Best Places to Start a Business in Texas

Small Business
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Best Places to Start a Business in Texas

Texas has weathered the country’s economic turbulence well, with record-breaking annual job growth, and locals chalk it up to a business-friendly attitude and community mentality.

The Lone Star State typically receives the nation’s fourth-highest amount of venture capital, says Walter Ulrich, CEO of Houston Technology Center, a nonprofit technology incubator and accelerator.

Recipe for success

Ulrich finds that ironic. The top three states for venture capital — California, New York and Massachusetts — are, Ulrich says, known as unfriendly to big business. “Why would you create a new business in a state where, once it becomes a big business, the state is unfriendly to it?” Ulrich asks. He champions Texas, saying with its lower cost of living and lower taxes, the state encourages business success.

As a city on the forefront of technology, Houston is especially driving the state’s strong economy. “In 10 years, when people tell you about technology centers, Houston will be at the same level or ahead of Silicon Valley and Route 128 in Boston,” Ulrich says.

The Houston area is also a hotspot for breakthroughs in life sciences (due to the world’s largest medical complex), aerospace (at NASA’s Johnson Space Center) and nanotechnology (due to Nobel Prize-winning discoveries in nanotechnology at Rice University).

Ulrich says Texans — especially Houstonians — share a spirit of volunteerism and community, not to mention a strong work ethic. The Houston Technology Center is successful in large part thanks to its many volunteers and local investors who support Texas entrepreneurs, and Ulrich says this is also the case at a growing number of other tech incubators and accelerators in Houston.

NerdWallet’s analysis

To find the best places to start a business in Texas, NerdWallet analyzed 220 places, each with a population of at least 10,000. We calculated the overall score for every location based on the city’s business climate and economic health using data from the U.S. Census Bureau. Learn more about our methodology at the end of this article.

Key takeaways

Houston dominates. The Houston metroplex took the majority of the top 10 spots. Five of the top 10 cities are in the Greater Houston area (Webster, Stafford, Katy, Deer Park, Texas City). Dallas suburbs took two of the top spots.

Austin isn’t so hot. Although the hip Austin area has been the darling of the press in recent years, no places in the area made this list — possibly due to the rising cost of living or because the energy industry lacks a strong presence when compared with Houston and Dallas. The San Antonio area also didn’t show up on this list.

Best places to start a business in Texas

1. Addison

The Dallas suburb of Addison is its own incorporated town, and it has the second-highest median annual income in the top 10 ($50,280). It also has the second-highest number of businesses per 100 people (over 26) and a low unemployment rate of 3.9%. The town is under 5 square miles but has over 22 hotels and more than 170 restaurants. The community is home to Addison TreeHouse, a resource-filled co-working space for entrepreneurs founded by the town, and the Dallas Entrepreneur Center. Addison is also home to the headquarters of cosmetic company Mary Kay, plus the app development company Bottle Rocket.

2. Webster

Webster is less than 25 miles from downtown Houston, but it has a strong economy of its own. The city has the highest percentage of businesses with paid employees in the top 10, at 53%, plus a low median monthly housing cost of $973. Only a few miles from the NASA Johnson Space Center, the town is key to the aerospace industry and is a popular place for NASA employees to live. Another growth industry in Webster is the medical field — the Clear Lake Regional Medical Center, which opened in the 1970s, and the Bay Area Regional Medical Center, which opened in 2014, have led some to call the city Texas’ “medical center of the south” (with Houston’s as the north).

3. Stafford

In the Houston metropolitan area, Stafford has the third-highest number of businesses per 100 people (15.26) in the top 10 list. Stafford, a former agricultural community, has grown significantly — especially after property taxes were eliminated for residents and business owners in 1995. Over 2,700 businesses are located here, including the headquarters of Seamar Divers, a subsea construction and inspection company, and General Technologies Inc., an equipment manufacturer.

4. Katy

Katy started as a small Houston suburb, but over the years has grown into a city of its own. This family-friendly city is tops among our top 10 for most businesses — a whopping 6,907. It also has the highest number of businesses per 100 people (over 46). Additionally, Katy is tied with Temple for second place among the top 10 for the lowest unemployment rate at 3.7%. The city serves as worldwide headquarters for Igloo, and the Katy Mills outlet mall brings shoppers from across the Houston area. The Katy Area Economic Development Council supports business growth in this area. Katy is also close to the Houston Energy Corridor, a district packed with energy companies.

5. Farmers Branch

Farmers Branch has the second-highest number of businesses, 4,158, in the top 10. This inner Dallas suburb also comes in second place in the top 10 for the largest number of businesses with paid employees (over 1,700). Many companies have their corporate headquarters here, including Taco Bueno, a fast-casual food chain, and Ironclad, a performance wear company.  

6. Port Arthur

Port Arthur has the second-highest population in the top 10 (nearly 54,200), but boasts the highest total revenue of businesses in the top 10 at $28.6 billion. There are nearly 3,000 businesses in this coastal town about 90 miles east of Houston. The Port of Port Arthur is a large part of the local economy and expansion projects aim to make it a bigger international cargo shipping center. Lamar State College-Port Arthur has a Small Business Development Center to help entrepreneurs. The Port Arthur Economic Development Corp. also helps support local business growth.

7. Texas City

About 40 miles southeast of downtown Houston, this deep-sea port city is known for heavy industry. The Port of Texas City is one of the nation’s largest ports, making it a shipping hotspot. The town also has some of the state’s largest petrochemical manufacturing centers and refineries, such those operated by Marathon Petroleum Corp. and Valero. Texas City has the second-highest total business revenue in the top 10 list, coming in at $23.4 billion. It also came in second for average revenue per business ($8.9 million). Of the top 10 communities, median housing costs here are the third-most affordable at $818 a month.

8. Temple

Temple, with nearly 68,000 residents, is the largest city by population in the top 10 list. It’s tied with Katy for the second-lowest unemployment rate in the top 10. Temple also has the third-highest number of businesses, at over 3,900. Located in central Texas, the town is nearly 70 miles north of Austin and 125 miles south of Dallas. Temple College is based here, and the city features a growing medical complex bolstered by Scott & White Memorial Hospital. Several major company headquarters are located here, including Wilsonart Americas, a company that produces countertops and walls, and McLane, a supply chain services company. Temple is 30 miles from Fort Hood, so members of the military also help support the town’s economy.

9. Brenham

Located about midway between Houston and Austin, the humble city of Brenham boasts the top 10’s lowest unemployment rate — an impressive 2.8%. The city also has the top 10’s second-most affordable median monthly housing cost at a reasonable $767. Brenham, known as an ice cream mecca, is home to Blue Bell Creameries, which is working to restart production after a listeria-related recall. The city is also home to a Blinn University campus, a two-year college, which has a Small Business Development Center offering free assistance to local businesses.

10. Deer Park

Located near the site where Texas won its independence at the Battle of San Jacinto, Deer Park is the self-proclaimed “birthplace of Texas.” Near the Houston Ship Channel and in the Houston metroplex, Deer Park has the highest median annual income among the top 10 — nearly $52,000. It also has the third-highest total revenue of businesses (nearly $17 billion) of the top 10. Shell has a manufacturing site in Deer Park that employs over 1,600 people. Chemical companies Lubrizol and Dow also have locations in Deer Park.

Best places to start a business in Texas

Rank City Population Number of businesses Average revenue per business Businesses with paid employees Businesses per 100 people Unemployment rate Score
1 Addison 14,114 3,722 $2,984,634 49.70% 26.37 3.9% 61.43
2 Webster 10,695 1,468 $2,331,239 52.86% 13.73 4.4% 54.33
3 Stafford 17,840 2,723 $2,530,727 38.49% 15.26 3.9% 49.34
4 Katy 14,891 6,907 $537,273 15.35% 46.38 3.7% 48.83
5 Farmers Branch 29,405 4,158 $3,609,105 40.93% 14.14 6.4% 48.80
6 Port Arthur 54,193 2,990 $9,562,438 21.74% 5.52 7.4% 47.95
7 Texas City 45,363 2,631 $8,880,059 21.74% 5.80 7.2% 46.36
8 Temple 67,669 3,916 $2,795,853 37.46% 5.79 3.7% 45.82
9 Brenham 15,896 1,656 $1,952,998 34.60% 10.42 2.8% 45.69
10 Deer Park 32,517 2,354 $7,218,652 21.92% 7.24 5.4% 45.64
11 Fredericksburg 10,649 2,908 $359,850 24.42% 27.31 3.4% 44.69
12 Baytown 73,043 4,774 $8,753,160 18.89% 6.54 7.4% 44.67
13 Freeport 12,105 1,069 $7,260,652 25.54% 8.83 8.6% 44.66
14 Bellaire 17,223 2,940 $586,971 29.83% 17.07 2.5% 43.68
15 Henderson 13,715 1,444 $611,602 30.40% 10.53 1.4% 43.48
16 Tomball 10,898 2,688 $512,655 23.07% 24.67 3.3% 43.36
17 Kilgore 13,731 1,929 $1,059,820 28.98% 14.05 3.1% 43.35
18 Southlake 27,006 4,023 $1,348,490 33.18% 14.90 3.3% 42.72
19 Beaumont 117,478 9,937 $3,406,356 33.29% 8.46 6.6% 42.42
20 Borger 13,141 712 $1,879,836 36.24% 5.42 5.0% 42.14
21 Waco 126,406 7,912 $2,443,498 36.02% 6.26 5.4% 41.94
22 Conroe 59,429 4,796 $2,166,244 32.03% 8.07 4.0% 41.90
23 Vernon 10,874 805 $839,494 35.78% 7.40 3.7% 41.81
24 Richardson 101,528 12,940 $2,793,901 28.04% 12.75 5.5% 41.64
25 Round Rock 104,070 8,137 $5,275,862 22.58% 7.82 6.1% 40.45
26 Snyder 11,274 955 $731,917 29.53% 8.47 3.0% 40.33
27 Humble 15,286 4,750 $824,636 23.45% 31.07 8.0% 40.28
28 Leon Valley 10,429 1,158 $708,424 32.38% 11.10 4.2% 40.26
29 Irving 220,856 18,614 $4,458,515 24.44% 8.43 6.3% 40.24
30 Clute 11,232 686 $3,942,337 26.38% 6.11 5.8% 40.10
31 Palestine 18,691 2,435 $756,108 30.76% 13.03 4.9% 40.03
32 Kerrville 22,481 3,799 $481,688 27.38% 16.90 4.7% 39.88
33 Grapevine 47,688 5,193 $1,504,346 28.08% 10.89 4.0% 39.86
34 Richmond 11,724 3,831 $165,910 8.59% 32.68 3.0% 39.75
35 Brownwood 19,145 1,814 $771,787 26.41% 9.48 2.6% 39.57
36 Longview 81,435 9,905 $1,338,840 26.65% 12.16 4.6% 39.26
37 Canyon 13,601 1,338 $362,729 23.32% 9.84 1.4% 39.14
38 Sweetwater 10,816 728 $946,368 36.26% 6.73 6.2% 39.04
39 Midland 115,903 13,791 $1,294,330 22.86% 11.90 3.2% 38.93
40 Tyler 98,335 11,044 $1,222,847 28.21% 11.23 4.7% 38.93
41 Levelland 13,664 1,239 $1,194,850 27.36% 9.07 4.5% 38.40
42 Wichita Falls 104,402 8,729 $954,659 29.02% 8.36 4.2% 38.26
43 Paris 25,119 3,338 $1,300,793 26.99% 13.29 6.0% 38.15
44 Mount Pleasant 15,924 2,049 $1,309,894 24.30% 12.87 4.9% 37.77
45 Andrews 11,712 1,035 $854,484 22.03% 8.84 3.1% 37.75
46 Sugar Land 80,755 10,990 $1,414,044 21.20% 13.61 3.7% 37.69
47 Orange 18,789 2,376 $1,145,262 21.76% 12.65 4.6% 37.54
48 Bay City 17,575 1,271 $400,763 35.80% 7.23 6.2% 37.48
49 The Woodlands 101,423 7,065 $1,346,465 22.87% 6.97 3.0% 37.40
50 Lufkin 35,505 4,360 $826,188 28.33% 12.28 5.8% 37.26
51 Alice 19,325 2,095 $1,045,324 21.10% 10.84 3.4% 37.24
52 Greenville 25,729 2,227 $2,016,464 31.21% 8.66 7.5% 37.23
53 Angleton 18,906 1,219 $693,336 31.26% 6.45 5.0% 37.13
54 Mineral Wells 16,980 1,555 $645,409 29.07% 9.16 5.0% 37.10
55 Lubbock 233,162 19,350 $1,002,281 28.04% 8.30 4.7% 37.03
56 Pampa 18,183 1,497 $940,952 28.06% 8.23 5.2% 37.03
57 San Marcos 48,291 3,071 $1,262,201 33.12% 6.36 5.8% 37.00
58 Harlingen 65,296 5,680 $756,519 25.55% 8.70 3.8% 36.95
59 Abilene 119,721 10,332 $888,310 25.87% 8.63 4.0% 36.94
60 Texarkana 36,851 4,034 $1,317,710 28.93% 10.95 6.8% 36.91
61 Plano 266,740 31,253 $1,846,148 20.13% 11.72 4.3% 36.85
62 El Campo 11,554 1,536 $741,860 23.31% 13.29 4.6% 36.84
63 Athens 12,767 1,998 $579,849 23.17% 15.65 5.2% 36.72
64 Marshall 24,173 3,190 $791,080 25.99% 13.20 5.8% 36.69
65 Terrell 16,027 1,609 $1,172,342 31.88% 10.04 7.0% 36.63
66 New Braunfels 59,620 6,117 $719,288 24.98% 10.26 3.9% 36.54
67 Plainview 22,125 1,874 $856,935 28.50% 8.47 5.4% 36.50
68 Hurst 37,822 3,453 $635,391 28.67% 9.13 5.3% 36.43
69 McAllen 132,796 15,161 $712,972 24.15% 11.42 4.5% 36.35
70 Nacogdoches 33,466 3,637 $974,067 27.25% 10.87 5.9% 36.29
71 Odessa 104,223 8,965 $836,724 22.82% 8.60 3.7% 36.21
72 Weatherford 25,971 3,829 $618,735 20.84% 14.74 4.5% 36.19
73 Amarillo 193,153 18,729 $960,898 21.82% 9.70 3.7% 36.12
74 Sulphur Springs 15,589 2,084 $1,263,943 22.89% 13.37 6.0% 36.09
75 Belton 18,855 1,788 $748,063 25.56% 9.48 4.4% 36.08
76 Georgetown 50,380 5,031 $529,016 24.49% 9.99 3.9% 36.03
77 Victoria 63,571 6,128 $782,919 26.93% 9.64 5.4% 35.91
78 Coppell 39,551 4,327 $1,370,796 18.05% 10.94 3.4% 35.78
79 Nederland 17,530 1,438 $469,020 25.66% 8.20 4.8% 35.75
80 Benbrook 21,655 2,258 $484,485 21.57% 10.43 3.7% 35.71
81 Stephenville 17,833 2,796 $599,186 21.24% 15.68 5.3% 35.64
82 Houston 2,134,707 219,284 $2,345,084 21.97% 10.27 6.3% 35.52
83 Big Spring 27,470 1,708 $739,920 24.53% 6.22 4.1% 35.48
84 Alvin 24,708 1,886 $2,212,162 21.16% 7.63 5.1% 35.44
85 Aldine 14,893 1,506 $1,532,823 29.22% 10.11 7.4% 35.41
86 Cleburne 29,677 3,079 $784,160 25.95% 10.38 5.6% 35.41
87 Port Neches 12,931 754 $354,954 26.39% 5.83 4.3% 35.39
88 Corpus Christi 308,993 25,997 $1,419,973 23.91% 8.41 5.1% 35.35
89 Wells Branch 12,148 1,078 $1,113,010 27.64% 8.87 5.8% 35.35
90 Bedford 47,727 5,509 $686,387 21.44% 11.54 4.4% 35.23
91 Gainesville 16,047 2,316 $644,513 25.04% 14.43 6.5% 35.21
92 Jacksonville 14,625 2,043 $593,535 20.75% 13.97 4.9% 35.14
93 Seguin 25,848 2,694 $907,403 25.02% 10.42 5.7% 35.09
94 Huntsville 39,159 2,960 $432,097 21.32% 7.56 2.7% 35.06
95 Lake Jackson 27,107 2,336 $601,381 22.82% 8.62 4.1% 35.05
96 Austin 836,800 80,570 $1,587,100 22.82% 9.63 5.4% 34.87
97 La Porte 34,127 2,390 $2,606,802 20.96% 7.00 5.8% 34.80
98 Beeville 13,068 1,413 $530,248 22.22% 10.81 5.0% 34.44
99 Carrollton 122,613 13,615 $1,362,097 21.02% 11.10 5.1% 34.44
100 Colleyville 23,465 4,017 $307,725 16.98% 17.12 3.4% 34.36
101 Corsicana 23,928 2,092 $874,756 31.41% 8.74 7.9% 34.30
102 West University Place 15,033 1,790 $197,747 14.80% 11.91 2.5% 34.27
103 Rockwall 38,958 4,705 $485,471 20.51% 12.08 4.0% 34.26
104 Hereford 15,312 1,327 $506,973 18.46% 8.67 3.0% 34.25
105 Galveston 48,178 4,071 $1,191,304 27.27% 8.45 7.0% 34.19
106 Lumberton 12,024 934 $423,581 20.02% 7.77 3.7% 34.14
107 Azle 10,752 1,731 $363,270 13.23% 16.10 3.6% 34.01
108 Keller 40,872 7,528 $200,016 13.60% 18.42 3.6% 33.96
109 Robinson 10,813 962 $243,336 18.92% 8.90 2.6% 33.94
110 Lakeway 12,194 1,710 $275,076 20.18% 14.02 4.4% 33.91
111 San Angelo 94,812 8,490 $767,877 21.15% 8.95 4.6% 33.91
112 Waxahachie 30,412 2,956 $782,030 22.29% 9.72 4.9% 33.80
113 Sherman 38,805 4,109 $972,886 25.38% 10.59 7.2% 33.44
114 Friendswood 36,375 3,560 $318,427 18.82% 9.79 3.8% 33.44
115 Dallas 1,222,167 121,276 $1,527,722 21.79% 9.92 6.3% 33.43
116 Universal City 18,844 1,845 $290,947 18.10% 9.79 3.1% 33.18
117 Lewisville 97,462 8,625 $1,189,011 19.27% 8.85 4.6% 33.16
118 Seagoville 15,099 1,004 $353,119 18.63% 6.65 2.6% 32.93
119 Flower Mound 66,523 6,193 $392,369 20.07% 9.31 3.6% 32.86
120 Gatesville 15,836 884 $449,346 20.02% 5.58 3.5% 32.80
121 Schertz 33,758 1,919 $849,200 23.29% 5.68 4.8% 32.64
122 Laredo 240,524 20,520 $498,365 19.91% 8.53 4.0% 32.59
123 Rosenberg 31,908 2,481 $673,723 19.63% 7.78 3.9% 32.56
124 Eagle Pass 26,875 3,758 $370,570 17.27% 13.98 5.4% 32.52
125 Bryan 77,139 6,404 $716,955 25.12% 8.30 6.4% 32.49
126 Vidor 10,769 1,199 $587,606 20.77% 11.13 6.2% 32.49
127 Robstown 11,578 1,499 $333,681 22.75% 12.95 7.4% 32.36
128 College Station 96,000 5,377 $582,832 22.76% 5.60 4.6% 32.36
129 Ennis 18,631 2,195 $796,785 20.50% 11.78 6.1% 32.34
130 Denison 22,697 2,423 $729,199 19.85% 10.68 6.2% 31.95
131 Rio Grande City 13,905 2,417 $178,984 8.94% 17.38 4.2% 31.93
132 University Park 23,460 3,549 $323,152 12.45% 15.13 3.9% 31.73
133 Live Oak 13,750 929 $507,205 21.96% 6.76 5.0% 31.60
134 San Antonio 1,359,033 109,186 $1,066,931 19.09% 8.03 5.5% 31.48
135 Converse 19,023 1,444 $647,310 18.14% 7.59 4.1% 31.40
136 Lockhart 12,864 1,054 $325,941 18.79% 8.19 4.4% 31.28
137 Frisco 123,663 11,598 $1,015,721 14.80% 9.38 3.9% 31.21
138 El Paso 660,795 52,897 $864,466 17.67% 8.01 5.0% 31.19
139 Fort Worth 761,092 54,911 $1,549,351 18.97% 7.21 6.2% 31.06
140 Cinco Ranch 17,863 1,259 $152,834 13.74% 7.05 2.6% 30.99
141 North Richland Hills 64,677 6,080 $753,587 15.71% 9.40 4.5% 30.96
142 Copperas Cove 32,869 1,340 $332,899 26.27% 4.08 6.0% 30.89
143 Denton 117,895 8,494 $1,169,310 22.23% 7.20 6.8% 30.87
144 Dickinson 18,879 1,904 $472,116 17.59% 10.09 5.6% 30.82
145 Taylor 15,734 907 $659,558 29.99% 5.76 8.5% 30.73
146 Burleson 38,165 4,096 $406,048 18.48% 10.73 5.7% 30.72
147 Haltom City 42,906 3,468 $580,967 20.76% 8.08 5.9% 30.71
148 McKinney 137,643 11,378 $775,520 13.71% 8.27 3.0% 30.71
149 Forest Hill 12,523 975 $689,936 22.15% 7.79 6.2% 30.54
150 Pecan Grove 15,769 1,145 $168,129 14.67% 7.26 3.1% 30.41
151 Highland Village 15,364 1,865 $209,025 15.17% 12.14 4.2% 30.21
152 Allen 87,213 7,362 $415,793 16.87% 8.44 4.4% 30.14
153 Raymondville 11,220 749 $256,550 14.29% 6.68 3.7% 30.14
154 Saginaw 20,347 1,330 $1,200,089 19.92% 6.54 6.0% 30.12
155 New Territory 16,188 1,165 $96,760 12.96% 7.20 2.4% 30.09
156 Weslaco 36,273 4,948 $341,901 15.00% 13.64 6.4% 30.02
157 Duncanville 39,000 3,356 $307,344 19.87% 8.61 5.5% 30.01
158 Hidalgo 12,544 1,825 $234,533 13.42% 14.55 5.5% 29.85
159 Pearland 94,098 8,129 $333,815 14.85% 8.64 3.6% 29.85
160 Uvalde 15,952 1,941 $389,487 18.44% 12.17 7.5% 29.71
161 Harker Heights 27,163 1,372 $299,152 20.04% 5.05 4.6% 29.71
162 West Odessa 22,156 1,516 $587,933 17.61% 6.84 6.4% 29.70
163 Del Rio 35,578 3,235 $344,302 20.31% 9.09 7.1% 29.58
164 Mansfield 57,529 5,524 $516,064 15.26% 9.60 4.5% 29.53
165 Killeen 131,237 5,124 $958,264 25.90% 3.90 7.4% 29.49
166 Forney 15,356 2,544 $463,028 15.06% 16.57 6.9% 29.38
167 Edinburg 77,415 9,430 $567,848 15.47% 12.18 6.8% 29.35
168 Arlington 371,267 31,355 $1,118,944 17.58% 8.45 6.7% 29.24
169 League City 86,136 6,104 $290,871 15.66% 7.09 4.1% 29.19
170 Cedar Park 54,874 4,841 $364,829 17.95% 8.82 5.6% 29.00
171 Prosper 10,969 846 $240,707 13.24% 7.71 2.8% 28.88
172 Pasadena 150,785 10,365 $1,588,718 15.85% 6.87 6.9% 28.80
173 Crowley 13,287 1,554 $261,459 11.45% 11.70 4.5% 28.77
174 Balch Springs 24,294 1,703 $494,476 16.50% 7.01 4.8% 28.76
175 Mission 78,707 11,524 $197,149 6.99% 14.64 4.4% 28.75
176 Brownsville 177,795 14,645 $417,625 18.55% 8.24 6.6% 28.65
177 White Settlement 16,372 1,300 $661,378 15.00% 7.94 5.5% 28.56
178 Mesquite 141,201 10,237 $704,046 16.51% 7.25 5.6% 28.50
179 Midlothian 18,666 2,182 $1,013,391 12.56% 11.69 6.6% 27.93
180 Port Lavaca 12,279 1,092 $1,444,248 14.47% 8.89 8.1% 27.85
181 Grand Prairie 178,195 12,329 $1,198,096 16.65% 6.92 6.8% 27.82
182 Missouri City 68,244 7,828 $235,687 12.43% 11.47 5.0% 27.80
183 Red Oak 10,898 1,261 $147,432 9.12% 11.57 4.5% 27.54
184 South Houston 17,157 1,559 $332,627 20.91% 9.09 8.5% 27.31
185 Rowlett 56,856 5,778 $288,948 13.69% 10.16 5.3% 27.31
186 Wylie 42,384 3,612 $408,873 13.76% 8.52 4.9% 27.24
187 Canyon Lake 21,108 2,196 $125,210 10.29% 10.40 5.1% 27.06
188 Spring 55,458 6,993 $224,729 10.93% 12.61 5.7% 27.02
189 Alamo 18,658 1,844 $278,823 11.55% 9.88 5.9% 26.93
190 Pflugerville 50,127 3,294 $256,943 13.42% 6.57 4.7% 26.71
191 Cedar Hill 45,505 4,167 $305,760 15.69% 9.16 6.4% 26.68
192 DeSoto 50,014 5,014 $478,271 14.04% 10.03 6.6% 26.63
193 La Marque 14,766 989 $406,966 18.50% 6.70 7.8% 26.58
194 Corinth 20,126 1,764 $589,540 11.85% 8.76 5.2% 26.57
195 Donna 16,010 2,687 $117,108 7.03% 16.78 7.1% 26.30
196 Watauga 23,798 2,095 $206,401 13.60% 8.80 5.8% 26.27
197 San Benito 24,347 2,239 $559,271 11.30% 9.20 6.8% 26.19
198 Garland 230,177 19,732 $693,062 15.31% 8.57 7.2% 26.12
199 Pharr 71,634 6,116 $388,133 15.03% 8.54 7.2% 26.08
200 Mercedes 15,999 2,278 $285,893 12.64% 14.24 8.8% 26.01
201 Santa Fe 12,409 762 $243,371 19.29% 6.14 8.3% 25.75
202 Brushy Creek 23,908 1,495 $75,725 13.71% 6.25 5.2% 25.53
203 Galena Park 11,003 684 $1,525,651 10.53% 6.22 6.9% 25.37
204 Leander 28,281 1,926 $242,629 14.69% 6.81 5.9% 25.29
205 Kyle 29,396 2,008 $184,083 9.76% 6.83 4.6% 24.69
206 Cibolo 20,564 1,286 $164,609 7.70% 6.25 3.6% 24.51
207 Lancaster 37,087 2,842 $596,448 15.10% 7.66 8.1% 24.34
208 Atascocita 66,879 3,025 $213,380 8.13% 4.52 3.9% 24.03
209 Groves 15,954 1,168 $240,782 15.58% 7.32 9.0% 23.95
210 The Colony 37,614 3,293 $187,445 9.41% 8.75 6.4% 23.34
211 Sachse 20,930 1,979 $51,221 4.65% 9.46 4.4% 23.33
212 San Juan 34,556 3,142 $140,407 8.34% 9.09 6.8% 23.24
213 Channelview 38,919 2,385 $1,303,197 13.79% 6.13 9.4% 23.06
214 Horizon City 17,736 708 $198,753 8.33% 3.99 4.8% 23.01
215 Socorro 32,227 2,786 $133,173 8.18% 8.64 7.2% 22.70
216 Jacinto City 10,649 846 $548,625 22.10% 7.94 12.5% 22.09
217 Little Elm 27,966 1,912 $112,306 7.11% 6.84 6.8% 20.18
218 Cloverleaf 24,150 1,558 $144,087 8.99% 6.45 8.8% 19.49
219 Glenn Heights 11,459 647 $108,652 6.18% 5.65 7.0% 19.24
220 Fresno 19,467 1,272 $182,091 1.10% 6.53 5.6% 18.34

Methodology


NerdWallet calculated the score for each location using the following criteria:

Business climate, 65% of the overall score, is based on three metrics from the U.S. Census Bureau’s Survey of Business Owners.

  • Average revenue of businesses is 20% of the score. A higher average contributed to a higher score.
  • Percentage of businesses with paid employees is 25% of the score. A higher percentage contributed to a higher score.
  • Businesses per 100 people is 20% of the score. A higher number contributed to a higher score.

Local economic health, 35% of the overall score, is based on three metrics from the U.S. Census Bureau’s American Community Survey.

  • Median annual income is 10% of the score. A higher median income contributed to a higher score.
  • Median annual housing costs are 10% of the score. Lower median costs contributed to a higher score.
  • Unemployment rate for residents over 16 years old is 15% of the score. A lower rate contributed to a higher score.

NerdWallet staff writer Emily Starbuck Crone contributed to this article.

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Houston, Texas, skyline via iStock.