Published March 2026 · Last updated March 19, 2026
Cost of Living in Temple, TX (2026): What It Actually Costs
Every cost-of-living page for Temple gives you the same recycled index numbers pulled from a national database. None of them name a grocery store. None of them know your electric bill triples in August. None of them can tell you the difference between buying in Windmill Farms versus Western Hills.
We live here. This page uses real prices from real places in Temple. Not abstract scores. Part of our Moving to Temple, TX guide series.
Temple, TX Cost of Living at a Glance
Temple is 13–16% cheaper than the national average across all major categories except utilities.
| Category | Temple Cost | National Avg | Difference |
|---|---|---|---|
| Housing | $261,000 median | $412,000 | 37% lower |
| Rent (1-BR) | $1,030/mo | $1,370/mo | 25% lower |
| Groceries | $305/mo (single) | $340/mo | 9% lower |
| Utilities | $375–$430/mo | $370/mo | 4% higher |
| Gas | $2.44–$2.52/gal | $3.10/gal | 19% lower |
| Auto Insurance | $1,927/yr | $2,329/yr | 17% lower |
| Property Tax | ~2.35% rate | ~1.1% rate | Higher (no income tax) |
Sources: Redfin (Feb 2026), Apartment List (Mar 2026), MIT Living Wage Calculator , C2ER , Rate Retriever , Bell CAD
How Temple Compares to the National Average
Housing Costs in Temple, TX
Median home: $261,000. Average rent: $963/month. Prices are down 2.7–4.2% from last year, and it's a buyer's market.
Temple's housing market peaked in 2022 when prices hit $280K–$300K during the post-COVID frenzy. Since then, the market has corrected. Homes now average 100–108 days on market, 46% sell below asking price, and inventory sits at 5.3 months. If you're buying, you have leverage right now that didn't exist two years ago.
What Homes Cost by Neighborhood
Where you buy in Temple matters. Prices vary by $150K+ depending on the neighborhood.
Source: Zillow Home Value Index , December 2025
What Rent Costs in Temple
Rents have dropped roughly 7–9% since 2023 and are still softening. Multiple complexes are offering one month free rent, which tells you the market favors renters right now.
| Unit Size | Avg Rent | Range |
|---|---|---|
| Studio | $810–$864 | $750 – $950 |
| 1 Bedroom | $1,030–$1,135 | $880 – $1,373 |
| 2 Bedroom | $1,194–$1,408 | $838 – $1,660 |
| 3 Bedroom | $1,550–$1,667 | $1,072 – $2,165 |
Sources: Apartment List (Mar 2026), Apartments.com/CoStar (Feb 2025), RentCafe
The most affordable complexes include The Hilltop(studios from $810), Village at Meadowbend(2-BR from $838), and Waterford Park(1-BR from $949). Premium options like Ariza Temple and Ariza Scott Blvd run $1,200–$2,100+ but offer newer finishes, pools, and fitness centers.
Utility Costs in Temple, TX
Budget $375–$430/month total. But your summer electric bill will shock you. Literally. Plan for $200–$350 in July and August.
Texas is a deregulated electricity state, which means you choose your own electric provider. Temple is served by Oncor for delivery, with 35+ retail providers competing for your business. This is actually an advantage: you can lock in rates as low as 8.3¢/kWh if you shop smart.
| Utility | Provider | Typical Monthly | Summer Peak |
|---|---|---|---|
| Electricity | Oncor + retail (TXU, Reliant, 4Change, etc.) | $155–$175 | $200–$350+ |
| Natural Gas | Atmos Energy (regulated) | $45–$65 | $25–$40 (summer) |
| Water/Sewer/Trash | City of Temple | $105–$115 | $130–$160 |
| Internet | Spectrum, AT&T, Astound | $50–$70 | Same |
| TOTAL | $375–$430 | $450–$600+ | |
Sources: ChooseTexasPower.org (Mar 2026), City of Temple rate schedule (eff. 10/1/2025), Atmos Energy Mid-Tex Tariff
Monthly Electricity Cost by Season (Typical Temple Home)
Grocery Costs in Temple, TX
Temple ranked #2 cheapest city in America for groceries. H-E-B is the reason.
The Council for Community and Economic Research (C2ER) ranked Temple as the second cheapest city in the entire United States for groceries, behind only Thibodaux, Louisiana. Temple's grocery prices sit 8.7% below the national average. The primary reason is H-E-B, which operates two full-service locations in Temple and consistently underprices Walmart, Kroger, and national chains.
| Store | Type | Best For |
|---|---|---|
| H-E-B(2 locations) | Full-service grocery | Everyday shopping, produce, meat, deli |
| Walmart Supercenter(2 locations) | Big-box | Bulk basics, household goods |
| ALDI | Discount grocery | Budget staples, private label |
| Sam's Club | Warehouse | Bulk buying, families |
| Natural Grocers | Health/organic | Organic produce, supplements |
| Brookshire Brothers | Regional chain | Quick trips, deli |
Sources: MIT Living Wage Calculator , Killeen-Temple MSA (Feb 2026); Salary.com ; C2ER/KDH News (2024)
Transportation Costs in Temple, TX
Gas at $2.44/gallon. The cheapest auto insurance among 88 Texas cities. A 19-minute average commute.
Temple is a car-dependent city. A full 88.4% of residents drive alone to work. The good news: gas is cheap, insurance is the lowest in the state, and you can get anywhere in town in under 20 minutes. There's no real rush hour traffic except at the I-35/Loop 363 interchange around 5 PM.
Public transit exists but is limited. The HOP (Hill Country Transit District) runs an on-demand microtransit service within Temple city limits for $2/ride via app, Mon–Fri 6 AM–8 PM. A commuter bus connects Temple to Killeen and Copperas Cove. Amtrak's Texas Eagle stops daily in Temple (Austin ~2 hrs, Dallas ~4 hrs). FlixBus runs twice daily to Austin for $8–$21.
Temple-to-Austin Commute Cost
If you're considering living in Temple and commuting to Austin (about 65 miles, 45–70 minutes each way), here's what it actually costs:
| Expense | I-35 (no tolls) | TX-130 (toll route) |
|---|---|---|
| Monthly gas (20 days, 25 MPG) | $272–$298 | $272–$298 |
| Tolls | $0 | $240–$320 |
| Vehicle wear ($0.15/mi) | ~$408 | ~$408 |
| Monthly total | ~$680–$706 | ~$920–$1,026 |
That commute cost is significant. But compare it to the $494/month you save on rent alone(Temple 1-BR vs. Austin 1-BR), plus cheaper gas, insurance, and groceries. For many Austin transplants, the math still works, especially if you're only in the office 2–3 days per week.
Healthcare Costs in Temple, TX
Temple is a healthcare city. Over 40% of the local workforce is in healthcare, anchored by Baylor Scott & White's 636-bed flagship hospital.
Living in a healthcare hub has real cost advantages. Baylor Scott & White Medical Center – Temple is the flagship of the largest not-for-profit health system in Texas (53 hospitals, 59,000+ employees). BSW also runs its own health insurance plan, rated #1 in Texas by J.D. Power 2025, with Medicare Advantage plans starting at $0/month premium.
The VA Central Texas Healthcare System(Olin E. Teague Veterans' Medical Center) serves 252,000+ veterans across 39 counties. AdventHealth Central Texas in Killeen adds 230 beds with 300+ physicians across 43 specialties about 25 miles away.
| Coverage Type | Avg Cost | Notes |
|---|---|---|
| Employer-sponsored (single) | ~$120/month (employee share) | $9,325/yr total, employer pays ~$7,200 |
| Employer-sponsored (family) | ~$571/month (employee share) | $26,993/yr total |
| ACA Marketplace (2025) | ~$57/month after subsidies | Silver benchmark: $489 pre-subsidy |
| ACA Marketplace (2026) | Varies (higher) | Benchmark rose to $661/mo pre-subsidy |
Sources: KFF 2025 Employer Benefits Survey , HealthInsurance.org , BSW Health Plan , Texas Tribune (Oct 2025)
Taxes in Temple, TX
No state income tax. But property taxes run ~2.35% before exemptions. Here's the real math.
Texas is one of 9 states with zero state personal income tax. That means if you earn $75,000, you keep roughly $3,000–$4,500 more per year than you would in California, New York, or Illinois. The tradeoff: Texas property taxes and sales tax are higher than most states.
Property Tax Breakdown (Tax Year 2025)
| Taxing Entity | Rate per $100 | On $258K Home (before exemptions) |
|---|---|---|
| Temple ISD | $1.1372 | $2,934 |
| City of Temple | $0.6999 | $1,806 |
| Bell County | $0.3128 | $807 |
| Temple College | $0.2017 | $520 |
| Total (no exemptions) | ~$6,067/year | |
But nobody pays the full rate. Texas offers generous homestead exemptions that significantly reduce your taxable value:
The school district homestead exemption jumped to $140,000 in 2025 (from $100,000) under state legislation. Seniors get an additional $60,000 exemption plus a mandatory school tax freeze: once you turn 65, your school taxes never increase regardless of property value appreciation. The Texas Senate also passed a bill in April 2025 to raise the senior exemption to $200,000.
Sales tax: 8.25%(state 6.25% + local 2.00%). This is the maximum rate allowed in Texas. However, groceries are exempt from Texas sales tax, which softens the impact considerably.
Sources: Bell CAD 2025 Tax Rate Chart (Sept 2025), Texas Comptroller , Ownwell (median effective rate 1.76%)
Temple vs. Austin, Waco & Killeen
Temple is 22–28% cheaper than Austin, 1–6% more than Waco, and essentially identical to Killeen.
Austin homebuyers are the #1 group searching to move to Temple according to Redfin migration data (Q4 2025). Los Angeles, Seattle, and Washington DC round out the top five. People are moving here for one reason: the math.
Median Home Price: Temple vs. Nearby Cities
| Category | Temple | Austin | Waco | Killeen |
|---|---|---|---|---|
| Median Home | $261K | $435K–$495K | $235K | $240K |
| 1-BR Rent | $1,030 | $1,524 | $980 | $1,020 |
| Overall COL | 13–16% below | 15–29% above | 15–18% below | 13–16% below |
| Drive to Austin | 45–70 min | N/A | 90+ min | 60–75 min |
| Major Hospital | BSW Flagship (636 beds) | Multiple | Providence (454 beds) | AdventHealth (230 beds) |
Waco is slightly cheaper, about 1–6% depending on the source, but it's 30 minutes farther from Austin and doesn't have Temple's healthcare infrastructure. Killeen is essentially the same cost but has a more military-dependent economy and higher crime rates. Temple threads the needle: affordable, close to Austin, excellent healthcare, and a revitalizing downtown.
Realistic Monthly Budgets for Temple, TX
What it actually costs month-to-month. No index scores. Just dollars.
Single Person Budget
| Expense | Monthly Cost | Notes |
|---|---|---|
| Rent (1-BR) | $1,030–$1,135 | Avg Temple 1-BR |
| Utilities (all) | $275–$330 | Electric, gas, water, internet |
| Groceries | $305–$378 | H-E-B & ALDI mix |
| Gas & car insurance | $200–$250 | $161/mo insurance + fuel |
| Healthcare (employee share) | $120 | Employer-sponsored single |
| TOTAL | $1,930–$2,093 |
Family of 4 Budget
| Expense | Monthly Cost | Notes |
|---|---|---|
| Rent (3-BR) | $1,550–$1,667 | Avg Temple 3-BR |
| Utilities (all) | $375–$430 | Larger home, more usage |
| Groceries | $893–$1,227 | 2 adults, 2 children |
| Gas & car insurance | $350–$450 | 2 vehicles |
| Healthcare (employee share) | $571 | Family plan |
| TOTAL | $3,739–$4,345 |
These budgets don't include childcare ($612–$680/month average), dining out, entertainment, or savings. Childcare is a major cost for families, though Temple ranks well below the Texas and national averages. Temple College offers in-district tuition at ~$5,040/year, and UMHB in Belton just launched a free tuition program for households earning $75,000 or less.
Is Temple Getting More Expensive?
Home prices are actually down right now. But Temple's population grew 24% in 5 years, and a $1.2 billion data center just broke ground. The long-term trajectory is up.
Temple crossed 100,000 residents in 2025, up from 82,073 in the 2020 Census. That's roughly 4,000 new residents per year. The growth is driven by Austin migration, healthcare expansion at BSW, and major economic development:
- Rowan Digital Infrastructure:$1.2 billion data center campus, groundbreaking January 2026. Phase 1 alone is $700M. Operational by 2027.
- Meta Data Center:$800+ million, 900,000 sq ft facility on 393 acres. ~100 permanent operational jobs.
- Downtown City Center: Completed November 2025. Mixed-use redevelopment of the historic Hawn Hotel/Arcadia Theater/Sears buildings.
- SeAH Superalloy Technologies:$110M manufacturing facility, 100+ new jobs.
- Santa Fe Plaza:~$40M public plaza, business center, 300 downtown jobs.
U.S. News ranked Temple in the Top 100 Best Places to Live for 2025–2026 with a 9.4/10 value score. The Temple EDC reports $2 billion+ in private investment over the past decade.
The housing market has cooled from its 2022 peak. Prices are down 2.7–4.2% year-over-year and it's firmly a buyer's market. But the population growth and investment pipeline suggest this window of affordability won't last forever. Temple is still affordable, but it's changing.
Insider Tips to Save Money in Temple
Local knowledge that no cost-of-living calculator will ever tell you.
- H-E-B digital coupons are the single best money hack in Temple. Download the app, clip coupons before every trip, and stack them with weekly sales. $30–$60/month savings is normal.
- Shop for electricity in fall/spring when rates are lowest. Lock in a 12-month fixed plan. Never go month-to-month because summer variable rates can double your bill.
- File your homestead exemption immediately after closing on a home. It saves $2,000+/year in property taxes and most people don't realize they need to file it themselves with Bell CAD.
- Temple Parks & Rec offers free and low-cost programming: summer camps, adult sports leagues, pool access, and the entire Pepper Creek Trail system. See our full activity guide for 55+ things to do.
- $2 Taco Tuesdays at Arusha's Coffee in Belton. Best deal in Bell County for lunch.
- Temple Farmer's Market on Saturday mornings for seasonal produce that undercuts grocery store prices during peak growing months.
- Temple Public Library card is free for all Bell County residents and gives you access to books, audiobooks, DVDs, free Wi-Fi, computer access, and printing.
- The HOP microtransit is $2/ride within city limits if you want to skip gas costs for errands. Download the app.
