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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
Frankly, Nebraska is a genuine bargain: 2 of the 2 cities in this ranking come in below the national cost-of-living average. Lincoln leads at an index of 94 with rent at just $1,293/month — 32% less than the $1,895 national median. Here are the numbers, sourced from federal data updated in 2026.
294,757 residents · Nebraska
Dive into Lincoln's numbers: cost index 94 (18 points below national average), rent $1,293/month, income $69,991, and a home price of $285,359. The city's cost profile isn't flat — Housing is the cheapest category at 84, while Healthcare runs 96. With 294,757 residents, it balances mid-size city convenience with manageable costs.
483,335 residents · Nebraska
Why Omaha ranks #2: the numbers tell a clear story. It lines up with what you'd expect. At 96 on the cost index, residents save roughly 16% less than the typical American. Rent sits at $1,403/month while the median household pulls in $72,708/year. The Utilities category is particularly strong at 88, though Healthcare (99) lags behind. Home prices average $288,850 — $178,520 below the national median.
#1 Ranked: Lincoln — cost index 94, rent $1,293/mo, income $69,991
2 of 2 cities come in below the national cost-of-living average of 112
Data sourced from Census Bureau, Zillow, BLS, and Tax Foundation — current as of 2026
Frankly, Nebraska is a genuine bargain: 2 of the 2 cities in this ranking come in below the national cost-of-living average. Lincoln leads at an index of 94 with rent at just $1,293/month — 32% less than the $1,895 national median. Here are the numbers, sourced from federal data updated in 2026.
What does daily life actually cost in Lincoln? Start with the 22% rent-to-income ratio — that's the kind of margin that lets people build savings. On the category level, Housing (index 84) is where the real savings show up, while Healthcare (index 96) is the line item most likely to surprise newcomers. Income at $69,991 and homes at $285,359 round out a profile that ranks #1 for clear reasons. If you've been scrolling through listings in high-cost metros and feeling defeated, look at these numbers again. Seriously. The difference between renting here and renting in a major coastal city could literally fund a retirement account. That's not hyperbole — run the math yourself. A thousand dollars a month saved, compounded over a decade, is a down payment on a house. In this city, that math actually works.
The counter-argument is worth hearing: Across Nebraska, the average cost of living index is 95 — 17 points below the national median. Known for flyover affordability hiding in plain sight, the state offers 2 tracked cities with median rents averaging $1,348/month. That's $547 less than the national average of $1,895. This is the kind of number that should get your attention.
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.
Cities are ranked by median 1-bedroom rent from Zillow's Observed Rent Index (ZORI). ZORI reflects the median rent across all listed units, not just new leases, providing a more stable and representative figure. 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.
Lincoln ranks #1 in Nebraska for this analysis with a cost index of 94 and median income of $69,991.
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.
Lincoln (ranked #1) has a cost index of 94 and rent of $1,293/mo, while Omaha (ranked #2) has a cost index of 96 and rent of $1,403/mo — a 2-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 Lincoln is $1,293/month as of 2026, based on Zillow's Observed Rent Index. This is $602 below the national median of $1,895/month.
The median home price in Lincoln is $285,359, which is 4.1× the local median income. It's on the edge of affordability for median-income households. The national median home price is $467,370.
Nebraska has a 5.84% state income tax rate. Combined state and local sales tax averages 6.94%, and the effective property tax rate is 1.54%.
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.