What is Considered Low Income in Houston, Texas? 

Houston, Texas is a vibrant and bustling city, known for its thriving energy industry, diverse culture, and rich history.

But despite its prosperity, Houston also has a significant population of low-income residents who struggle to make ends meet on a daily basis. 

Whether you’re a lifelong resident or simply interested in learning more about the city, this article offers a comprehensive look at the issue of low income in Houston and the efforts being made to address it. 

What does low income mean in Houston, Texas?

According to the Houston government,  low income is defined as earning 80% of median income or less. For an individual in 2023, an annual income of around $45,000 and below is considered to be low income.

Another way of determining low income in Houston is by looking at the federal poverty line. As of 2023, the federal poverty line in the US for an individual is set by the federal government at $13,590 and at $27,750 for a family of 4. 

An individual who earns less than 130%-150% of the federal poverty income level, is considered to be earning low income. 

Low Income: Houston V.S. Other Cities 

According to the Census Bureau‘s data, the table below lists the low income statistics in Houston as well as other major cities in the USA and in Texas.

Houston	$35,000 – $45,000
New York	$30,000 – $40,000
Los Angeles	$30,000 – $40,000
Austin	$30,000 – $40,000
Dallas	$25,000 – $35,000

The table above summarizes the average annual earnings of low income families in major cities in Texas as well as the USA. Although Houston’s numbers are the highest above the rest, it is important to note that the living costs in Houston are higher as well. 

The section below will explain this further. 

Average Income V.S. Cost of Living in Houston

In Houston, the median household income is around $56,000, which is significantly higher than the national average of $44,000. 

However, it is important to note that the cost of living in Houston is also higher than the national average, making it difficult for many families to make ends meet on a lower income.

According to the Houston Chronicles, listed below are the average cost of necessary expenses for people living in Houston. The values are estimated for an individual on a monthly basis and annual basis.

Rent	$1,650 – $2,500
Utilities	$225 – $300
Groceries	$450 – $600
Eating Out, Entertainment, Exercise	$85 – $140
Transportation	$270 – $450
Total:	$2,680 – $3,990

These expenses would amount to $32,160 – $47,880 per year. With an average annual income of about $45,000, low income families really need to pinch and sacrifice in certain areas in order to afford basic needs and necessities. 

What Are Challenges People with Low Income Face in Texas?

The Houston area has a large population of low-income residents, many of whom struggle to afford basic necessities such as adequate housing, quality food, dependable healthcare, and job opportunities. 

There is a Lack of Affordable Housing in Houston

One of the most pressing issues for low-income families in Houston is the lack of affordable housing. The city’s high housing costs, combined with low wages, make it difficult for many families to secure a safe and stable place to live. 

As mentioned above, an income of 45,000 dollars or below and while it is considered low income in Houston. This translates to about $4000 per month or less for all expenses. 

The table below shows the average housing costs in Houston for households of different sizes according to data from the Housing and Community Development Department in Houston. 

Individual	$1,100 – $1,500	–	–
Small Family	$1,500 – $2,000	$1,800 – $2,500	–
Big Family	$2,000 – $2,500	$2,500 – $3,500	$3,000 – $4,000

Many low-income families are forced to choose between paying for housing, food, healthcare, and other basic necessities, which can lead to financial stress and insecurity.

Access to Healthcare is Limited 

According to an estimation made by the Houston Health Department, the table below lists down common health care expenses for people living in Houston and the average payment to be made for healthcare insurance.

Doctor visit (without insurance)	$100 – $200
Prescription medication (without insurance)	$10 – $100
Dental check-up (without insurance)	$50 – $200
Health insurance premium (individual)	$200 – $400 per month
Health insurance premium (family)	$500 – $800 per month

Access to healthcare is another major concern for low-income families in Houston. The cost of healthcare can be prohibitively expensive, and many low-income families are uninsured or underinsured. 

This leaves them vulnerable to illnesses and injuries, and can result in devastating financial consequences.

There are Limited Benefits and Options for People with Low Income

Limited job opportunities are also a challenge for low-income individuals in Houston. Many low-wage jobs do not offer benefits such as healthcare and paid time off, which makes it difficult for workers to get by and support their families. 

Low-wage jobs in Houston are often found in industries such as retail, food service, hospitality, and manual labor. These jobs typically pay minimum wage or just above and offer limited benefits, such as paid time off or health insurance.

For workers with low-incomes, the lack of benefits can be a significant challenge. Without access to health insurance, paid time off, or other benefits, workers may struggle to make ends meet and provide for their families.

 This can result in increased stress and financial instability, which can negatively impact their overall quality of life.

In many cases, low-wage workers are also forced to work multiple jobs in order to make ends meet, which can be physically and mentally demanding. 

This can result in reduced job satisfaction and a lower quality of life, which can impact their overall wellbeing and productivity.

In addition, the lack of affordable child care options makes it challenging for low-income parents to find and maintain employment.

What Programs Are in Place to Assist Low Income Individuals? 

To address the needs of low-income residents in Houston, various programs and services have been established by local, state, and federal agencies. 

Programs that were founded to help low income individuals and families include the Supplemental Nutrition Assistance Program (SNAP), the Low-Income Home Energy Assistance Program (LIHEAP), and the Housing Choice Voucher Program.

Below, we will explain in depth what these programs are, who is eligible to file for assistance, and how to acquire said help. 

Supplemental Nutrition Assistance Program (SNAP)

The Supplemental Nutrition Assistance Program (SNAP) is a federal food assistance program that provides financial support to low-income individuals and families to purchase food. 

The program is run by the United States Department of Agriculture (USDA) and is designed to help tackle hunger and food shortage among low-income households.

SNAP is intended for households with limited income and resources, and eligibility is determined based on factors such as household size, income, and expenses. 

In general, households with incomes at or below 130% of the federal poverty line are eligible for SNAP.

Once an individual or family is determined to be eligible for SNAP, they will receive an Electronic Benefits Transfer (EBT) card, which works like a debit card. 

The EBT card can be used to purchase eligible food items at participating retailers, such as grocery stores, supermarkets, and farmers markets.

It’s important to note that SNAP benefits are intended to supplement, not replace, a household’s food budget.

The amount of assistance provided through SNAP is based on the household’s income and expenses, and is intended to help families purchase a basic diet.

Low-Income Home Energy Assistance Program (LIHEAP)

The Low-Income Home Energy Assistance Program (LIHEAP) is a federal assistance program designed to help low-income households with their home energy bills. 

The program is run by the Department of Health and Human Services (HHS) and provides financial assistance to households to help them meet the costs of heating or cooling their homes.

To be eligible for LIHEAP, individuals and families must fall under specific income and household size requirements. The program is intended for low-income households, and eligibility is based on factors such as income, expenses, and household size.

In general, households with incomes at or below 150% of the federal poverty line are eligible for LIHEAP.

To acquire LIHEAP assistance, individuals and families must apply through their local Department of Social Services office. The application process is similar to that of SNAP. 

Once an individual or family is determined to be eligible for LIHEAP, they will receive a one-time payment to help cover their home energy costs for the year.

This payment can be used to pay for heating or cooling costs, as well as other energy-related expenses, such as repairing or replacing broken heating or cooling systems.

The program is designed to help alleviate the burden of home energy costs for low-income households, and can provide a valuable source of support to those in need.

Housing Choice Voucher Program

The Housing Choice Voucher Program, commonly referred to as Section 8, is a federal program aimed at providing low-income households with rental subsidies. 

It is managed by the Department of Housing and Urban Development (HUD) with the goal of helping families access safe, affordable housing.

Eligibility for the Housing Choice Voucher Program is based on household size, income, and expenses. Typically, households with incomes below 50% of the median income for the area in which they reside qualify for the program.

To receive assistance, individuals and families must apply through their local housing authority. Proof of income and expenses must be submitted and a case worker will also do a personal interview to assess eligibility.

Once approved, eligible individuals and families can choose any pre-approved rental unit in the private market. The housing authority then provides the landlord with a rental subsidy on behalf of the tenant, who is responsible for paying the remaining balance.

It’s important to keep in mind that the Housing Choice Voucher Program is a limited resource and may have a waiting list. Additionally, the program’s funding is determined annually by Congress and may fluctuate.

How to Help Low Income Families in Houston 

Despite being a relatively affluent city, Houston has a significant population of low-income residents who struggle to afford basic necessities. 

Programs and services are available to help these individuals and families, but much work remains to be done to address the underlying causes of poverty and ensure that everyone has access to the resources they need to live a fulfilling and healthy life.

Here are some ways you can do your part to help!