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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 111. Philadelphia stands out at 101 on the index, with rent of $1,734/month and household income of $60,698. Assembled from 2026 Census, Zillow, and BLS data.
The numbers are clear: 2 of 2 cities beat the national cost-of-living benchmark of 111. Philadelphia stands out at 101 on the index, with rent of $1,734/month and household income of $60,698. Assembled from 2026 Census, Zillow, and BLS data.
Why Philadelphia ranks #1: the numbers tell a clear story. At 101 on the cost index, residents save roughly 10% less than the typical American. Rent sits at $1,734/month while the median household pulls in $60,698/year. The Healthcare category is particularly strong at 100, though Housing (101) lags behind. Home prices average $229,411 — $237,959 below the national median.
Quick aside: when housing takes less of your income, the secondary effects are real — less financial stress, more discretionary spending, better local businesses.
The other side of the coin: 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 ratio is hard to beat anywhere else.
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. 3) Compare your top two picks head-to-head on our comparison page. The data is here; the decision is yours.
#1 Ranked: Philadelphia, PA — cost index 101, rent $1,734/mo, income $60,698
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 | PhiladelphiaPA | 101 | $1,734 | Details |
| 2 | MemphisTN | 72 | $1,234 | Details |
1,550,542 residents · Pennsylvania
What does daily life actually cost in Philadelphia? Start with the 34% rent-to-income ratio — stretched, especially for single earners. On the category level, Healthcare (index 100) is where the real savings show up, while Housing (index 101) is the line item most likely to surprise newcomers. Income at $60,698 and homes at $229,411 round out a profile that ranks #1 for clear reasons.
618,639 residents · Tennessee
Memphis earns its position at #2 through a combination that's hard to replicate. The 72 cost index sits 39 points below the national baseline, and the $51,211 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.
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.
Philadelphia (ranked #1) has a cost index of 101 and rent of $1,734/mo, while Memphis (ranked #2) has a cost index of 72 and rent of $1,234/mo — a 29-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 Philadelphia is $1,734/month as of 2026, based on Zillow's Observed Rent Index. This is $161 below the national median of $1,895/month.
The median home price in Philadelphia is $229,411, which is 3.8× 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.