Retire Modestly in Houston, TX (2026)
Small apartment, cook at home, public transit, minimal travel. In Houston (COL 95), this costs $2,533/month — a $2K less than the US average.
Monthly budget breakdown
Estimated monthly expenses for a modest retirement in Houston (COL-adjusted from national baseline).
| Category | Monthly | Annual | % of budget |
|---|---|---|---|
| Housing | $836 | $10,032 | 33% |
| Food | $380 | $4,560 | 15% |
| Healthcare | $355 | $4,260 | 14% |
| Transport | $304 | $3,648 | 12% |
| Leisure | $355 | $4,260 | 14% |
| Misc | $304 | $3,648 | 12% |
| Total | $2,533 | $30,400 | 100% |
How long to save $760K?
Time to reach your nest egg target investing at 7% annual return (S&P 500 historical avg).
| Monthly savings | Years to retire | Retirement age (start 30) |
|---|---|---|
| $1,000/mo | 25 yrs | Age 55 |
| $2,000/mo | 17 yrs | Age 47 |
| $3,000/mo | 14 yrs | Age 44 |
| $5,000/mo | 10 yrs | Age 40 |
| $8,000/mo | 7 yrs | Age 37 |
Houston vs US average — Modest retirement
Other retirement tiers in Houston
Frequently asked questions
How much does a modest retirement cost in Houston?
A modest retirement in Houston costs approximately $30,400/year or $2,533/month — based on a 95 cost-of-living index (US avg = 100). Using the 4% safe withdrawal rule, you need a nest egg of about $760K.
How long will it take to save $760K for retirement in Houston?
Saving $2,000/month at a 7% average annual return would take roughly 17 years to accumulate $760K. At $3,000/month, it would take about 14 years. These estimates assume consistent investing in a diversified portfolio.
What is the biggest expense in a modest retirement in Houston?
Housing is the largest expense at roughly 33% of the budget ($836/month). Healthcare ($355/month) is the second-largest category. TX has no state income tax, which reduces your overall tax burden in retirement.
4% safe withdrawal rule · 7% annualized return assumption · COL-adjusted from BLS data · Q1 2026 estimates