Last verified: June 2026 · OPM 2026 General Schedule locality tables
Houston's federal presence is anchored by NASA's Johnson Space Center, the single largest federal employer in the locality and the home of human spaceflight and mission control. Around it sit the federal courthouse for the Southern District of Texas downtown, the Michael E. DeBakey VA Medical Center, the Houston branch of the Dallas Federal Reserve, and a major Coast Guard presence at the Port of Houston. The 2026 OPM locality rate is 35.00%.
The headline draw is real: Texas levies no state income tax and no local income tax, so a 35% locality adjustment goes further on take-home than the same number on the coast. The trade-off is property tax, which the state leans on instead and which runs among the highest in the nation, so the relocation math here turns on the property tax bill, not the income tax line.
Houston's relocation decision is shaped by two things: a federal map centered on the Johnson Space Center and the downtown core, and a tax structure that trades the income tax line for a high property tax bill. The real questions are which corner of a very large, car-oriented metro your duty station sits in, and what the property tax actually runs at the address you choose.
This guide is organized around the pillars that shape the decision here: where the workforce lives along METRORail and the Park & Ride network, the commute math, Texas's no-income-tax and property-tax picture, and the homebuyer assistance that can help clear the down payment.
Houston's federal footprint is led by human spaceflight and spread across health, courts, and the port. The clusters below map to where federal households actually land.
The Texas Medical Center. The largest medical complex in the world sits on the Red Line near Rice, combining the DeBakey VA, academic medicine, and a vast hospital and research workforce in one district south of downtown.
The Clear Lake aerospace corner. Clear Lake and the Bay Area communities southeast of the city grew up around the Johnson Space Center and the aerospace contractors, with the University of Houston-Clear Lake feeding the pipeline.
The 2026 locality adjustment for the Houston-The Woodlands locality area is 35.00%, which OPM applies on top of base General Schedule pay for every federal civilian whose duty station falls inside the boundary. With no Texas income tax, more of that gross reaches take-home than in a comparable income-tax state.
The table below shows approximate Step 1 figures: the true General Schedule base, then the Houston total after the locality adjustment. These are starting-step numbers, and your exact pay depends on grade, step, and the current OPM tables, so confirm before any financial decision.
| GS Grade (Step 1) | Approx. Base | With 35.00% Locality |
|---|---|---|
| GS-9 | ~$52,700 | ~$71,200 |
| GS-11 | ~$63,800 | ~$86,100 |
| GS-12 | ~$76,500 | ~$103,200 |
| GS-13 | ~$90,900 | ~$122,700 |
| GS-14 | ~$107,400 | ~$145,100 |
| GS-15 | ~$126,400 | ~$170,600 |
Federal, university, and transitioning veteran households spread across a very large metro, clustering by their duty station and what they want from a commute. The inner loop offers walkable rail access, while the suburbs trade a longer drive or Park & Ride for top schools and more house.
Large multi-family property groups across the metro offer Preferred Employer Programs for federal civil servants and credentialed university students. Typical structural benefits include waived security deposits, waived application and administrative fees, and lease clauses that allow penalty-free breaks for reassignment, relocation, or program changes.
Ask a property manager directly whether a federal GS offer letter or active university ID qualifies for a PEP rate before signing.
The Johnson Space Center gives Houston a federal identity no other metro has, and it shapes a whole submarket. The Clear Lake and Bay Area communities southeast of the city grew up around the center and the aerospace contractors, with the University of Houston-Clear Lake feeding the talent pipeline.
For a federal aerospace or engineering career, this corner of the metro is the natural landing spot, with waterfront access on Galveston Bay and a far shorter commute than the long-haul suburbs. It is exactly the kind of duty-station-to-neighborhood match this guide is built to map.
Houston is car-oriented, but the METRORail Red Line and the Park & Ride express network make a transit commute realistic into downtown and the Med Center for federal employees through the federal transit benefit.
Texas levies no state income tax and no local income tax, so wages, side income, and investment gains are free of state tax, the headline reason many households move here. The state funds local services through property and sales taxes instead, so property tax is the number that matters, and effective rates run among the highest in the nation, climbing higher in suburban Municipal Utility Districts. A homestead exemption and a 10% annual cap on appraised value protect primary residences. Confirm current figures with a professional.
First-time homebuyer program availability and funding levels change frequently. The TDHCA and TSAHC programs and the Houston Homebuyer Assistance Program each operate with limited funding cycles, eligibility caps that shift, and purchase price limits that vary by program window. Verify current status with the official program site before factoring assistance into a purchase budget.
Houston has a deep stack of free parks and cultural infrastructure that functions as quiet income, anchored by its bayou greenways and a free-admission museum culture. Most newcomers underuse it.
Houston's family infrastructure is a major draw, with strong suburban school districts, world-class healthcare, and an affordable cost base relative to the coast. Quality varies widely across the inner loop and the suburbs.
Houston's federal base, the DeBakey VA, the Coast Guard presence at the port, and the energy and aerospace industries make it a strong landing spot for transitioning service members. Non-competitive hiring authorities like the Veterans' Recruitment Appointment (VRA) and the Veterans Employment Opportunities Act (VEOA) streamline the path from active service into a GS career, with the 35% locality adjustment immediately applied.
Texas is also one of the most veteran-friendly states for ownership: disabled veterans qualify for property tax exemptions that reach a full exemption at a 100% disability rating, a substantial benefit in a high property-tax state, and TSAHC's Homes for Texas Heroes program is open to veterans with down payment assistance. Rice, the University of Houston, and UH-Clear Lake maintain student-veteran offices with Yellow Ribbon integration.
The Houston-The Woodlands, TX locality pay area sits at 35.00% for 2026, per the OPM General Schedule locality tables.
It applies to every federal civilian GS employee whose official duty station falls inside the boundary. Because Texas has no state income tax, more of that gross pay reaches take-home than in a comparable income-tax state.
No. Texas has no state income tax and no local income tax, so your wages, side income, and investment gains are free of state tax.
The state funds local services through property and sales taxes instead, which is why property tax is the cost that matters most here.
High. With no income tax, Texas leans on property tax, and effective rates run among the highest in the nation, around 1.6% and climbing higher in suburban Municipal Utility Districts that can push some neighborhoods well above 2.5%.
A homestead exemption and a 10% annual cap on appraised value protect primary residences, so always file your homestead exemption and check the specific rate for any address. Confirm with a professional.
Eligible federal employees may receive a monthly tax-free transit benefit, capped at the federal pre-tax commuter limit, that covers METRORail, local buses, and the Park & Ride express network from the suburbs.
The RideMETRO card, which replaced the Q card, now takes contactless credit and debit and gives free transfers within three hours.
It depends on the duty station.
Inner loop: Downtown and Midtown by the federal courthouse on the Red Line; the Med Center and Museum District near Rice and the DeBakey VA; the Heights and Montrose.
NASA: Clear Lake by the Johnson Space Center.
Suburbs: Sugar Land, The Woodlands, Pearland, and Katy for top schools and Park & Ride.
Texas runs two statewide systems plus a city program:
Veterans are generally exempt from the first-time requirement. Verify current funding on the official program site.
Rice University and the University of Houston lead, with Texas Southern, UH-Clear Lake near the Johnson Space Center, and UH-Downtown rounding out the public roster.
The Texas Medical Center adds major academic institutions including Baylor College of Medicine and UTHealth. Several maintain student-veteran offices with Yellow Ribbon integration.
Transitioning service members can use non-competitive federal hiring authorities to move into civilian roles.
Houston's federal base, the DeBakey VA, the Coast Guard at the port, and the aerospace sector make it a strong landing spot, and Texas adds property tax exemptions for disabled veterans.
HomeScoop maps your federal locality pay against actual rents and prices across the inner loop, the Clear Lake aerospace corner, and the Houston suburbs. We lay the school district lines over each address, factor the real Texas property tax, including the Municipal Utility District wrinkle, into the household budget, and show the real METRORail and Park & Ride commute from each option to your duty station or campus. Intelligence layer, not a listings platform. We calculate, compare, and surface, so you arrive at the lease signing or the offer with the math already done.
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