Last Updated on: 13th October 2023, 01:31 am

Fort Worth, Texas, is a rapidly growing city and is the county seat of Tarrant County. Spanning 350 square miles and with a population of 940,437 residents, Fort Worth is one of the largest cities in the US. The city boasts Texas charm with the amenities and attributes of big-city living. Although large and highly desirable, that doesn’t mean the cost of living in Fort Worth, Texas, is out of budget for the average American. In fact, the Fort Worth cost of living is more affordable than the average US city. Along with other Texas cities, Fort Worth is tied for 7th as a US city where 100k goes the furthest! Not to mention the affordable Fort Worth, Texas, real estate; Fort Worth home prices are down 3.5% and continue to drop. Some cities in Texas are more affordable, but they don’t offer the spunk, pizzazz, and character you get from Fort Worth!

Fort Worth Cost of Living Index

How far your paycheck can go depends on various factors, with the location being the main one. For example, 100k in New York is only worth about $81,000 in Houston, Texas, or $86,000 in Memphis, Tennessee.

Other factors that can affect your cost of living:

  • Household size
  • Location
  • Neighborhood
  • Life style

What is a Cost of Living Index (COLI)

A COLI (or Cost of Living Index) is a theoretical price index. This index measures important costs of living depending on location and helps people gain a better idea of their income, how much money they have to spend, and if they can afford a specific city/region. The national average COLI is 100.0, meaning anything above 100.0 has a higher cost of living than the average city, whereas anything below is more affordable than the average US city.

For example, the cost of living index in Fort Worth is 100.2, putting it ever so slightly above the US average. While Fort Worth has a higher cost of living in some areas, the housing market in Fort Worth, Texas, is 83.1, or 16% cheaper than the average US city. The DFW housing market is stable and is projected to remain so.

Other Fort Worth cost of living that’s more affordable:

  • The transportation index is 93.1, or 6.9% lower than the national average
  •  Healthcare has an index of 95.7, or 4.3% lower than the national average

Fort Worth Consumer Price Index (CPI)

According to the U.S. Bureau of Labor and Statistics, the CPI for the Dallas-Fort Worth-Arlington area has increased 0.8% since January 2023 and has raised 7.5% in the past year. However, the energy index has dropped 2.5% since December 2022, but overall, energy prices have increased 5.4% since last year.

CPI for Fort Worth

Consumer Expenditures Survey

According to the U.S. Bureau of Labor and Statistics, the average household in the Dallas-Fort Worth-Arlington, TX, metropolitan area spends $62,672 per year, which is similar to the US average of $64,187.

Consumer Expenditures Survey Report for the Dallas-Fort Worth-Arlington, TX, metropolitan area:

Income before taxes Average annual expenditures
$91,585 $62,672
Percent distribution 100.0
Food 9.6
Housing 36.5
Transportation 17.5
Healthcare 8.1
Education 2.9

Cost of Household Items, Utilities, Gas & Groceries in Fort Worth

Here we have typical Fort Worth living expenses, like what you can expect to pay for utilities or groceries.

  • 1 pound of steak: $11.96
  • 1 pound of ground beef: $3.52
  • 1 pound of sausage: $3.14
  • 1 gallon of milk: $1.72
  • 1 dozen eggs: $1.25
  • Average Fort Worth utilities per month: $233

Trinity Metro serves the Forth Worth area. Take a look at the bus routes and rates here and the train routes, rates, and more here!

The average monthly rate for car insurance in Fort Worth is $1,823, with the highest rates being $3,065 and the lowest being $997.

According to the Economic Policy Institute, for a family of four to live comfortably in the Fort Worth/Arlington metro, they would have to earn $79,054 a year.

Fort Worth Real Estate

Despite being a highly desired city, Fort Worth real estate is more affordable than most cities its size. The reasoning behind the low housing market index is the amount of land available in the city, resulting in lower land prices than normal. For example, commercial real estate in Fort Worth is even more affordable than the housing market.

Overall, the market is on a slight decline and is expected to see a continued price drop. Fort Worth is easy to buy, as 55% of the residents are homeowners. Although the Fort Worth housing market is considered slightly competitive, the average sale price is only $330,000, which is still below the US median sale price of $363,000.

Fort Worth, Texas, real estate is down 1.6% since 2022, with an average price of $172 per square foot. Fort Worth homes typically receive two offers and sell within 49 days. On average, homes sell 2% below the listing price, and 15.5% of homes are sold above the listing price; 35% of homes see price drops before selling. The Fort Worth, TX real estate market is in a good spot!

Fort Worth median sale price: 

  • Single-family home: $330,000
  • Townhouse: $331,000
  • Condos: $248,000

Price-to-Rent Ratio

Using this formula, you can see the price-to-rent ratio in Fort Worth (or any given city)

The higher the ratio, the better the market is for buyers. A good rule of thumb is anything from 1 to 15 is a buyer’s market; between 16 to 20, renting is likely better, and anything 21 and above is a bad time to buy.

Expensive and Affordable Fort Worth Neighborhoods

Like any city, Fort Worth has its expensive and affordable areas. Depending on your budget, we’re going to list a few of the most expensive and affluent neighborhoods and most affordable.

Arlington Heights is a beautiful Fort Worth neighborhood with a reasonable price range. The median home price is $352,000; while above the city’s average, this neighborhood is ranked one of the nicest in the entire city.

Rivercrest Is an incredibly affluent and expensive Fort Worth neighborhood, with an average sale price of 2.45 million, equivalent to $632 a square foot. If you’re within budget, Rivercrest should surely be considered, but that’s not to say there aren’t plenty of more affordable options.

While the Fairmount housing market is competitive, the average sale price is only $340,000, which is more affordable than the US average. Fairmount is centrally located and is considered a historic Fort Worth neighborhood.

Fairmount has a well-rated elementary and middle school and a few parks for your children to enjoy.

Each of these neighborhoods has beautiful homes already built, but if you’re in search of a more unique and personal home, you can always seek custom home builders in Fort Worth, TX as well.

Fort Worth Rental Market – Average Rent in Fort Worth

Buying isn’t always the best option, especially if the overall COLI is cheaper, but house prices aren’t following the same trends. Although renting in Fort Worth is cheaper, when you buy a home, you have more equity meaning it may be a better long-term investment.

  • Average Rent

According to RentCafe, the average rent in Fort Worth is $1,443, well below the US average of $1,718.

  • Rental Affordability

According to ATTOM, it’s more expensive to buy in Fort Worth, Texas.

  • Housing Wage

To afford to rent a small two-bedroom apartment in Fort Worth, Texas, you must earn $24.22/hr working full-time.

  • Affordable Neighborhoods in Fort Worth:
    • Willow Springs has an average monthly rent of $859
    • Lakeview renters pay $877
    • Avalon Heights has an average of $911 a month
  • Expensive Neighborhoods in Fort Worth:

Tanglewood Village, University Place, and Villages of Stonegate charge $1,776 per month.

Average Salary & Household Income in Fort Worth

Average and median salaries and household incomes of Fort Worth, Texas:

Income, Sales & Property Taxes in Fort Worth

All states, counties, and cities have different parameters surrounding their taxes and how they formulate a tax percentage.

Fort Worth Income Tax

Texas has a 0% individual income tax, making Texas a flat income tax state. While only seven US states are 0% individual income tax states, that’s another reason Fort Worth (or Texas) is a great place to state your claim!

Sales Tax Rate Fort Worth Texas

The local sales tax rate in Fort Worth, TX, is 8.250%. The December sale tax rate in Fort Worth is also 8.250%.

Sales Tax Breakdown: 

District Rate
Texas State 6.250%
Tarrant County 0%
Forth Worth 2.000%
Total: 8.250%

Property Tax Fort Worth

Property tax in Fort Worth is based on the appraisal of your property. If you feel your home/property was over-appraised, you have the right to appeal the appraisal, which is common for the Dallas/Fort Worth area.

The city of Fort Worth’s property tax rate has skyrocketed due to high home values, causing a 20% increase in Tarrant County property tax. Fort Worth’s property tax is 2.26%. Many residents were not happy and decided to appeal the tax rate. Government officials of Tarrant County, Fort Worth, and Texas are working on ways to ease property tax rates. In fact, Texas Senate recently passed a 16.5 billion dollar bill to help cut property tax percentages.

Fort Worth vs. Dallas Cost of Living?

Fort Worth cost of living comparison to living in Dallas, TX:

  • Compared to Dallas, Fort Worth, TX, has a 7.22% lower cost of living, making Fort Worth cheaper to live in than Dallas
  • If your income is currently $50,000 in Dallas, you could maintain your current lifestyle while making $46,390 in Fort Worth, TX
  • Steak is 5% more expensive in Fort Worth, TX
  • Rent is 15% cheaper in Fort Worth, Texas
  • Home prices are 15% cheaper in Fort Worth
  • Total energy costs are 1% cheaper in Fort Worth
  • Tire balance and gasoline are 6% higher in Fort Worth than Dallas
  • An optometrist visit in Fort Worth is 20% cheaper compared to Dallas, TX

Overall, the city of Fort Worth is much more affordable than Dallas!

Fort Worth, Texas is a great place to live. Despite its prime location, proximity to tons of attractions, low COLI, the affordable housing market, and overall great culture it hasn’t been too cramped or over-populated. Yes, it’s still growing, so we suggest you buy in this great location before it’s too late!

Before taking on your relocation alone, remember to reach out to trusted Fort Worth Movers to help assist with your relocation. Call Brothers Moving & Storage today at 469-772-4708 for a free estimate!