Regional input-output tables (IOT) are increasingly used in economic impact assessment to support the design of sectoral policies. With the popularity of regional IOTs and increasing urbanization processes, there is a growing demand for sub-regional input-output modeling. Regional-county level analyses cannot account for the differences between urban economies and the specificities of their interconnections with other regions. However, estimating city-level IOTs is difficult due to the limited data available. This paper presents the steps of compiling a hybrid two-region IOT, based partly on a survey and partly on secondary data, covering the Pécs urban area and the rest of the country. The study concludes with an illustrative policy analysis assessing the sectoral development potential of the Pécs city region.