What 3d modelling/texturing software works along with Unreal Engine?

Blender definitely has the best price tag (free) but there’s also a cheap version of Houdini called Houdini Indie. Check it out here.

And here’s a few videos about using Houdini with Unreal to give you an idea of the workflow:

Houdini at GDC2015 | In-game FX

Houdini at GDC2015 | Artist Built Tools for UE4

SideFX GDC Reel