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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. 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.
Let's be honest: these cities aren't cheap. 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.
Dive into Houston's numbers: cost index 90 (21 points below national average), rent $1,542/month, income $62,894, and a home price of $261,976. The city's cost profile isn't flat — Housing is the cheapest category at 90, while Healthcare runs 98. As a major city with 2,314,157 residents, amenities and job markets are robust.
And here's what ties it all together: The national baseline: 111 cost index, $1,895/month rent, $80,367 household income. That's the yardstick. The cities ranked here blow past it — starting with Houston at just 90 on the index.
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
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 | WashingtonDC | 140 | $2,406 | Details |
2,314,157 residents · Texas
The #1 spot goes to Houston, and the breakdown explains why. And generally speaking, renters here pay $1,542/month — which, honestly, is lower than you'd expect here — — 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.
678,972 residents · District of Columbia
Dive into Washington's numbers: cost index 140 — and yes, that's adjusted for the region — (29 points above national average), rent $2,406/month, income $106,287, and a home price of $574,016. The city's cost profile isn't flat — Healthcare is the cheapest category at 108, while Housing runs 140. As a major city with 678,972 residents, amenities and job markets are robust.
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 Washington (ranked #2) has a cost index of 140 and rent of $2,406/mo — a 50-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.