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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
In plain English: Dollar for dollar, these cities represent some of the best deals in America. 2 out of 2 cities undercut the national cost index of 111. Take it or leave it — the data is what it is. Leading the pack: Houston at index 90, where median rent of $1,542/month saves renters $4,236/year v…
In plain English: Dollar for dollar, these cities represent some of the best deals in America. 2 out of 2 cities undercut the national cost index of 111. Take it or leave it — the data is what it is. Leading the pack: Houston at index 90, where median rent of $1,542/month saves renters $4,236/year versus the national median.
At $1,542/month for rent and a cost index of 90, Houston is pretty much what you'd expect from a larger city in this part of the country. Income is $62,894. That tracks.
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. Houston (index 90, rent $1,542); Dallas (index 93, rent $1,591). Each city profile below links to the full detail page with 12-month trends, salary breakdowns, and cost category comparisons.
Look, Now, the part that complicates the narrative: Nationally, the 288 cities in our database average a cost index of 111 — we had to double-check this one — , rent of $1,895/month, and household income of $80,367. The cities in this ranking significantly outperform those benchmarks. That's a number worth sharing with anyone who says affordable cities can't have good jobs. Quietly competitive.
Bottom line: Houston, TX 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: 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
So, Houston. Cost index of 90, rent at $1,542/month. It's lower than the national average. Median income is $62,894, which is below the national median. That alone makes it worth considering.
1,302,868 residents · Texas
Here's Dallas by the numbers — and there's a lot to like (and a little to watch). Cost index: 93. Rent: $1,591/month — we had to double-check this one — . Income: $67,760/year. Home price: $305,523. Population: 1,302,868. The strongest category is Housing at 93; the most expensive is Healthcare at 99. Translate that rent to annual numbers, and residents are saving renters $3,648 per year vs. the national median. The delta here is big enough to fund a retirement account (that's pre-tax, of course). Not flashy. Just effective.
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 Dallas (ranked #2) has a cost index of 93 and rent of $1,591/mo — a 3-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.