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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
Let's be honest: these cities aren't cheap. And generally speaking, fairly typical for a city this size. But within that premium market, there are cities where your dollar stretches meaningfully further. Houston proves it with a cost index of 90, and we've ranked all 2 contenders to help you find th…
Let's be honest: these cities aren't cheap. And generally speaking, fairly typical for a city this size. But within that premium market, there are cities where your dollar stretches meaningfully further. Houston proves it with a cost index of 90, and we've ranked all 2 contenders to help you find the best deal in an expensive landscape (not adjusted for inflation, but still telling).
The numbers for Houston are straightforward: 90 on the cost index, $1,542/month rent, $62,894 income. And with some exceptions, not the most exciting entry in the list, but solid. Standard stuff, really. No major red flags in that number. One to watch.
In plain English: Quick aside: when housing takes less of your income, the secondary effects are real — less financial stress, more discretionary spending, better local businesses (not adjusted for inflation, but still telling).
Contrast this with: For context: the typical American city has a cost index of 111 — whether that matters depends on your situation — , 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.
Real talk: 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. Worth a deeper look.
#1 Ranked: Houston, TX — cost index 90, rent $1,542/mo, income $62,894
1 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 | San JoseCA | 188 | $3,222 | Details |
2,314,157 residents · Texas
Houston comes in at #1. Rent is $1,542 a month. Household income is $62,894. The cost of living index is 90. Fairly typical for a city this size (a figure that keeps climbing, by the way).
969,655 residents · California
The numbers for San Jose are straightforward: 188 on the cost index, $3,222/month rent, $141,565 income. It lines up with what you'd expect. Not the most exciting entry in the list, but solid. Fairly typical for a city this size.
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 San Jose (ranked #2) has a cost index of 188 and rent of $3,222/mo — a 98-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.