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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. 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 (not adjusted for inflation, but still telling).
The numbers are clear: 2 of 2 cities beat the national cost-of-living benchmark of 111. 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 (not adjusted for inflation, but still telling).
Houston earns its position at #1 through a combination that's hard to replicate. 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.
For all that, there's a counter-signal worth noting: For context: the typical American city has a cost index of 111 — worth pausing on — , 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.
If you're ready to act on this, three things to do next: 1) Click into the city pages for the top 3 and check rent trends — direction matters more than the snapshot. 2) Run your income through the salary calculator for a personalized cost comparison. 3) Compare your top two picks head-to-head on our comparison page. The data is here; the decision is yours.
#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 | LouisvilleKY | 79 | $1,352 | Details |
2,314,157 residents · Texas
Real talk: the #1 spot goes to Houston, and the breakdown explains why. Renters here pay $1,542/month — we had to double-check this one — — saving renters $4,236 per year compared to the national average. Meanwhile, Housing is the standout at index 90, keeping costs manageable. The weak spot? Healthcare at 98. A 29% rent-to-income ratio keeps most households inside the safe zone. Solidly above average.
622,981 residents · Kentucky
A closer look at Louisville: the cost index of 79 breaks down to a Housing index of 79 (strongest category) and a Healthcare index of 96 (weakest). Median rent is $1,352/month — 29% below the national median — while household income sits at $64,731, meaning locals spend about 25% of income on rent. That's within the recommended 30% threshold, though it doesn't leave much room (and that gap widens if you factor in state taxes).
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 Louisville (ranked #2) has a cost index of 79 and rent of $1,352/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.