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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 112. Memphis stands out at 86 on the index, with rent of $1,234/month and household income of $51,211. Assembled from 2026 Census, Zillow, and BLS data.
The numbers are clear: 2 of 2 cities beat the national cost-of-living benchmark of 112. Memphis stands out at 86 on the index, with rent of $1,234/month and household income of $51,211. Assembled from 2026 Census, Zillow, and BLS data.
A closer look at Memphis: the cost index of 86 breaks down to a Housing index of 66 (strongest category) and a Healthcare index of 89 (weakest). Median rent is $1,234/month — 35% below the national median — while household income sits at $51,211, meaning locals spend about 29% of income on rent. That's within the recommended 30% threshold, though it doesn't leave much room.
It's worth mentioning — though it's outside our data model — that cities with these economics tend to attract remote workers, which can push prices up over time.
The other side of the coin: Nationally, the 288 cities in our database average a cost index of 112, rent of $1,895/month, and household income of $80,367. The cities in this ranking significantly outperform those benchmarks. If you plug these numbers into any cost calculator, they hold up.
Bottom line: Memphis, TN 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.
#1 Ranked: Memphis, TN — cost index 86, rent $1,234/mo, income $51,211
2 of 2 cities come in below the national cost-of-living average of 112
Data sourced from Census Bureau, Zillow, BLS, and Tax Foundation — current as of 2026
| Rank | City | Cost Index | Median Rent | |
|---|---|---|---|---|
| 1 | MemphisTN | 86 | $1,234 | Details |
| 2 | AlbuquerqueNM | 99 | $1,457 | Details |
618,639 residents · Tennessee
What does daily life actually cost in Memphis? Start with the 29% rent-to-income ratio — tight but manageable for most households. On the category level, Housing (index 66) is where the real savings show up, while Healthcare (index 89) is the line item most likely to surprise newcomers. Income at $51,211 — make of that what you will — and homes at $142,870 round out a profile that ranks #1 for clear reasons.
560,274 residents · New Mexico
The #2 spot goes to Albuquerque, and the breakdown explains why. Renters here pay $1,457/month — saving renters $5,256 per year compared to the national average. Meanwhile, Utilities is the standout at index 91, keeping costs manageable. The weak spot? Healthcare at 102. A 27% rent-to-income ratio keeps most households inside the safe zone.
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.
Memphis (ranked #1) has a cost index of 86 and rent of $1,234/mo, while Albuquerque (ranked #2) has a cost index of 99 and rent of $1,457/mo — a 13-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 Memphis is $1,234/month as of 2026, based on Zillow's Observed Rent Index. This is $661 below the national median of $1,895/month.
The median home price in Memphis is $142,870, which is 2.8× the local median income. That's within the standard 3.5× affordability rule for most local earners. 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.