Rice (\$$$) vs USC Marshall (\$$)

Congratulations Akhil!

Something to point out right away is that both cities will require driving. Houston a bit less so than LA as it has Metro going to the University of Houston, but both are spread out and will require both you and your wife to drive. i would say that your wife is probably more likely to have to drive than you while shopping and dealing with the kid transportation, etc. So, if she is not a dedicated driver yet, make sure she gets plenty of practice and a license back home. Driving in the US is infinitely easier than in India so that will be easier but getting some decent practice first hand will be best. Adding a bit more about LA, it is very diverse, and you will definitely feel not out of place, but it is a lonely city because you have to drive to get anywhere and meeting up with friends often involves 45 mins in a car, as does going for groceries

As to the schools - I have no idea .... I would say the MBA programs are probably equally good with USC having a much stronger name recognition. US news ranks them as #25 and #33, which is not that much of a difference. It is noise. Jones has a good Houston/Texas foothold though is about half the size of Marshall (so slightly different feel).

I have copied some of the employment data from both and they are really close. Since your future path is not very defined yet, I think the choice is based on money, location, and other non-care aspects. It would be great if you and your wife (or just her) could visit the schools, locations, and see what it involves. USC is in a bad part of town, which is not uncomon so are many other top schools but that sometimes surprises people. If you can't visit, at least do a Google Street view and do a virtual drive by and see how you feel about the vibe of both cities. It is not just 2 years of school, you are highly likely to stay in LA or Houston after graduation as well, so make sure you like both places.

P.S. If having to pick blindly, and money was a consideration, I would pick Jones.