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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
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. Leading the pack: Houston at index 90, where median rent of $1,542/month saves renters $4,236/year versus the national median.
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. Leading the pack: Houston at index 90, where median rent of $1,542/month saves renters $4,236/year versus the national median.
Why Houston ranks #1: the numbers tell a clear story. At 90 on the cost index, residents save roughly 21% less than the typical American. Rent sits at $1,542/month while the median household pulls in $62,894/year. The Housing category is particularly strong at 90, though Healthcare (98) lags behind. Home prices average $261,976 — $205,394 below the national median.
No sugarcoating: 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); Raleigh (index 92, rent $1,567). Each city profile below links to the full detail page with 12-month trends, salary breakdowns, and cost category comparisons (we double-checked this one).
Factor in the cost side, though, and the picture shifts. And depending on your situation, 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. This is quietly one of the better values out there.
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
What does daily life actually cost in Houston? Start with the 29% rent-to-income ratio — tight but manageable for most households. On the category level, Housing (index 90) is where the real savings show up, while Healthcare (index 98) is the line item most likely to surprise newcomers. Income at $62,894 and homes at $261,976 round out a profile that ranks #1 for clear reasons (not adjusted for inflation, but still telling).
482,295 residents · North Carolina
Dive into Raleigh's numbers: cost index 92 — which, honestly, is lower than you'd expect here — (19 points below national average), rent $1,567/month, income $82,424, and a home price of $428,831. The city's cost profile isn't flat — Housing is the cheapest category at 92, while Healthcare runs 98. With 482,295 residents, it balances mid-size city convenience with manageable costs.
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 Raleigh (ranked #2) has a cost index of 92 and rent of $1,567/mo — a 2-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.