Living comfortably in San Marcos, TX typically requires a gross monthly income of around $4,200 for a couple or $5,800 for a family of four, based on 2025 cost estimates. Here’s a closer look at the expenses that make up the cost of living in this growing Austin suburb.
Housing Costs in San Marcos
Housing is the biggest expense for most San Marcos residents. As of 2025, the median rent for a 2-bedroom apartment in San Marcos is approximately $1,650 per month. Renting a 3-bedroom house costs around $2,100 monthly.
For those looking to buy, the typical mortgage payment for a 3-bedroom house in San Marcos falls in the range of $1,900 to $2,400 per month, assuming a 20% down payment. Some neighborhoods have mandatory Homeowners Association (HOA) fees, which can add $200-400 to the monthly housing cost.
| Housing | Monthly Cost |
|---|---|
| 2BR Apartment Rent | $1,650 |
| 3BR House Rent | $2,100 |
| 3BR House Mortgage | $1,900 – $2,400 |
Utilities and Energy Bills
Utility costs in San Marcos are relatively affordable compared to other parts of the Austin metro area. Residents can expect to pay around $120 per month for electricity for a 2-bedroom apartment, with costs rising to $180 or more for larger homes. Water, sewage, and trash collection fees typically add another $60-80 per month.
Keep in mind that electricity bills tend to spike in the hot summer months, as air conditioning is a must in Central Texas. Budgeting an extra $50-100 per month for June through September is wise.
- Electricity: $120-$180/month
- Water, Sewage, Trash: $60-$80/month
- Summer Cooling Spike: +$50-$100/month
Groceries and Daily Expenses
Food costs in San Marcos are on par with the national average. Plan to spend around $300-400 per person each month for groceries, household items, and toiletries. This assumes a mix of home cooking and occasional restaurant meals.
A typical grocery basket containing staples like bread, milk, eggs, chicken, rice, and veggies runs about $60-70 in San Marcos stores. Eating out can add up quickly, with a basic meal at a casual restaurant costing $12-18 per person, not including tip.
Taxes and Fees
Texas has no state income tax, which helps offset other costs. However, property taxes in San Marcos are relatively high, with most homeowners paying an effective rate of 1.8% to 2.2% of their home’s assessed value annually.
San Marcos residents also pay a sales tax of 8.25% on most purchases, as well as annual vehicle registration fees of around $75 per car. If your neighborhood has an HOA, dues can range from $20 to over $100 per month.
| Tax/Fee | Rate |
|---|---|
| Property Tax | 1.8% – 2.2% |
| Sales Tax | 8.25% |
| Vehicle Registration | ~$75/year per car |
| HOA Dues | $20 – $100+/month |
Monthly Budget Summary
| Expense | Single | Couple | Family of 4 |
|---|---|---|---|
| Housing (Rent/Mortgage) | $1,200 | $1,650 | $2,100 |
| Utilities | $150 | $200 | $280 |
| Groceries & Dining | $400 | $700 | $1,200 |
| Transportation & Vehicle | $300 | $500 | $800 |
| Healthcare | $250 | $500 | $800 |
| Other (Entertainment, Clothes, Etc.) | $300 | $500 | $800 |
| Total Monthly Expenses | $2,600 | $4,050 | $5,980 |
| Comfortable Gross Monthly Income | $3,500 | $5,400 | $7,900 |
Note that these figures represent gross monthly income, meaning your total earnings before taxes and deductions. To comfortably cover living expenses, aim to earn 25-35% more than your projected costs.
Lifestyle Considerations
San Marcos offers a mix of suburban convenience and Hill Country charm, with a lower cost of living than nearby Austin. Residents enjoy easy access to shopping, dining, Texas State University, and outdoor recreation along the San Marcos River.
Most homes in San Marcos are newer, with construction dates in the 1990s-2010s, and neighborhoods tend to be safe and family-friendly. However, heavy traffic along I-35 means that commute times can be lengthy for those working in central Austin.
Opting for an older home or a location further from the highway can mean lower housing costs, but may involve trade-offs in terms of amenities, schools, or commute times. Renting is often more affordable than buying in San Marcos, giving residents more flexibility and savings to enjoy the area’s lifestyle options.
Frequently Asked Questions
- What salary do you need to live in San Marcos?
To live comfortably, a single person needs a gross monthly income of at least $3,500. Couples should aim for $5,400 and families around $7,900. - Is San Marcos cheaper than Austin?
Yes, the cost of living in San Marcos is about 10% lower than in Austin proper, mainly due to more affordable housing and lower taxes. - What is the average rent in San Marcos?
As of 2025, average rent in San Marcos is $1,650 for a 2-bedroom apartment and $2,100 for a 3-bedroom house. - How much are property taxes in San Marcos?
The typical property tax rate in San Marcos is 1.8% to 2.2% of a home’s assessed value per year. - Is San Marcos a good place to live?
San Marcos offers an appealing mix of affordability, suburban comfort, college town energy, and outdoor recreation, making it an attractive option for many Austinites. - What is the sales tax rate in San Marcos?
The sales tax in San Marcos is 8.25% as of 2025, which includes both state and local taxes. - How much does it cost to buy a house in San Marcos?
A typical 3-bedroom house in San Marcos costs between $350,000 to $450,000 in 2025, with mortgage payments ranging from $1,900 to $2,400 per month. - What are the average utility bills in San Marcos?
Residents pay around $120-$180 per month for electricity, plus $60-80 for water, sewage, and trash. Expect summer electric bills to be $50-100 higher.