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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
The income-cost paradox: Austin pays $91,461 — 14% above the national median — while costing just 89 on the index. Only 40 of 288 tracked cities share this unusual profile. Here's the full 2-city ranking for 2026.
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.
The income-cost paradox: Austin pays $91,461 — 14% above the national median — while costing just 89 on the index. Only 40 of 288 tracked cities share this unusual profile. Here's the full 2-city ranking for 2026.
Why Austin ranks #1: the numbers tell a clear story. And depending on your situation, at 89 on the cost index, residents save roughly 22% less than the typical American. Rent sits at $1,531/month — which, honestly, is lower than you'd expect here — 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 (and that gap widens if you factor in state taxes).
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); Nashville (index 103, rent $1,772). Each city profile below links to the full detail page with 12-month trends, salary breakdowns, and cost category comparisons.
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.
And here's the trade-off: 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 most of the time, the cities in this ranking significantly outperform those benchmarks. From a pure purchasing-power standpoint, this is elite.
Bottom line: Austin, TX leads this ranking for clear, data-backed reasons — but the "best" city depends on your priorities. And for many people, 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 (that's pre-tax, of course).
#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 | NashvilleTN | 103 | $1,772 | 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.
687,788 residents · Tennessee
In plain English: a closer look at Nashville: the cost index of 103 — which, honestly, is lower than you'd expect here — breaks down to a Healthcare index of 101 (strongest category) and a Housing index of 103 (weakest). Median rent is $1,772/month — 6% below the national median — while household income sits at $75,197, meaning locals spend about 28% of income on rent. That's within the recommended 30% threshold, though it doesn't leave much room.
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 Nashville (ranked #2) has a cost index of 103 and rent of $1,772/mo — a 14-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.