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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
The numbers are clear: 2 of 2 cities beat the national cost-of-living benchmark of 112. Chicago stands out at 111 on the index, with rent of $2,292/month and household income of $75,134. Assembled from 2026 Census, Zillow, and BLS data.
The numbers are clear: 2 of 2 cities beat the national cost-of-living benchmark of 112. Chicago stands out at 111 on the index, with rent of $2,292/month and household income of $75,134. Assembled from 2026 Census, Zillow, and BLS data.
Straight up: 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. Chicago (index 111, rent $2,292); Memphis (index 86, rent $1,234). Each city profile below links to the full detail page with 12-month trends, salary breakdowns, and cost category comparisons.
At $2,292/month for rent and a cost index of 111, Chicago is pretty much what you'd expect from a larger city in this part of the country. And in most cases, income is $75,134. That alone makes it worth considering.
If you only look at rent, it's perfect. Zoom out and it's complicated. In Chicago, the housing index sits at 127 — above average and worth factoring in.
Chicago rent up 5% over the past year. Rent in #1-ranked Chicago has increased from $2,179 to $2,292/mo over the past 12 months — a 5% increase. Rising costs may erode its top ranking over time. That's about what we'd expect given the state context.
What to do with this data: use the ranking as a shortlist, then dig into the city profiles for trend lines and category breakdowns. The difference between #1 and #5 is often smaller than the difference between "good on paper" and "actually fits my life." Compare your top picks with our calculator to see real take-home numbers.
#1 Ranked: Chicago, IL — cost index 111, rent $2,292/mo, income $75,134
Chicago rent up 5% over the past year
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
2,664,452 residents · Illinois
Why Chicago ranks #1: the numbers tell a clear story. At 111 on the cost index, residents save roughly 1% less than the typical American. Rent sits at $2,292/month while the median household pulls in $75,134/year. The Utilities category is particularly strong at 102, though Housing (127) lags behind. Home prices average $312,457 — $154,913 below the national median.
618,639 residents · Tennessee
The #2 spot goes to Memphis, and the breakdown explains why. Renters here pay $1,234/month — saving renters $7,932 per year compared to the national average. Meanwhile, Housing is the standout at index 66, making it one of the cheapest in the country for that category. The weak spot? Healthcare at 89. A 29% rent-to-income ratio keeps most households inside the safe zone. That's not nothing.
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.
Chicago (ranked #1) has a cost index of 111 and rent of $2,292/mo, while Memphis (ranked #2) has a cost index of 86 and rent of $1,234/mo — a 25-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 Chicago is $2,292/month as of 2026, based on Zillow's Observed Rent Index. This is $397 above the national median of $1,895/month.
The median home price in Chicago is $312,457, which is 4.2× the local median income. It's on the edge of affordability for median-income households. 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.