries index
      Health care index
      Housing index
      Transportation index
      Utilities index

      Median Income & Debt-To-Income Ratio

      Median Income Per Year Per Month Max Budget (28% DTI) Max Budget (36% DTI)
      Owners$129,208$10,767$3,015$3,877
      Renters$75,375$6,281$1,759$2,261
      A good way to judge both the affordability of the housing and the cost of living in Melissa is by simply calculating the maximum that should be spent on housing, otherwise known as the debt-to-income ratio (DTI). The plan is to avoid spending more than 28 percent of the gross income on costs that pertain to housing and no more than 36 percent on all expenses and debts. Melissa has a median income of about $129,208 for people who own homes. Based on that number, a maximum of $3,015 should be spent on expenses related to housing. Renters have a slightly different median income, which is $75,375. Based on this average, renters should spend no more than $1,759 on all rental costs if they want to maintain a non-impoverished standard of living.

      Texas Sales Tax

      State General Sales Tax With Max Surtax
      Texas 6.25% 8.25%

      Texas Income Tax

      State Income Tax (Low) Income Tax (High)
      Texas 0% 0%

      Goods & Services

      Item Melissa National avg. Difference
      Haircut $23.57$24.262.8%
      Beauty Salon $35.11$45.5622.9%
      Toothpaste $3.51$3.705.1%
      Shampoo $1.22$1.284.7%
      Movie $11.85$12.132.3%
      Bowling $16.96$18.005.8%

      Groceries

      Item Melissa National avg. Difference
      Ground Beef $5.44$5.846.9%
      Fried Chicken $1.32$1.5716.1%
      Milk $4.63$4.670.9%
      Potatoes $4.15$4.9316.0%
      Pizza $11.96$12.091.0%
      Beer $10.27$10.411.4%

      Health Care

      Item Melissa National avg. Difference
      Optometrist $96.63$125.6823.1%
      Doctor $131.00$135.783.5%
      Dentist $86.73$113.2923.4%
      Ibuprofen $10.40$10.652.4%
      Lipitor $484.49$468.603.4%

      Housing

      Item Melissa National avg. Difference
      Home Price $320,200.00$184,700.0073.4%
      Avg. Mortgage Payment $1,562.33$2,346.6933.4%
      Apartment Rent $1,942.00$949.00104.6%

      Transportation

      Item Melissa National avg. Difference
      Gasoline $3.47$3.460.3%
      Tire Balancing $66.47$59.9210.9%

      Utilities

      Item Melissa National avg. Difference
      All Electricity $145.64$193.9924.9%
      Phone $208.71$192.258.6%
      Although the cost of living data is updated regularly, this cost of living information is to be used as estimates only as prices can change on an ongoing basis.

      Nearby cities with low cost of living

      City Population Cost of Living Index National Avg.
      Trenton, TX669991.1%
      Blue Ridge, TX8281054.8%
      Westminster, TX7681065.6%
      Van Alstyne, TX4,1531066.3%
      Farmersville, TX3,56011110.9%
      Melissa, TX10,77413232.5%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Tay, ON10,774n/a 
      Waihee-Waiehu, HI10,77116969.4%
      Newport, OR10,76711312.9%
      Taylorville, IL10,7668217.6%
      Bellmead, TX10,7638515.2%
      Melissa, TX10,77413232.5%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.