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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
Premium market, smart picks: while the market trends above the national average, the gap between the most and least expensive cities here is wider than you'd think. Philadelphia at index 101 — make of that what you will — is the standout — offering meaningful savings without leaving a desirable mar…
Premium market, smart picks: while the market trends above the national average, the gap between the most and least expensive cities here is wider than you'd think. Philadelphia at index 101 — make of that what you will — is the standout — offering meaningful savings without leaving a desirable market.
Here's Philadelphia by the numbers — and there's a lot to like (and a little to watch). Cost index: 101. Rent: $1,734/month — which, honestly, is lower than you'd expect here — . Income: $60,698/year. Home price: $229,411. Population: 1,550,542. The strongest category is Healthcare at 100; the most expensive is Housing at 101. Translate that rent to annual numbers, and residents are saving renters $1,932 per year vs. the national median. On a fixed income, this is the metric that matters most.
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. Philadelphia (index 101 — worth pausing on — , rent $1,734); Nashville (index 103, rent $1,772). Each city profile below links to the full detail page with 12-month trends, salary breakdowns, and cost category comparisons.
One more layer before the full breakdown: Nationally, the 288 cities in our database average a cost index of 111, rent of $1,895/month, and household income of $80,367. And more often than not, the cities in this ranking significantly outperform those benchmarks. From a pure purchasing-power standpoint, this is elite.
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 on balance, 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: 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 | NashvilleTN | 103 | $1,772 | Details |
1,550,542 residents · Pennsylvania
Philadelphia earns its position at #1 through a combination that's hard to replicate. The 101 cost index sits 10 points below the national baseline, and the $60,698 — we had to double-check this one — median income means purchasing power here is amplified by the low cost base. Homes list at $229,411 — $237,959 below the national median — a genuine ownership opportunity. On the cost side, Healthcare leads the way at 100, while Housing trails at 101 (that's pre-tax, of course).
687,788 residents · Tennessee
Nashville is one of the cheaper options here. Rent is $1,772/month, which is lower than most cities in this ranking. The cost index is 103. Income sits at $75,197. 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.
Philadelphia (ranked #1) has a cost index of 101 and rent of $1,734/mo, while Nashville (ranked #2) has a cost index of 103 and rent of $1,772/mo — a 2-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.