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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. 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…
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. 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.
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); Charlotte (index 100, rent $1,705). Each city profile below links to the full detail page with 12-month trends, salary breakdowns, and cost category comparisons.
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.
No sugarcoating: the numbers are clear. The implications are even clearer: 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). It's fine. Not great, not bad. That combination is exceptionally rare — only 40 of 288 cities share it. Not flashy. Just effective.
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.
#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 | CharlotteNC | 100 | $1,705 | Details |
979,882 residents · Texas
Austin earns its position at #1 through a combination that's hard to replicate. The 89 cost index sits 22 points below the national baseline, and the $91,461 — whether that matters depends on your situation — median income means purchasing power here is genuinely above average. Homes list at $500,627 — $33,257 above the national median, reflecting the metro premium. On the cost side, Housing leads the way at 89, while Healthcare trails at 98.
911,311 residents · North Carolina
Here's Charlotte by the numbers — and there's a lot to like (and a little to watch). Cost index: 100. Rent: $1,705/month — this is the part where it gets real — . Income: $78,438/year. Home price: $393,846. Population: 911,311. The strongest category is Healthcare at 100; the most expensive is Healthcare at 100. Translate that rent to annual numbers, and residents are saving renters $2,280 per year vs. the national median. Year over year, that savings rate is portfolio-grade.
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 Charlotte (ranked #2) has a cost index of 100 and rent of $1,705/mo — a 11-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.