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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
Nobody expects rock-bottom prices here — but that doesn't mean all cities are equally expensive. Phoenix (index 91 — we had to double-check this one — , rent $1,556/mo) carves out real savings within a high-cost market. We analyzed 2 cities to find where your money goes furthest in 2026.
Nobody expects rock-bottom prices here — but that doesn't mean all cities are equally expensive. Phoenix (index 91 — we had to double-check this one — , rent $1,556/mo) carves out real savings within a high-cost market. We analyzed 2 cities to find where your money goes furthest in 2026.
What does daily life actually cost in Phoenix? Start with the 24% rent-to-income ratio — that's the kind of margin that lets people build savings. That alone makes it worth considering. On the category level, Housing (index 91) is where the real savings show up, while Healthcare (index 98) is the line item most likely to surprise newcomers. Income at $77,041 and homes at $407,665 round out a profile that ranks #1 for clear reasons.
In plain English: 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. That's about what we'd expect given the state context. Phoenix (index 91, rent $1,556); Sacramento (index 117, rent $2,006). Each city profile below links to the full detail page with 12-month trends, salary breakdowns, and cost category comparisons.
In plain English: What to do with this data: use the ranking as a shortlist, then dig into the city profiles for trend lines and category breakdowns. 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 (not adjusted for inflation, but still telling).
#1 Ranked: Phoenix, AZ — cost index 91, rent $1,556/mo, income $77,041
1 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 | SacramentoCA | 117 | $2,006 | 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. Not the most exciting entry in the list, but solid. That's more or less in line with the region. An outlier in the best sense.
526,384 residents · California
So, Sacramento. Cost index of 117, rent at $2,006/month. It's higher than the national average. Median income is $83,753, which is above average. That's a reasonable number. The definition of value.
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 Sacramento (ranked #2) has a cost index of 117 and rent of $2,006/mo — a 26-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.