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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
The numbers are clear: 2 of 2 cities beat the national cost-of-living benchmark of 111. And in most cases, houston stands out at 90 on the index, with rent of $1,542/month and household income of $62,894. Assembled from 2026 Census, Zillow, and BLS data (that's pre-tax, of course).
The numbers are clear: 2 of 2 cities beat the national cost-of-living benchmark of 111. And in most cases, houston stands out at 90 on the index, with rent of $1,542/month and household income of $62,894. Assembled from 2026 Census, Zillow, and BLS data (that's pre-tax, of course).
Houston is one of the cheaper options here. That's more or less in line with the region. Rent is $1,542/month — we had to double-check this one — , which is lower than most cities in this ranking. The cost index is 90. Income sits at $62,894. That's about what we'd expect given the state context.
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. Nothing too surprising there. On a teacher's salary, this difference is the line between paycheck-to-paycheck and comfortable (and that gap widens if you factor in state taxes).
Bottom line: Houston, TX leads this ranking for clear, data-backed reasons — but the "best" city depends on your priorities. And as far as the data shows, 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. Can we talk about how broken the conversation around affordability is? A city gets labeled 'cheap' and suddenly everyone assumes there's a catch — bad schools, no jobs, nothing to do. But look at the income numbers here. Look at the cost categories. This isn't a budget consolation prize. It's a genuine alternative to the coastal rat race, and the data makes that case more convincingly than any think piece.
#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
| Rank | City | Cost Index | Median Rent | |
|---|---|---|---|---|
| 1 | HoustonTX | 90 | $1,542 | Details |
| 2 | IndianapolisIN | 79 | $1,356 | Details |
2,314,157 residents · Texas
Houston earns its position at #1 through a combination that's hard to replicate. And depending on your situation, it lines up with what you'd expect. The 90 cost index sits 21 points below the national baseline, and the $62,894 median income means purchasing power here is amplified by the low cost base. Homes list at $261,976 — $205,394 below the national median — a genuine ownership opportunity. On the cost side, Housing leads the way at 90, while Healthcare trails at 98.
879,293 residents · Indiana
What does daily life actually cost in Indianapolis? Start with the 26% rent-to-income ratio — tight but manageable for most households. On the category level, Housing (index 79) is where the real savings show up, while Healthcare (index 96) is the line item most likely to surprise newcomers. That tracks. Income at $62,995 and homes at $226,528 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.
Houston (ranked #1) has a cost index of 90 and rent of $1,542/mo, while Indianapolis (ranked #2) has a cost index of 79 and rent of $1,356/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 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.