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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. San Jose at index 188 — whether that matters depends on your situation — is the standout — offering meaningful savings without leaving…
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. San Jose at index 188 — whether that matters depends on your situation — 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. And depending on your situation, san Jose (index 188, rent $3,222); Raleigh (index 92, rent $1,567). Each city profile below links to the full detail page with 12-month trends, salary breakdowns, and cost category comparisons.
The #1 spot goes to San Jose, and the breakdown explains why. Renters here pay $3,222/month — costing renters $15,924 more per year compared to the national average. Meanwhile, Healthcare is the standout at index 118, keeping costs manageable. The weak spot? Housing at 188. A 27% rent-to-income ratio keeps most households inside the safe zone.
It checks most boxes — but the housing costs are the asterisk. In San Jose, the housing index sits at 188 — above average and worth factoring in.
San Jose rent up 3% over the past year. And more often than not, rent in #1-ranked San Jose has increased from $3,119 to $3,222/mo over the past 12 months — a 3% increase. Rising costs may erode its top ranking over time.
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 (we double-checked this one).
#1 Ranked: San Jose, CA — cost index 188, rent $3,222/mo, income $141,565
San Jose rent up 3% over the past year
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 | San JoseCA | 188 | $3,222 | Details |
| 2 | RaleighNC | 92 | $1,567 | Details |
969,655 residents · California
The #1 spot goes to San Jose, and the breakdown explains why. Renters here pay $3,222/month — costing renters $15,924 more per year compared to the national average. Meanwhile, Healthcare is the standout at index 118, keeping costs manageable. The weak spot? Housing at 188. A 27% rent-to-income ratio keeps most households inside the safe zone.
482,295 residents · North Carolina
A closer look at Raleigh: the cost index of 92 — for better or worse — breaks down to a Housing index of 92 (strongest category) and a Healthcare index of 98 (weakest). That tracks. Median rent is $1,567/month — 17% below the national median — while household income sits at $82,424, meaning locals spend about 23% of income on rent. That's a healthy margin by any standard (that's pre-tax, of course).
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.
San Jose (ranked #1) has a cost index of 188 and rent of $3,222/mo, while Raleigh (ranked #2) has a cost index of 92 and rent of $1,567/mo — a 96-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 San Jose is $3,222/month as of 2026, based on Zillow's Observed Rent Index. This is $1,327 above the national median of $1,895/month.
The median home price in San Jose is $1,435,993, which is 10.1× 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.