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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
The numbers are clear: 2 of 2 cities beat the national cost-of-living benchmark of 111. Phoenix stands out at 91 on the index, with rent of $1,556/month and household income of $77,041. Assembled from 2026 Census, Zillow, and BLS data.
The numbers are clear: 2 of 2 cities beat the national cost-of-living benchmark of 111. Phoenix stands out at 91 on the index, with rent of $1,556/month and household income of $77,041. Assembled from 2026 Census, Zillow, and BLS data.
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 number worth sharing with anyone who says affordable cities can't have good jobs.
Now apply that to an actual budget: 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. Not many cities can claim this.
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
Look, a closer look at Phoenix: the cost index of 91 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.
483,335 residents · Nebraska
The #2 spot goes to Omaha, and the breakdown explains why. Renters here pay $1,403/month — saving renters $5,904 per year compared to the national average. Meanwhile, Housing is the standout at index 82, making it one of the cheapest in the country for that category. The weak spot? Healthcare at 96. At a 23% rent-to-income ratio, there's genuine breathing room in the average household budget.
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 Omaha (ranked #2) has a cost index of 82 and rent of $1,403/mo — a 9-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.