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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
The 30% rule — spending no more than 30% of gross income on housing — is the most widely cited benchmark for affordability. Nothing too surprising there. On a $40K salary, 0 cities (0%) meet this threshold. That's a tough market. We ran the numbers on 4 cities in Louisiana using 2026 census, rent, a…
#1 Ranked: Shreveport — cost index 85, rent $1,170/mo, income $48,465
0 of 4 cities keep rent under 30% of $40K
0 of 4 cities keep rent under 30% of $40K gross income
Data sourced from Census Bureau, Zillow, BLS, and Tax Foundation — current as of 2026
| Rank | City | Median Rent | Rent % of Gross | Cost Index | |
|---|---|---|---|---|---|
| 1 | Shreveport | $1,170 | 35% | 85 | Details |
| 2 | Lafayette | $1,279 | 38% | 90 | Details |
| 3 | Baton Rouge | $1,312 | 39% | 91 | Details |
| 4 | New Orleans | $1,625 | 49% | 97 | Details |
The 30% rule — spending no more than 30% of gross income on housing — is the most widely cited benchmark for affordability. Nothing too surprising there. On a $40K salary, 0 cities (0%) meet this threshold. That's a tough market. We ran the numbers on 4 cities in Louisiana using 2026 census, rent, and salary data. Shreveport comes out on top — here's the full ranking and analysis (not adjusted for inflation, but still telling).
Dive into Shreveport's numbers: cost index 85 (27 points below national average), rent $1,170/month, income $48,465, and a home price of $134,461. The city's cost profile isn't flat — Housing is the cheapest category at 62, while Healthcare runs 87. With 177,959 residents, it balances mid-size city convenience with manageable costs. The math checks out.
Straight up: on a $40K salary, the key number is $1,000/month — that's 30% of gross, the standard affordability line. It lines up with what you'd expect. Shreveport ($1,170/mo, 35%), Lafayette ($1,279/mo, 38%), Baton Rouge ($1,312/mo, 39%) all clear that bar. After federal tax, FICA (7.65%), and state income tax, estimated take-home ranges from $30,672 to $30,672/year across these top picks.
Real talk: the definition of value.
Look, that said, The 4 cities we track in Louisiana paint a clearly affordable picture. And broadly, that alone makes it worth considering. Average cost index: 91. Median rent: $1,347/month. Household income: $53,801. Louisiana is known for Cajun culture and below-average costs — and the data backs that reputation convincingly.
What to do with this data: use the ranking as a shortlist, then dig into the city profiles for trend lines and category breakdowns. The difference between #1 and #5 is often smaller than the difference between "good on paper" and "actually fits my life." Compare your top picks with our calculator to see real take-home numbers.
The 30% rule — spending no more than 30% of gross income on housing — is the most widely cited benchmark for affordability. On a $40K salary, 0 cities (0%) meet this threshold. That's a tough market.
Rent in #1-ranked Shreveport has increased from $1,138 to $1,170/mo over the past 12 months — a 3% increase. Rising costs may erode its top ranking over time.
177,959 residents · Louisiana
Real talk: So, Shreveport. Cost index of 85, rent at $1,170/month. It's lower than the national average. Median income is $48,465, which is below the national median. Nothing too surprising there.
121,467 residents · Louisiana
At $1,279/month for rent and a cost index of 90, Lafayette is pretty much what you'd expect from a mid-size city in this part of the country. And for many people, that alone makes it worth considering. Income is $61,454. You get the picture.
219,573 residents · Louisiana
In plain English: Why Baton Rouge ranks #3: the numbers tell a clear story. At 91 on the cost index, residents save roughly 21% less than the typical American. Rent sits at $1,312/month while the median household pulls in $49,944/year. The Housing category is particularly strong at 78, though Healthcare (94) lags behind. Home prices average $224,899 — $242,471 below the national median. That's not nothing.
364,136 residents · Louisiana
In plain English: the #4 spot goes to New Orleans, and the breakdown explains why. And as a general rule, pretty standard for this type of city. Renters here pay $1,625/month — we had to double-check this one — — saving renters $3,240 per year compared to the national average. Meanwhile, Utilities is the standout at index 89, making it one of the cheapest in the country for that category. The weak spot? Healthcare at 100. The 35% rent-to-income ratio is a pressure point — for median earners, housing takes more than recommended (not adjusted for inflation, but still telling). Below the radar, but not for long.
| City | State Tax | Sales Tax | Property Tax | Est. Take-Home |
|---|---|---|---|---|
1Shreveport | 4.25% | 9.55% | 0.51% | $30,672 |
2Lafayette | 4.25% | 9.55% | 0.51% | $30,672 |
3Baton Rouge | 4.25% | 9.55% | 0.51% | $30,672 |
4New Orleans | 4.25% | 9.55% | 0.51% | $30,672 |
We calculate what percentage of a $40K gross salary goes to median rent. Cities where rent consumes less of your paycheck rank higher. We also factor in estimated take-home pay after federal taxes, FICA (7.65%), and state income tax. All data is sourced from federal agencies and verified research institutions. Cost of living indices are normalized to 100 (national median) using Zillow rent as the primary signal, with sub-category adjustments derived from regional BLS price data. Rankings are updated monthly as new data is released.
Shreveport ranks #1 in Louisiana for this analysis with a cost index of 85 and median income of $48,465.
Yes. On a $40K salary in Shreveport, rent would consume about 35% 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.
Shreveport (ranked #1) has a cost index of 85 and rent of $1,170/mo, while New Orleans (ranked #4) has a cost index of 97 and rent of $1,625/mo — a 12-point difference in cost of living.
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 Shreveport is $1,170/month as of 2026, based on Zillow's Observed Rent Index. This is $725 below the national median of $1,895/month.
After federal taxes, FICA (7.65%), and 4.25% state income tax, estimated take-home on $40K in Shreveport is approximately $30,672/year ($2,556/month). After median rent of $1,170/month, you'd have roughly $16,632/year for all other expenses.
The median home price in Shreveport is $134,461, which is 2.8× the local median income. That's within the standard 3.5× affordability rule for most local earners. The national median home price is $467,370.
Louisiana has a 4.25% state income tax rate. Combined state and local sales tax averages 9.55%, and the effective property tax rate is 0.51%.
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.