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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
Before making assumptions, look at this: Austin: high income, low cost — a rare combo. And broadly, austin earns above the national median ($91,461 — and that's before you even look at taxes — vs $80,367) while keeping costs below average (index 89 vs 111). That combination is exceptionally rare — …
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.
Before making assumptions, look at this: Austin: high income, low cost — a rare combo. And broadly, austin earns above the national median ($91,461 — and that's before you even look at taxes — vs $80,367) while keeping costs below average (index 89 vs 111). That combination is exceptionally rare — only 40 of 288 cities share it (we double-checked this one).
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.
A closer look at Austin: the cost index of 89 breaks down to a Housing index of 89 (strongest category) and a Healthcare index of 98 (weakest). Median rent is $1,531/month — 19% below the national median — while household income sits at $91,461, meaning locals spend about 20% of income on rent. That's a healthy margin by any standard.
It's a strong position — but not without footnotes. Nationally, the 288 cities in our database average a cost index of 111, rent of $1,895/month, and household income of $80,367. The cities in this ranking significantly outperform those benchmarks. For anyone relocating from a high-cost market, this will feel like a raise.
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. Honestly, this is the kind of city that makes you wonder why more people aren't paying attention. The numbers are right there — rent that doesn't eat your paycheck, costs that actually leave room for a life. And yet it barely shows up in the national conversation about affordable places to live. Maybe that's a good thing. Maybe that's what keeps it affordable.
#1 Ranked: Austin, TX — cost index 89, rent $1,531/mo, income $91,461
Austin: high income, low cost — a rare combo
1 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 | San JoseCA | 188 | $3,222 | Details |
979,882 residents · Texas
Why Austin ranks #1: the numbers tell a clear story. At 89 on the cost index, residents save roughly 22% less than the typical American. Rent sits at $1,531/month — for better or worse — 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.
969,655 residents · California
Why San Jose ranks #2: the numbers tell a clear story. And with some exceptions, at 188 on the cost index, residents spend roughly 77% more than the typical American. Rent sits at $3,222/month while the median household pulls in $141,565/year. The Healthcare category is particularly strong at 118, though Housing (188) lags behind. Home prices average $1,435,993 — $968,623 above the national median (not adjusted for inflation, but still telling).
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 San Jose (ranked #2) has a cost index of 188 and rent of $3,222/mo — a 99-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.