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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.
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.
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); Philadelphia (index 101, rent $1,734). Each city profile below links to the full detail page with 12-month trends, salary breakdowns, and cost category comparisons.
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.
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
| Rank | City | Cost Index | Median Rent | |
|---|---|---|---|---|
| 1 | HoustonTX | 90 | $1,542 | Details |
| 2 | PhiladelphiaPA | 101 | $1,734 | Details |
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. For anyone running the numbers, this is where it clicks.
1,550,542 residents · Pennsylvania
The #2 spot goes to Philadelphia, and the breakdown explains why. Renters here pay $1,734/month — saving renters $1,932 per year compared to the national average. Meanwhile, Healthcare is the standout at index 100, keeping costs manageable. The weak spot? Housing at 101. The 34% rent-to-income ratio is a pressure point — for median earners, housing takes more than recommended.
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 Philadelphia (ranked #2) has a cost index of 101 and rent of $1,734/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.