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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. Phoenix leads at an index of 91 with rent at just $1,556/month — 18% less than the $1,895 national median. Here are the numbers, sourced from federal data update…
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. Phoenix leads at an index of 91 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 (and that gap widens if you factor in state taxes).
Phoenix earns its position at #1 through a combination that's hard to replicate. The 91 cost index sits 20 points below the national baseline, and the $77,041 median income means purchasing power here is amplified by the low cost base. Homes list at $407,665 — $59,705 below the national median — a genuine ownership opportunity. On the cost side, Housing leads the way at 91, while Healthcare trails at 98.
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. Phoenix (index 91, rent $1,556); Denver (index 106, rent $1,818). Each city profile below links to the full detail page with 12-month trends, salary breakdowns, and cost category comparisons.
The math checks out.
Against the national baseline, though: 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 adds up much faster than people realize.
Bottom line: Phoenix, AZ leads this ranking for clear, data-backed reasons — but the "best" city depends on your priorities. Click into any city below to see the full detail page with 12-month trend charts, profession-specific salary data, and a breakdown of all five cost categories. If you're seriously considering a move, use our salary calculator to model your specific income against these numbers.
#1 Ranked: Phoenix, AZ — cost index 91, rent $1,556/mo, income $77,041
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
1,650,070 residents · Arizona
Here's Phoenix by the numbers — and there's a lot to like (and a little to watch). Cost index: 91. Rent: $1,556/month. Income: $77,041/year. Home price: $407,665. Population: 1,650,070. The strongest category is Housing at 91; the most expensive is Healthcare at 98. Translate that rent to annual numbers, and residents are saving renters $4,068 per year vs. the national median. That's a difference you notice every single month (that's pre-tax, of course).
716,577 residents · Colorado
Denver comes in at #2. Rent is $1,818 a month. Household income is $91,681. The cost of living index is 106. Nothing too surprising there.
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 91 and rent of $1,556/mo, while Denver (ranked #2) has a cost index of 106 and rent of $1,818/mo — a 15-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.