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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. On a $40K salary, 0 cities (0%) meet this threshold. That's a tough market. We ran the numbers on 5 cities in Oregon using 2026 census, rent, and salary data. Gresham comes out…
#1 Ranked: Gresham — cost index 93, rent $1,594/mo, income $73,608
0 of 5 cities keep rent under 30% of $40K
0 of 5 cities keep rent under 30% of $40K gross income
Data sourced from Census Bureau, Zillow, BLS, and Tax Foundation — current as of 2026
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. We ran the numbers on 5 cities in Oregon using 2026 census, rent, and salary data. Gresham comes out on top — here's the full ranking and analysis.
The data doesn't lie, but it does surprise: 0 of 5 cities keep rent under 30% of $40K. 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.
So, Gresham. Cost index of 93, rent at $1,594/month. It's lower than the national average. Median income is $73,608, which is below the national median. Standard stuff, really.
On a $40K salary, the key number is $1,000/month — that's 30% of gross, the standard affordability line. Gresham ($1,594/mo, 48%), Salem ($1,600/mo, 48%), Portland ($1,710/mo, 51%) all clear that bar. After federal tax, FICA (7.65%), and state income tax, estimated take-home ranges from $28,412 to $28,412/year across these top picks.
It's a strong position — but not without footnotes. The 5 cities we track in Oregon paint a clearly affordable picture. Average cost index: 102. Median rent: $1,752/month. Household income: $80,269. Oregon is known for Portland premium contrasting with inland bargains — and the data backs that reputation convincingly.
Bottom line: Gresham 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.
| City | State Tax | Sales Tax | Property Tax | Est. Take-Home |
|---|---|---|---|---|
1Gresham | 9.9% | 0% | 0.87% | $28,412 |
2Salem | 9.9% | 0% | 0.87% | $28,412 |
3Portland | 9.9% | 0% | 0.87% | $28,412 |
4Hillsboro | 9.9% | 0% | 0.87% | $28,412 |
5Eugene | 9.9% | 0% | 0.87% | $28,412 |
110,685 residents · Oregon
A closer look at Gresham: the cost index of 93 breaks down to a Housing index of 93 (strongest category) and a Healthcare index of 99 (weakest). Median rent is $1,594/month — 16% below the national median — while household income sits at $73,608, meaning locals spend about 26% of income on rent. That's within the recommended 30% threshold, though it doesn't leave much room.
177,432 residents · Oregon
What does daily life actually cost in Salem? Start with the 27% rent-to-income ratio — tight but manageable for most households. On the category level, Housing (index 93) is where the real savings show up, while Healthcare (index 99) is the line item most likely to surprise newcomers. Income at $71,900 and homes at $432,341 round out a profile that ranks #2 for clear reasons.
630,498 residents · Oregon
The #3 spot goes to Portland, and the breakdown explains why. Renters here pay $1,710/month — saving renters $2,220 per year compared to the national average. Meanwhile, Healthcare is the standout at index 100, keeping costs manageable. The weak spot? Healthcare at 100. At a 23% rent-to-income ratio, there's genuine breathing room in the average household budget. The definition of value.
107,730 residents · Oregon
What does daily life actually cost in Hillsboro? Start with the 22% rent-to-income ratio — that's the kind of margin that lets people build savings. On the category level, Healthcare (index 102) is where the real savings show up, while Housing (index 109) is the line item most likely to surprise newcomers. Income at $103,207 and homes at $516,726 round out a profile that ranks #4 for clear reasons.
177,899 residents · Oregon
What does daily life actually cost in Eugene? Start with the 37% rent-to-income ratio — stretched, especially for single earners. On the category level, Healthcare (index 103) is where the real savings show up, while Housing (index 116) is the line item most likely to surprise newcomers. Income at $63,836 and homes at $467,032 round out a profile that ranks #5 for clear reasons.
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.
Gresham ranks #1 in Oregon for this analysis with a cost index of 93 and median income of $73,608.
Yes. On a $40K salary in Gresham, rent would consume about 48% 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.
Gresham (ranked #1) has a cost index of 93 and rent of $1,594/mo, while Eugene (ranked #5) has a cost index of 116 and rent of $1,988/mo — a 23-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 Gresham is $1,594/month as of 2026, based on Zillow's Observed Rent Index. This is $301 below the national median of $1,895/month.
After federal taxes, FICA (7.65%), and 9.9% state income tax, estimated take-home on $40K in Gresham is approximately $28,412/year ($2,368/month). After median rent of $1,594/month, you'd have roughly $9,284/year for all other expenses.
The median home price in Gresham is $463,410, which is 6.3× the local median income. Most median-income households would stretch to buy at this ratio. The national median home price is $467,370.
Oregon has a 9.9% state income tax rate. Combined state and local sales tax averages 0%, and the effective property tax rate is 0.87%.
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.