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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
Forget what you've heard — the data paints a different picture. Austin: high income, low cost — a rare combo. Austin earns above the national median ($91,461 — though some people might weigh that differently — vs $80,367) while keeping costs below average (index 89 vs 111). That combination is exce…
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.
Forget what you've heard — the data paints a different picture. Austin: high income, low cost — a rare combo. Austin earns above the national median ($91,461 — though some people might weigh that differently — vs $80,367) while keeping costs below average (index 89 vs 111). That combination is exceptionally rare — only 40 of 288 cities share it. That's a red flag worth investigating further.
The income-cost paradox: Austin pays $91,461 — 14% above the national median — while costing just 89 on the index. That tracks. Only 40 of 288 tracked cities share this unusual profile. Here's the full 2-city ranking for 2026.
Dive into Austin's numbers: cost index 89 — though some people might weigh that differently — (22 points below national average), rent $1,531/month, income $91,461, and a home price of $500,627. The city's cost profile isn't flat — Housing is the cheapest category at 89, while Healthcare runs 98. As a major city with 979,882 residents, amenities and job markets are robust.
But the numbers also reveal: Nationally, the 288 cities in our database average a cost index of 111, rent of $1,895/month, and household income of $80,367. And in most cases, the cities in this ranking significantly outperform those benchmarks. If two cities have the same income, this cost gap is the tiebreaker (that's pre-tax, of course). The math checks out.
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. There's an argument to be made — and I think the data supports it — that the cities getting all the attention right now are exactly the wrong places to move. The spotlight drives migration, migration drives demand, demand drives costs, and eventually the value proposition disappears. Meanwhile, cities like this one keep quietly being affordable, and the people who find them early are the ones who benefit most.
#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 | MilwaukeeWI | 82 | $1,398 | Details |
979,882 residents · Texas
Why Austin ranks #1: the numbers tell a clear story. And for the typical household, at 89 on the cost index, residents save roughly 22% less than the typical American. Rent sits at $1,531/month while the median household pulls in $91,461/year. The Housing category is particularly strong at 89, though Healthcare (98) lags behind. Home prices average $500,627 — $33,257 above the national median.
561,385 residents · Wisconsin
The #2 spot goes to Milwaukee, and the breakdown explains why. Renters here pay $1,398/month — saving renters $5,964 per year compared to the national average. Meanwhile, Housing is the standout at index 82, making it one of the cheapest in the country for that category. The weak spot? Healthcare at 96. The 32% rent-to-income ratio is a pressure point — for median earners, housing takes more than recommended.
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 Milwaukee (ranked #2) has a cost index of 82 and rent of $1,398/mo — a 7-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.