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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
Austin breaks the usual trade-off between income and cost of living. And depending on your situation, most affordable cities pay less — but Austin delivers a median household income of $91,461 (14% above the national median) while keeping costs 22 points below national average. That's a rare combina…
Austin earns above the national median ($91,461 vs $80,367) while keeping costs below average (index 89 vs 111). That combination is exceptionally rare — only 40 of 288 cities share it.
Rent in #1-ranked Austin has decreased from $1,578 to $1,531/mo over the past 12 months — a 3% decrease. The downward trend makes it an even stronger pick.
Austin breaks the usual trade-off between income and cost of living. And depending on your situation, most affordable cities pay less — but Austin delivers a median household income of $91,461 (14% above the national median) while keeping costs 22 points below national average. That's a rare combination shared by only 40 of the 288 cities we track.
Austin: high income, low cost — a rare combo. Austin earns above the national median ($91,461 vs $80,367) while keeping costs below average (index 89 vs 111). That combination is exceptionally rare — only 40 of 288 cities share it.
What does daily life actually cost in Austin? Start with the 20% rent-to-income ratio — that's the kind of margin that lets people build savings. On the category level, Housing (index 89) is where the real savings show up, while Healthcare (index 98) is the line item most likely to surprise newcomers. Income at $91,461 and homes at $500,627 round out a profile that ranks #1 for clear reasons.
The ranking uses a composite of 2026 data from Census Bureau population/income surveys, Zillow rent and home price indices, BLS salary benchmarks, and Tax Foundation tax rates. Austin (index 89, rent $1,531); Albuquerque (index 85, rent $1,457). Each city profile below links to the full detail page with 12-month trends, salary breakdowns, and cost category comparisons.
Straight up: What's equally notable: Nationally, the 288 cities in our database average a cost index of 111 — worth pausing on — , rent of $1,895/month, and household income of $80,367. The cities in this ranking significantly outperform those benchmarks. If you've ever felt priced out, the numbers here offer a different path.
Bottom line: Austin, TX 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: Austin, TX — cost index 89, rent $1,531/mo, income $91,461
Austin: high income, low cost — a rare combo
2 of 2 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
| Rank | City | Cost Index | Median Rent | |
|---|---|---|---|---|
| 1 | AustinTX | 89 | $1,531 | Details |
| 2 | AlbuquerqueNM | 85 | $1,457 | Details |
979,882 residents · Texas
The #1 spot goes to Austin, and the breakdown explains why. Renters here pay $1,531/month — saving renters $4,368 per year compared to the national average. Meanwhile, Housing is the standout at index 89, making it one of the cheapest in the country for that category. The weak spot? Healthcare at 98. At a 20% rent-to-income ratio, there's genuine breathing room in the average household budget.
560,274 residents · New Mexico
The #2 spot goes to Albuquerque, and the breakdown explains why. Renters here pay $1,457/month — saving renters $5,256 per year compared to the national average. Meanwhile, Housing is the standout at index 85, making it one of the cheapest in the country for that category. The weak spot? Healthcare at 97. A 27% rent-to-income ratio keeps most households inside the safe zone.
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.
Austin (ranked #1) has a cost index of 89 and rent of $1,531/mo, while Albuquerque (ranked #2) has a cost index of 85 and rent of $1,457/mo — a 4-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 Austin is $1,531/month as of 2026, based on Zillow's Observed Rent Index. This is $364 below the national median of $1,895/month.
The median home price in Austin is $500,627, which is 5.5× the local median income. Most median-income households would stretch to buy at this ratio. The national median home price is $467,370.
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.