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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
If you remember nothing else from this page, remember this: Austin: high income, low cost — a rare combo. And more often than not, austin earns above the national median ($91,461 — for better or worse — vs $80,367) while keeping costs below average (index 89 vs 111). That combination is exceptional…
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.
If you remember nothing else from this page, remember this: Austin: high income, low cost — a rare combo. And more often than not, austin earns above the national median ($91,461 — for better or worse — 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 number worth sharing with anyone who says affordable cities can't have good jobs.
Austin breaks the usual trade-off between income and cost of living. That's more or less in line with the region. 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.
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 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. 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.
Zooming out, 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. That's not something you see often in the data.
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. And depending on your situation, 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 (and that gap widens if you factor in state taxes). Not flashy. Just effective.
#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
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 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 (and that gap widens if you factor in state taxes).
547,239 residents · Arizona
Why Tucson ranks #2: the numbers tell a clear story. And broadly, at 82 on the cost index, residents save roughly 29% less than the typical American. Rent sits at $1,399/month while the median household pulls in $54,546/year. The Housing category is particularly strong at 82, though Healthcare (96) lags behind. Home prices average $321,688 — $145,682 below the national median (and that gap widens if you factor in state taxes). One to watch.
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 Tucson (ranked #2) has a cost index of 82 and rent of $1,399/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.