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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
Dollar for dollar, these cities represent some of the best deals in America. 2 out of 2 cities undercut the national cost index of 111 — for better or worse — . Leading the pack: Phoenix at index 91, where median rent of $1,556/month saves renters $4,068/year versus the national median.
Dollar for dollar, these cities represent some of the best deals in America. 2 out of 2 cities undercut the national cost index of 111 — for better or worse — . Leading the pack: Phoenix at index 91, where median rent of $1,556/month saves renters $4,068/year versus the national median.
A closer look at Phoenix: the cost index of 91 — and that's before you even look at taxes — breaks down to a Housing index of 91 (strongest category) and a Healthcare index of 98 (weakest). 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.
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); Indianapolis (index 79, rent $1,356). Each city profile below links to the full detail page with 12-month trends, salary breakdowns, and cost category comparisons. Honestly, this is the kind of city that makes you wonder why more people aren't paying attention. The numbers are right there — rent that doesn't eat your paycheck, costs that actually leave room for a life. And yet it barely shows up in the national conversation about affordable places to live. Maybe that's a good thing. Maybe that's what keeps it affordable (not adjusted for inflation, but still telling).
The counter-argument is worth hearing: 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. This is the kind of number that should get your attention (that's pre-tax, of course).
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 for many people, 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: 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
| Rank | City | Cost Index | Median Rent | |
|---|---|---|---|---|
| 1 | PhoenixAZ | 91 | $1,556 | Details |
| 2 | IndianapolisIN | 79 | $1,356 | Details |
1,650,070 residents · Arizona
The numbers for Phoenix are straightforward: 91 on the cost index, $1,556/month — which, honestly, is lower than you'd expect here — rent, $77,041 income. And generally speaking, not the most exciting entry in the list, but solid. That alone makes it worth considering (a figure that keeps climbing, by the way).
879,293 residents · Indiana
Why Indianapolis ranks #2: the numbers tell a clear story. At 79 on the cost index, residents save roughly 32% less than the typical American. Rent sits at $1,356/month while the median household pulls in $62,995/year. The Housing category is particularly strong at 79, though Healthcare (96) lags behind. Home prices average $226,528 — $240,842 below the national median.
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 Indianapolis (ranked #2) has a cost index of 79 and rent of $1,356/mo — a 12-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.