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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
Nobody expects rock-bottom prices in Hawaii — but that doesn't mean all cities are equally expensive. Honolulu (index 135 — we had to double-check this one — , rent $2,548/mo) carves out real savings within a high-cost market. We analyzed 1 cities to find where your money goes furthest in 2026. The …
#1 Ranked: Honolulu — cost index 135, rent $2,548/mo, income $85,428
0 of 1 cities keep rent under 30% of $40K gross income
Data sourced from Census Bureau, Zillow, BLS, and Tax Foundation — current as of 2026
Nobody expects rock-bottom prices in Hawaii — but that doesn't mean all cities are equally expensive. Honolulu (index 135 — we had to double-check this one — , rent $2,548/mo) carves out real savings within a high-cost market. We analyzed 1 cities to find where your money goes furthest in 2026. The definition of value.
Real talk: Here's Honolulu by the numbers — and there's a lot to like. Cost index: 135. Rent: $2,548/month. Income: $85,428/year. Home price: $758,507. Population: 341,778. The strongest category is Utilities at 125; the most expensive is Housing at 189. Translate that rent to annual numbers, and residents are costing renters $7,836 more per year vs. the national median. That's not a marginal difference — it reshapes your monthly budget.
On a $40K salary, the key number is $1,000/month — that's 30% of gross, the standard affordability line. Honolulu ($2,548/mo, 76%) all clear that bar. After federal tax, FICA (7.65%), and state income tax, estimated take-home ranges from $27,972 to $27,972/year across these top picks.
What makes this tricky: Across Hawaii, the average cost of living index is 135 — 23 points above the national median. Known for the most isolated and expensive housing market in the US, the state offers 1 tracked cities with median rents averaging $2,548/month. That's $653 more than the national average of $1,895. That's an underrated factor in the decision.
Bottom line: Honolulu leads this ranking for clear, data-backed reasons — but the "best" city depends on your priorities. Click into any city below to see the full detail page with 12-month trend charts, profession-specific salary data, and a breakdown of all five cost categories. If you're seriously considering a move, use our salary calculator to model your specific income against these numbers.
341,778 residents · Hawaii
The #1 spot goes to Honolulu, and the breakdown explains why. And generally speaking, renters here pay $2,548/month — costing renters $7,836 more per year compared to the national average. Meanwhile, Utilities is the standout at index 125, keeping costs manageable. The weak spot? Housing at 189. The 36% rent-to-income ratio is a pressure point — for median earners, housing takes more than recommended.
| City | State Tax | Sales Tax | Property Tax | Est. Take-Home |
|---|---|---|---|---|
1Honolulu | 11% | 4.44% | 0.27% | $27,972 |
Honolulu ranks #1 in Hawaii for this analysis with a cost index of 135 and median income of $85,428.
Yes. On a $40K salary in Honolulu, rent would consume about 76% of your gross monthly income. Financial experts recommend keeping rent under 30%. It's tight — consider a roommate or nearby suburb.
Our cost of living index uses real Zillow rent data as the foundation, indexed to 100 (national median). Sub-categories (housing, food, transport, utilities, healthcare) are derived from the overall index with regional adjustments. Data is updated monthly.
City data is refreshed monthly from Census Bureau population estimates, Zillow rent and home price indices, BLS salary data, and Tax Foundation tax rates. Last updated: 2026.
The median 1-bedroom rent in Honolulu is $2,548/month as of 2026, based on Zillow's Observed Rent Index. This is $653 above the national median of $1,895/month.
After federal taxes, FICA (7.65%), and 11% state income tax, estimated take-home on $40K in Honolulu is approximately $27,972/year ($2,331/month). After median rent of $2,548/month, you'd have roughly $0/year for all other expenses.
The median home price in Honolulu is $758,507, which is 8.9× the local median income. Most median-income households would stretch to buy at this ratio. The national median home price is $467,370.
Hawaii has a 11% state income tax rate. Combined state and local sales tax averages 4.44%, and the effective property tax rate is 0.27%.
This ranking was generated using data current as of early 2026. Population and income data comes from the Census Bureau's American Community Survey (5-year estimates). Rent and home price data is from Zillow's monthly releases. Tax rates are from the Tax Foundation's 2025 edition. Rankings are refreshed monthly.