You may be surprised to learn that four out of five of the least expensive US cities are in Texas. McAllen, Texas is the lowest cost of living metropolitan area in the country. It is followed by Seguin, Texas and Laredo, Texas. Jonesboro, Arkansas is next in the list of low cost of living areas, followed by number five, Lubbock, Texas. On the whole, some states have a higher overall cost of living, including California, New Mexico, North and South Carolina, Massachusetts, Delaware, Rhode Island, New Jersey, Virginia, Delaware and Washington D.C. On the whole, Oklahoma, Missouri, Arkansas, Texas, Georgia and Tennessee offer a low cost of living. Incomes in these areas can, however, be lower.
Cost of Living 4th Quarter 2010 provides you with a clear breakdown of cost of living in each state, allowing you to make informed choices with regard to a state with low cost of living in United States.
LowCostofLiving.net - Low Cost of Living
Texas ranks 5th out of the top 10 states with lowest cost of living. But it doesn't mention Houston. I would venture a guess, given that it is a large metropolitan area, that compared to other areas in the state it is probably one of the highest cost of living.