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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
These cities are a genuine bargain: 2 of the 2 cities in this ranking come in below the national cost-of-living average. 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.
These cities are a genuine bargain: 2 of the 2 cities in this ranking come in below the national cost-of-living average. 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.
The #1 spot goes to Houston, and the breakdown explains why. Renters here pay $1,542/month — 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.
Perhaps more importantly, 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. That's a margin of safety most budgets don't have.
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
2,314,157 residents · Texas
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 could be a concern depending on your priorities.
618,639 residents · Tennessee
Here's Memphis by the numbers — and there's a lot to like (and a little to watch). And generally speaking, cost index: 72. Rent: $1,234/month — and yes, that's adjusted for the region — . Income: $51,211/year. Home price: $142,870. Population: 618,639. The strongest category is Housing at 72; the most expensive is Healthcare at 94. Translate that rent to annual numbers, and residents are saving renters $7,932 per year vs. the national median. The practical impact: more room for childcare, savings, or just breathing room.
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 Memphis (ranked #2) has a cost index of 72 and rent of $1,234/mo — a 18-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.