Dallas is considered moderately expensive in 2025, with average rent for a 2-bedroom apartment at $1,950 and slightly higher grocery and utility costs compared to national averages.
Is the true cost of living in Dallas higher than you think? Many people are drawn to the Big D for its strong job market and relatively affordable housing compared to other major metros. But what does it really cost to live comfortably in this sprawling Texas city? Let’s break down the monthly expenses you can expect in Dallas in 2025.
Housing Costs in Dallas
Housing is the biggest factor in the cost of living in Dallas. While the city offers a range of options from downtown high-rises to suburban single-family homes, prices have been steadily rising. As of 2025, the typical rent for a 2-bedroom apartment in Dallas is around $1,950 per month. Buying a 3-bedroom house will cost between $350,000 to $500,000 on average, depending on the neighborhood.
Some of the more affordable areas for renting include:
- South Dallas: $1,400 – $1,700/mo for a 2BR
- North Dallas: $1,600 – $1,900/mo for a 2BR
- East Dallas: $1,500 – $1,800/mo for a 2BR
Pricier neighborhoods like Uptown, Downtown, and Park Cities can see rents over $2,500 for a 2-bedroom. Many apartment complexes and newer subdivisions also charge monthly HOA fees ranging from $200-500, so factor that into your budget.
Utility Costs in Dallas
Summers in Dallas are notoriously hot and humid, which means higher electricity bills for air conditioning. The average monthly energy bill is around $150-200 for a 2-bedroom apartment. Water, sewer, and trash are often included in rent for apartments but can add another $80-100/month for houses.
Here’s a sample utility cost breakdown for a 2-person household in Dallas:
| Utility | Average Monthly Cost |
|---|---|
| Electricity | $150 |
| Water & Sewer | $60 |
| Natural Gas | $40 |
| Internet & Cable | $100 |
| Cell Phone | $80 per line |
Groceries and Food Costs
Grocery costs in Dallas are slightly higher than the national average. Expect to spend around $350-400 per person per month on groceries and household items. Dining out will add even more – a typical meal out costs $15-20 per person for fast casual, or $30-50 for a nice sit-down restaurant.
To give an idea, here are some typical grocery item costs in Dallas:
- Gallon of milk: $3.50
- Loaf of bread: $2.75
- Dozen eggs: $2.50
- Pound of chicken breast: $3.25
Taxes and Fees in Dallas
Texas has no state income tax, which is a big draw for many. However, property taxes in Dallas County are on the higher side at around 2.3% of assessed home value. On a $400K house, that’s over $9,000 per year. Sales tax in Dallas is 8.25%, and there are also annual vehicle registration fees of around $75 per vehicle.
| Tax/Fee Type | Rate |
|---|---|
| Property Tax | 2.3% of home value |
| Sales Tax | 8.25% |
| State Income Tax | 0% |
| Vehicle Registration | ~$75 per vehicle annually |
Monthly Budget Summary
So what kind of monthly income do you need to live comfortably in Dallas? Here’s a sample budget breakdown for different household sizes, based on average costs for a middle-class lifestyle in the city. Keep in mind these are pre-tax gross income estimates:
| Expense | Single Person | Couple | Family of 4 |
|---|---|---|---|
| Housing (Rent/Mortgage) | $1,400 | $1,950 | $2,400 |
| Utilities | $250 | $350 | $500 |
| Groceries & Dining Out | $500 | $900 | $1,500 |
| Transportation | $500 | $800 | $1,200 |
| Healthcare | $300 | $600 | $1,000 |
| Other Necessities | $400 | $600 | $1,000 |
| Discretionary | $500 | $800 | $1,200 |
| Total Monthly Expenses | $3,850 | $6,000 | $8,800 |
| Gross Monthly Income Needed | $4,500 | $7,000 | $10,500 |
Lifestyle Considerations
Of course, your actual cost of living will depend on your lifestyle and priorities. Living in the heart of the city in Uptown will be pricier than the suburbs, but you may save on transportation. Texas is very car-dependent, so unless you live and work downtown, expect to drive a lot.
Dallas offers a lot of big-city amenities like sports, dining, and arts & culture. But access to the outdoors and green space is more limited than cities like Austin. Suburban homes are more affordable and spacious, but may mean a longer commute.
Compared to Houston, Dallas has slightly higher housing costs but lower humidity. Compared to Austin, Dallas offers more job opportunities, but Austin has better access to nature and a renowned food scene. San Antonio is more affordable than Dallas overall.
Frequently Asked Questions
What salary do you need to live comfortably in Dallas?
For a single person, a gross monthly income of $4,500 ($54K/year) would allow for a comfortable middle-class lifestyle. Couples should aim for $7,000/month ($84K/year) and families around $10,500/month ($126K/year). But you can certainly live on less depending on your lifestyle and housing choices.
Is Dallas cheaper than Austin?
In general, yes. Housing costs in Dallas are about 10-15% lower on average than Austin. Dallas also has slightly lower food and transportation costs. However, Austin offers a higher quality of life for many in terms of outdoor access and laid-back culture.
What is the average rent in Dallas?
As of 2025, the average rent for a 2-bedroom apartment in Dallas is $1,950 per month. 1-bedrooms average $1,500 while 3-bedrooms are closer to $2,400. Rents can vary widely by neighborhood, with the most expensive areas in Downtown, Uptown and Park Cities.
How much do utilities cost monthly in Dallas?
Expect to pay around $250/month for basic utilities like electricity, water, and gas for a 2-bedroom apartment. High summer AC use can push electric bills over $150/month alone. Larger homes have higher utility costs.
Is Dallas a good place to live?
Dallas offers a strong job market, relatively affordable housing, diverse dining and entertainment, and no state income tax. However, summers are very hot, outdoor access is limited, and traffic can be bad. Overall, it’s a solid choice for career-focused professionals and families who value city amenities and a lower cost of living compared to coastal metros.
What is the most affordable Dallas suburb?
Suburbs like Garland, Mesquite, and Duncanville offer the lowest housing costs, with typical homes under $300K. However, they are further from the city center. More established suburbs like Plano and Richardson are pricier but offer better schools and amenities.
How much is the average monthly grocery bill in Dallas?
Plan on spending $350-400 per person per month for groceries and household essentials. This assumes a mix of cooking at home and dining out. Buying in bulk and shopping at discount stores can help lower your grocery bill.
What other costs of living should I consider in Dallas?
Besides housing, utilities, food and taxes, don’t forget to factor in other costs like:
– Transportation (car payment, gas, insurance, maintenance)
– Healthcare (insurance premiums, prescriptions, co-pays)
– Childcare and education costs
– Personal care and clothing
– Entertainment and dining out
– Travel and leisure
– Debt payments (student loans, credit cards)
– Savings and retirement contributions