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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
Portland breaks the usual trade-off between income and cost of living. Most affordable cities pay less — but Portland delivers a median household income of $88,792 (10% above the national median) while keeping costs 11 points below national average. That's a rare combination shared by only 40 of the…
Portland breaks the usual trade-off between income and cost of living. Most affordable cities pay less — but Portland delivers a median household income of $88,792 (10% above the national median) while keeping costs 11 points below national average. That's a rare combination shared by only 40 of the 288 cities we track.
Portland: high income, low cost — a rare combo. Portland earns above the national median ($88,792 vs $80,367) while keeping costs below average (index 100 vs 111). That combination is exceptionally rare — only 40 of 288 cities share it.
Why Portland ranks #1: the numbers tell a clear story. At 100 on the cost index, residents save roughly 11% less than the typical American. Rent sits at $1,710/month while the median household pulls in $88,792/year. The Healthcare category is particularly strong at 100, though Healthcare (100) lags behind. Home prices average $524,251 — $56,881 above the national median.
Tax burden isn't just income tax. We combine three layers: state income tax (9.9% in Portland), combined state+local sales tax (0%), and effective property tax (0.87%). At 9.9% state income tax, the real differentiator becomes sales and property tax rates. On a $75,000 — which, honestly, is lower than you'd expect here — salary, the estimated take-home in #1 Portland is $50,285/year (that's pre-tax, of course).
What's equally notable: Across Oregon, the average cost of living index is 102 — 9 points below the national median. Known for Portland premium contrasting with inland bargains, the state offers 5 tracked cities with median rents averaging $1,752/month. That's $143 less than the national average of $1,895. For anyone relocating from a high-cost market, this will feel like a raise.
Bottom line: Portland 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.
#1 Ranked: Portland — cost index 100, rent $1,710/mo, income $88,792
Portland: high income, low cost — a rare combo
4 of 5 cities come in below the national cost-of-living average of 111
Data sourced from Census Bureau, Zillow, BLS, and Tax Foundation — current as of 2026
630,498 residents · Oregon
Portland earns its position at #1 through a combination that's hard to replicate. The 100 cost index sits 11 points below the national baseline, and the $88,792 median income means purchasing power here is genuinely above average. Homes list at $524,251 — $56,881 above the national median, reflecting the metro premium. On the cost side, Healthcare leads the way at 100, while Healthcare trails at 100.
177,899 residents · Oregon
Why Eugene ranks #2: the numbers tell a clear story. At 116 on the cost index, residents spend roughly 5% more than the typical American. Rent sits at $1,988/month while the median household pulls in $63,836/year. The Healthcare category is particularly strong at 103, though Housing (116) lags behind. Home prices average $467,032 — $338 below the national median.
177,432 residents · Oregon
Dive into Salem's numbers: cost index 93 (18 points below national average), rent $1,600/month, income $71,900, and a home price of $432,341. The city's cost profile isn't flat — Housing is the cheapest category at 93, while Healthcare runs 99. With 177,432 residents, it balances mid-size city convenience with manageable costs.
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.
107,730 residents · Oregon
Here's Hillsboro by the numbers — and there's a lot to like (and a little to watch). Cost index: 109. Rent: $1,869/month — for better or worse — . Income: $103,207/year. Home price: $516,726. Population: 107,730. The strongest category is Healthcare at 102; the most expensive is Housing at 109. Translate that rent to annual numbers, and residents are saving renters $312 per year vs. the national median. Financially, that's significant (not adjusted for inflation, but still telling).
| City | State Tax | Sales Tax | Property Tax | Est. Take-Home |
|---|---|---|---|---|
1Portland | 9.9% | 0% | 0.87% | $58,622 |
2Eugene | 9.9% | 0% | 0.87% | $58,622 |
3Salem | 9.9% | 0% | 0.87% | $58,622 |
4Gresham | 9.9% | 0% | 0.87% | $58,622 |
5Hillsboro | 9.9% | 0% | 0.87% | $58,622 |
Cities are ranked by effective property tax rate within Oregon. Property taxes can vary significantly between municipalities even within the same state due to local levies, school districts, and assessment practices. 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.
Portland ranks #1 in Oregon for this analysis with a cost index of 100 and median income of $88,792.
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.
Portland (ranked #1) has a cost index of 100 and rent of $1,710/mo, while Hillsboro (ranked #5) has a cost index of 109 and rent of $1,869/mo — a 9-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 Portland is $1,710/month as of 2026, based on Zillow's Observed Rent Index. This is $185 below the national median of $1,895/month.
The median home price in Portland is $524,251, which is 5.9× 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.