Loading
Assembling your view…
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. Phoenix leads at an index of 104 with rent at just $1,556/month — 18% 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. Phoenix leads at an index of 104 with rent at just $1,556/month — 18% less than the $1,895 national median. Here are the numbers, sourced from federal data updated in 2026.
A closer look at Phoenix: the cost index of 104 — for better or worse — breaks down to a Utilities index of 95 (strongest category) and a Housing index of 109 (weakest). And on balance, median rent is $1,556/month — 18% below the national median — while household income sits at $77,041, meaning locals spend about 24% of income on rent. That's a healthy margin by any standard (and that gap widens if you factor in state taxes).
If the first stat impressed you, this one grounds it. And on balance, for context: the typical American city has a cost index of 112, 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. Worth a deeper look.
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: Phoenix, AZ — cost index 104, rent $1,556/mo, income $77,041
2 of 2 cities come in below the national cost-of-living average of 112
Data sourced from Census Bureau, Zillow, BLS, and Tax Foundation — current as of 2026
| Rank | City | Cost Index | Median Rent | |
|---|---|---|---|---|
| 1 | PhoenixAZ | 104 | $1,556 | Details |
| 2 | BaltimoreMD | 96 | $1,708 | Details |
1,650,070 residents · Arizona
Here's Phoenix by the numbers — and there's a lot to like (and a little to watch). And with some exceptions, cost index: 104. Rent: $1,556/month. Income: $77,041/year. Home price: $407,665. Population: 1,650,070. The strongest category is Utilities at 95; the most expensive is Housing at 109. Translate that rent to annual numbers, and residents are saving renters $4,068 per year vs. the national median. This stands out as genuinely impressive.
565,239 residents · Maryland
The #2 spot goes to Baltimore, and the breakdown explains why. Renters here pay $1,708/month — saving renters $2,244 per year compared to the national average. Meanwhile, Utilities is the standout at index 88, making it one of the cheapest in the country for that category. The weak spot? Healthcare at 99. The 34% rent-to-income ratio is a pressure point — for median earners, housing takes more than recommended.
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.
Phoenix (ranked #1) has a cost index of 104 and rent of $1,556/mo, while Baltimore (ranked #2) has a cost index of 96 and rent of $1,708/mo — a 8-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 Phoenix is $1,556/month as of 2026, based on Zillow's Observed Rent Index. This is $339 below the national median of $1,895/month.
The median home price in Phoenix is $407,665, which is 5.3× the local median income. Most median-income households would stretch to buy at this ratio. 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.