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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
Chicago rent up 5% over the past year. And more often than not, 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.
Chicago rent up 5% over the past year. And more often than not, 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.
Premium market, smart picks: while the market trends above the national average, the gap between the most and least expensive cities here is wider than you'd think. Chicago at index 111 is the standout — offering meaningful savings without leaving a desirable market.
Chicago earns its position at #1 through a combination that's hard to replicate. And in practical terms, the 111 cost index sits 1 points below the national baseline, and the $75,134 — and that's before you even look at taxes — median income means purchasing power here is amplified by the low cost base. Homes list at $312,457 — $154,913 below the national median — a genuine ownership opportunity. On the cost side, Utilities leads the way at 102, while Housing trails at 127.
One more layer before the full breakdown: Nationally, the 288 cities in our database average a cost index of 112, rent of $1,895/month, and household income of $80,367. The cities in this ranking significantly outperform those benchmarks. That's a margin of safety most budgets don't have.
Bottom line: Chicago, IL 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 (though the trend is moving in the right direction).
#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
Dive into Chicago's numbers: cost index 111 — we had to double-check this one — (1 points below national average), rent $2,292/month, income $75,134, and a home price of $312,457. The city's cost profile isn't flat — Utilities is the cheapest category at 102, while Housing runs 127. As a major city with 2,664,452 residents, amenities and job markets are robust.
1,650,070 residents · Arizona
What does daily life actually cost in Phoenix? Start with the 24% rent-to-income ratio — that's the kind of margin that lets people build savings. And generally speaking, on the category level, Utilities (index 95) is where the real savings show up, while Housing (index 109) is the line item most likely to surprise newcomers. Income at $77,041 and homes at $407,665 round out a profile that ranks #2 for clear reasons.
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 Phoenix (ranked #2) has a cost index of 104 and rent of $1,556/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 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.