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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. Indianapolis leads at an index of 79 with rent at just $1,356/month — 28% 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. Indianapolis leads at an index of 79 with rent at just $1,356/month — 28% less than the $1,895 national median. Here are the numbers, sourced from federal data updated in 2026.
The #1 spot goes to Indianapolis, and the breakdown explains why. Renters here pay $1,356/month — saving renters $6,468 per year compared to the national average. Meanwhile, Housing is the standout at index 79, making it one of the cheapest in the country for that category. The weak spot? Healthcare at 96. A 26% rent-to-income ratio keeps most households inside the safe zone.
The same data, viewed through a different lens: 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 reasonable number. For freelancers and gig workers with variable income, this cushion is everything.
Bottom line: Indianapolis, IN leads this ranking for clear, data-backed reasons — but the "best" city depends on your priorities. Click into any city below to see the full detail page with 12-month trend charts, profession-specific salary data, and a breakdown of all five cost categories. If you're seriously considering a move, use our salary calculator to model your specific income against these numbers (which, to be fair, is a metric that favors smaller cities).
#1 Ranked: Indianapolis, IN — cost index 79, rent $1,356/mo, income $62,995
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 | IndianapolisIN | 79 | $1,356 | Details |
| 2 | LouisvilleKY | 79 | $1,352 | Details |
879,293 residents · Indiana
Here's Indianapolis by the numbers — and there's a lot to like (and a little to watch). And from what we can tell, cost index: 79. Rent: $1,356/month. Income: $62,995/year. Home price: $226,528. Population: 879,293. The strongest category is Housing at 79; the most expensive is Healthcare at 96. Translate that rent to annual numbers, and residents are saving renters $6,468 per year vs. the national median. This is quietly one of the better values out there.
622,981 residents · Kentucky
A closer look at Louisville: the cost index of 79 breaks down to a Housing index of 79 (strongest category) and a Healthcare index of 96 (weakest). And generally speaking, median rent is $1,352/month — 29% below the national median — while household income sits at $64,731, meaning locals spend about 25% of income on rent. That's within the recommended 30% threshold, though it doesn't leave much 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.
Indianapolis (ranked #1) has a cost index of 79 and rent of $1,356/mo, while Louisville (ranked #2) has a cost index of 79 and rent of $1,352/mo — a 0-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 Indianapolis is $1,356/month as of 2026, based on Zillow's Observed Rent Index. This is $539 below the national median of $1,895/month.
The median home price in Indianapolis is $226,528, which is 3.6× 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.