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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
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…
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.
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.
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. And on balance, austin (index 89, rent $1,531); Washington (index 140, rent $2,406). Each city profile below links to the full detail page with 12-month trends, salary breakdowns, and cost category comparisons.
Here's Austin by the numbers — and there's a lot to like (and a little to watch). Cost index: 89. Rent: $1,531/month — for better or worse — . Income: $91,461/year. Home price: $500,627. Population: 979,882. The strongest category is Housing at 89; the most expensive is Healthcare at 98. Translate that rent to annual numbers, and residents are saving renters $4,368 per year vs. the national median. Financially, that's significant (and that gap widens if you factor in state taxes).
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.
#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 | WashingtonDC | 140 | $2,406 | Details |
979,882 residents · Texas
Austin comes in at #1. Rent is $1,531 a month. Household income is $91,461. The cost of living index is 89. No major red flags in that number.
678,972 residents · District of Columbia
Washington earns its position at #2 through a combination that's hard to replicate. The 140 cost index sits 29 points above the national baseline, and the $106,287 median income means purchasing power here is partially offset by higher costs. Homes list at $574,016 — $106,646 above the national median, reflecting the metro premium. On the cost side, Healthcare leads the way at 108, while Housing trails at 140. The math checks out.
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 Washington (ranked #2) has a cost index of 140 and rent of $2,406/mo — a 51-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.