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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.
The #1 spot goes to Memphis, and the breakdown explains why. Renters here pay $1,234/month — we had to double-check this one — — 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.
If you're ready to act on this, three things to do next: 1) Click into the city pages for the top 3 and check rent trends — direction matters more than the snapshot. 2) Run your income through the salary calculator for a personalized cost comparison. There's not much to say about that beyond the obvious. 3) Compare your top two picks head-to-head on our comparison page. The data is here; the decision is yours.
#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
618,639 residents · Tennessee
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.
547,239 residents · Arizona
Tucson is one of the cheaper options here. Rent is $1,399/month, which is lower than most cities in this ranking. The cost index is 82. Income sits at $54,546. Take it or leave it — the data is what it is.
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 Tucson (ranked #2) has a cost index of 82 and rent of $1,399/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.