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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
Premium market, smart picks: while the market trends above the national average, the gap between the most and least expensive cities here is wider than you'd think. Phoenix at index 91 is the standout — offering meaningful savings without leaving a desirable market.
Premium market, smart picks: while the market trends above the national average, the gap between the most and least expensive cities here is wider than you'd think. Phoenix at index 91 is the standout — offering meaningful savings without leaving a desirable market.
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); Washington (index 140, rent $2,406). Each city profile below links to the full detail page with 12-month trends, salary breakdowns, and cost category comparisons.
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.
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.
#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 | WashingtonDC | 140 | $2,406 | Details |
1,650,070 residents · Arizona
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 — for better or worse — 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.
678,972 residents · District of Columbia
A closer look at Washington: the cost index of 140 breaks down to a Healthcare index of 108 (strongest category) and a Housing index of 140 (weakest). And in most cases, median rent is $2,406/month — 27% above the national median — while household income sits at $106,287, meaning locals spend about 27% of income on rent. That's within the recommended 30% threshold, though it doesn't leave much room.
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 Washington (ranked #2) has a cost index of 140 and rent of $2,406/mo — a 49-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.