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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. Memphis leads at an index of 72 with rent at just $1,234/month — 35% 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. Memphis leads at an index of 72 with rent at just $1,234/month — 35% less than the $1,895 national median. Here are the numbers, sourced from federal data updated in 2026.
Why Memphis ranks #1: the numbers tell a clear story. At 72 on the cost index, residents save roughly 39% less than the typical American. Rent sits at $1,234/month while the median household pulls in $51,211/year. The Housing category is particularly strong at 72, though Healthcare (94) lags behind. Home prices average $142,870 — $324,500 below the national median.
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. Memphis (index 72, rent $1,234); Colorado Springs (index 97, rent $1,667). Each city profile below links to the full detail page with 12-month trends, salary breakdowns, and cost category comparisons.
The broader context shifts things: For context: the typical American city has a cost index of 111, 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.
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: Memphis, TN — cost index 72, rent $1,234/mo, income $51,211
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 | MemphisTN | 72 | $1,234 | Details |
| 2 | Colorado SpringsCO | 97 | $1,667 | Details |
618,639 residents · Tennessee
The #1 spot goes to Memphis, and the breakdown explains why. And as far as the data shows, renters here pay $1,234/month — a detail that tends to get overlooked — — saving renters $7,932 per year compared to the national average. Meanwhile, Housing is the standout at index 72, making it one of the cheapest in the country for that category. The weak spot? Healthcare at 94. A 29% rent-to-income ratio keeps most households inside the safe zone.
488,664 residents · Colorado
Dive into Colorado Springs's numbers: cost index 97 (14 points below national average), rent $1,667/month, income $83,198, and a home price of $446,132. Take it or leave it — the data is what it is. The city's cost profile isn't flat — Housing is the cheapest category at 97, while Healthcare runs 99. With 488,664 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.
Memphis (ranked #1) has a cost index of 72 and rent of $1,234/mo, while Colorado Springs (ranked #2) has a cost index of 97 and rent of $1,667/mo — a 25-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.