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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
Real talk: these cities are a genuine bargain: 2 of the 2 cities in this ranking come in below the national cost-of-living average. And as far as the data shows, no major red flags in that number. Houston leads at an index of 90 with rent at just $1,542/month — 19% less than the $1,895 national medi…
Real talk: these cities are a genuine bargain: 2 of the 2 cities in this ranking come in below the national cost-of-living average. And as far as the data shows, no major red flags in that number. Houston leads at an index of 90 with rent at just $1,542/month — 19% less than the $1,895 national median. Here are the numbers, sourced from federal data updated in 2026.
Here's Houston by the numbers — and there's a lot to like (and a little to watch). Cost index: 90. Rent: $1,542/month. Income: $62,894/year. Home price: $261,976. Population: 2,314,157. The strongest category is Housing at 90; the most expensive is Healthcare at 98. Translate that rent to annual numbers, and residents are saving renters $4,236 per year vs. the national median. That's a number worth sharing with anyone who says affordable cities can't have good jobs.
Real talk: (Tangentially — this is the kind of city where you can actually build equity on a median salary, which is increasingly rare.)
Pair that with the housing data, and the pattern sharpens. And from what we can tell, that tracks. For context: the typical American city has a cost index of 111 — whether that matters depends on your situation — , pays $1,895/month in rent, and earns $80,367 per household. The top-ranked cities here tell a dramatically different story — one that's worth exploring city by city.
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: Houston, TX — cost index 90, rent $1,542/mo, income $62,894
2 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
2,314,157 residents · Texas
A closer look at Houston: the cost index of 90 breaks down to a Housing index of 90 (strongest category) and a Healthcare index of 98 (weakest). Median rent is $1,542/month — 19% below the national median — while household income sits at $62,894, meaning locals spend about 29% of income on rent. That's within the recommended 30% threshold, though it doesn't leave much room.
510,823 residents · Georgia
Why Atlanta ranks #2: the numbers tell a clear story. At 110 on the cost index, residents save roughly 1% less than the typical American. Rent sits at $1,888/month while the median household pulls in $81,938/year. The Healthcare category is particularly strong at 102, though Housing (110) lags behind. Home prices average $381,549 — $85,821 below the national median.
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.
Houston (ranked #1) has a cost index of 90 and rent of $1,542/mo, while Atlanta (ranked #2) has a cost index of 110 and rent of $1,888/mo — a 20-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 Houston is $1,542/month as of 2026, based on Zillow's Observed Rent Index. This is $353 below the national median of $1,895/month.
The median home price in Houston is $261,976, 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.