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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
Let's be honest: these cities aren't cheap. But within that premium market, there are cities where your dollar stretches meaningfully further. Phoenix proves it with a cost index of 91, and we've ranked all 2 contenders to help you find the best deal in an expensive landscape.
Let's be honest: these cities aren't cheap. But within that premium market, there are cities where your dollar stretches meaningfully further. Phoenix proves it with a cost index of 91, and we've ranked all 2 contenders to help you find the best deal in an expensive landscape.
Why Phoenix ranks #1: the numbers tell a clear story. At 91 on the cost index, residents save roughly 20% less than the typical American. Rent sits at $1,556/month while the median household pulls in $77,041/year. The Housing category is particularly strong at 91, though Healthcare (98) lags behind. Home prices average $407,665 — $59,705 below the national median (and that gap widens if you factor in state taxes).
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
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 | San FranciscoCA | 224 | $3,830 | Details |
1,650,070 residents · Arizona
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.
808,988 residents · California
Here's San Francisco by the numbers — and there's a lot to like. Cost index: 224. Rent: $3,830/month. Income: $141,446/year. Home price: $1,299,230. Population: 808,988. The strongest category is Healthcare at 125; the most expensive is Housing at 224. Translate that rent to annual numbers, and residents are costing renters $23,220 more per year vs. That's more or less in line with the region. the national median. This is the kind of number that should get your attention.
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 San Francisco (ranked #2) has a cost index of 224 and rent of $3,830/mo — a 133-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.