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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
Look, 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 5 points below national average. That's a rare combination shared by only 36 of th…
Austin earns above the national median ($91,461 vs $80,367) while keeping costs below average (index 107 vs 112). That combination is exceptionally rare — only 36 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.
Look, 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 5 points below national average. That's a rare combination shared by only 36 of the 288 cities we track.
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, Utilities (index 99) is where the real savings show up, while Housing (index 118) 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.
If you're ready to act on this, three things to do next: 1) Click into the city pages for the top 3 and check rent trends — direction matters more than the snapshot. 2) Run your income through the salary calculator for a personalized cost comparison. 3) Compare your top two picks head-to-head on our comparison page. The data is here; the decision is yours.
#1 Ranked: Austin, TX — cost index 107, 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 112
Data sourced from Census Bureau, Zillow, BLS, and Tax Foundation — current as of 2026
| Rank | City | Cost Index | Median Rent | |
|---|---|---|---|---|
| 1 | AustinTX | 107 | $1,531 | Details |
| 2 | PortlandOR | 111 | $1,710 | 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, Utilities is the standout at index 99, keeping costs manageable. The weak spot? Housing at 118. At a 20% rent-to-income ratio, there's genuine breathing room in the average household budget (more on that below).
630,498 residents · Oregon
Portland earns its position at #2 through a combination that's hard to replicate. The 111 cost index sits 1 points below the national baseline, and the $88,792 median income means purchasing power here is genuinely above average. Homes list at $524,251 — $56,881 above the national median, reflecting the metro premium. On the cost side, Utilities leads the way at 102, while Housing trails at 128.
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 107 and rent of $1,531/mo, while Portland (ranked #2) has a cost index of 111 and rent of $1,710/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.