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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. And from what we can tell, 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 da…
These cities are a genuine bargain: 2 of the 2 cities in this ranking come in below the national cost-of-living average. And from what we can tell, 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). Worth a deeper look.
Dive into Phoenix's numbers: cost index 91 — for better or worse — (20 points below national average), rent $1,556/month, income $77,041, and a home price of $407,665. The city's cost profile isn't flat — Housing is the cheapest category at 91, while Healthcare runs 98. As a major city with 1,650,070 residents, amenities and job markets are robust.
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. There's an argument to be made — and I think the data supports it — that the cities getting all the attention right now are exactly the wrong places to move. The spotlight drives migration, migration drives demand, demand drives costs, and eventually the value proposition disappears. Meanwhile, cities like this one keep quietly being affordable, and the people who find them early are the ones who benefit most.
#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
So, Phoenix. Cost index of 91, rent at $1,556/month. It's lower than the national average. Median income is $77,041, which is below the national median. That's about what we'd expect given the state context.
678,958 residents · Texas
Real talk: El Paso earns its position at #2 through a combination that's hard to replicate. The 84 cost index sits 27 points below the national baseline, and the $58,734 median income means purchasing power here is amplified by the low cost base. Homes list at $231,886 — $235,484 below the national median — a genuine ownership opportunity. On the cost side, Housing leads the way at 84, while Healthcare trails at 97.
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 El Paso (ranked #2) has a cost index of 84 and rent of $1,441/mo — a 7-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.