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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
Look, Let's be honest: these cities aren't cheap. But within that premium market, there are cities where your dollar stretches meaningfully further. Denver proves it with a cost index of 113 — for better or worse — , and we've ranked all 2 contenders to help you find the best deal in an expensive la…
Look, Let's be honest: these cities aren't cheap. But within that premium market, there are cities where your dollar stretches meaningfully further. Denver proves it with a cost index of 113 — for better or worse — , and we've ranked all 2 contenders to help you find the best deal in an expensive landscape (not adjusted for inflation, but still telling).
The #1 spot goes to Denver, and the breakdown explains why. Renters here pay $1,818/month — saving renters $924 per year compared to the national average. Meanwhile, Utilities is the standout at index 104, keeping costs manageable. The weak spot? Housing at 133. At a 24% rent-to-income ratio, there's genuine breathing room in the average household budget.
Look, 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. Denver (index 113, rent $1,818); Sacramento (index 114, rent $2,006). Each city profile below links to the full detail page with 12-month trends, salary breakdowns, and cost category comparisons.
Now, the part that complicates the narrative: 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 challenge those benchmarks. For anyone relocating from a high-cost market, this will feel like a raise.
Bottom line: Denver, CO 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: Denver, CO — cost index 113, rent $1,818/mo, income $91,681
0 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
| Rank | City | Cost Index | Median Rent | |
|---|---|---|---|---|
| 1 | DenverCO | 113 | $1,818 | Details |
| 2 | SacramentoCA | 114 | $2,006 | Details |
716,577 residents · Colorado
A closer look at Denver: the cost index of 113 breaks down to a Utilities index of 104 (strongest category) and a Housing index of 133 (weakest). And in practical terms, median rent is $1,818/month — 4% below the national median — while household income sits at $91,681, meaning locals spend about 24% of income on rent. That's a healthy margin by any standard.
526,384 residents · California
The #2 spot goes to Sacramento, and the breakdown explains why. Renters here pay $2,006/month — costing renters $1,332 more per year compared to the national average. Meanwhile, Utilities is the standout at index 105, keeping costs manageable. The weak spot? Housing at 134. A 29% rent-to-income ratio keeps most households inside the safe zone.
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.
Denver (ranked #1) has a cost index of 113 and rent of $1,818/mo, while Sacramento (ranked #2) has a cost index of 114 and rent of $2,006/mo — a 1-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 Denver is $1,818/month as of 2026, based on Zillow's Observed Rent Index. This is $77 below the national median of $1,895/month.
The median home price in Denver is $530,920, which is 5.8× 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.