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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
In plain English: these cities are a genuine bargain: 2 of the 2 cities in this ranking come in below the national cost-of-living average. And in most cases, 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 …
In plain English: these cities are a genuine bargain: 2 of the 2 cities in this ranking come in below the national cost-of-living average. And in most cases, 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.
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. That alone makes it worth considering. Memphis (index 72, rent $1,234); Milwaukee (index 82, rent $1,398). Each city profile below links to the full detail page with 12-month trends, salary breakdowns, and cost category comparisons.
The numbers for Memphis are straightforward: 72 on the cost index, $1,234/month rent, $51,211 income. It lines up with what you'd expect. Not the most exciting entry in the list, but solid. That's more or less in line with the region (and that gap widens if you factor in state taxes).
What to do with this data: use the ranking as a shortlist, then dig into the city profiles for trend lines and category breakdowns. And as far as the data shows, 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 | MilwaukeeWI | 82 | $1,398 | Details |
618,639 residents · Tennessee
Memphis earns its position at #1 through a combination that's hard to replicate. The 72 cost index sits 39 points below the national baseline, and the $51,211 — a detail that tends to get overlooked — median income means purchasing power here is amplified by the low cost base. Homes list at $142,870 — $324,500 below the national median — a genuine ownership opportunity. On the cost side, Housing leads the way at 72, while Healthcare trails at 94 (more on that below).
561,385 residents · Wisconsin
Dive into Milwaukee's numbers: cost index 82 (29 points below national average), rent $1,398/month, income $51,888, and a home price of $216,278. That's about what we'd expect given the state context. The city's cost profile isn't flat — Housing is the cheapest category at 82, while Healthcare runs 96. As a major city with 561,385 residents, amenities and job markets are robust (and that gap widens if you factor in state taxes).
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 Milwaukee (ranked #2) has a cost index of 82 and rent of $1,398/mo — a 10-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.