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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
Look, Denver breaks the usual trade-off between income and cost of living. Most affordable cities pay less — but Denver delivers a median household income of $91,681 — for better or worse — (14% above the national median) while keeping costs 5 points below national average. That's a rare combinatio…
Look, Denver breaks the usual trade-off between income and cost of living. Most affordable cities pay less — but Denver delivers a median household income of $91,681 — for better or worse — (14% above the national median) while keeping costs 5 points below national average. That's a rare combination shared by only 40 of the 288 cities we track (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, Healthcare is the standout at index 101, keeping costs manageable. The weak spot? Housing at 106. 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 106, rent $1,818); Sacramento (index 117, rent $2,006). Each city profile below links to the full detail page with 12-month trends, salary breakdowns, and cost category comparisons.
You could spend hours on Zillow. Or you could start with this number: Denver: high income, low cost — a rare combo. Denver earns above the national median ($91,681 vs $80,367) while keeping costs below average (index 106 vs 111). That combination is exceptionally rare — only 40 of 288 cities share it. Over thirty years of homeownership, the property tax savings alone are staggering.
Now, the part that complicates the narrative: 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. 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 106, rent $1,818/mo, income $91,681
Denver: 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 | DenverCO | 106 | $1,818 | Details |
| 2 | SacramentoCA | 117 | $2,006 | Details |
716,577 residents · Colorado
A closer look at Denver: the cost index of 106 breaks down to a Healthcare index of 101 (strongest category) and a Housing index of 106 (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, Healthcare is the standout at index 103, keeping costs manageable. The weak spot? Housing at 117. 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 106 and rent of $1,818/mo, while Sacramento (ranked #2) has a cost index of 117 and rent of $2,006/mo — a 11-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.