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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
Denver breaks the usual trade-off between income and cost of living. Most affordable cities pay less — but Denver delivers a median household income of $91,681 (14% above the national median) while keeping costs 5 points below national average. That's a rare combination shared by only 40 of the 288 …
Denver earns above the national median ($91,681 vs $80,367) while keeping costs below average (index 106 vs 111). That combination is exceptionally rare — only 40 of 288 cities share it.
The race is tight: Denver, Colorado Springs, Aurora, Fort Collins, Lakewood are all within 5 points of each other. At this level, differences in rent, taxes, or a single category can sway the decision.
Denver breaks the usual trade-off between income and cost of living. Most affordable cities pay less — but Denver delivers a median household income of $91,681 (14% above the national median) while keeping costs 5 points below national average. That's a rare combination shared by only 40 of the 288 cities we track.
In plain English: Denver earns its position at #1 through a combination that's hard to replicate. And depending on your situation, the 106 cost index sits 5 points below the national baseline, and the $91,681 median income means purchasing power here is genuinely above average. Homes list at $530,920 — $63,550 above the national median, reflecting the metro premium. On the cost side, Healthcare leads the way at 101, while Housing trails at 106.
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. Denver (index 106, rent $1,818); Colorado Springs (index 97, rent $1,667); Aurora (index 99, rent $1,689). Each city profile below links to the full detail page with 12-month trends, salary breakdowns, and cost category comparisons. One to watch.
Most rankings ignore this. We think it's the whole point: Denver: high income, low cost — a rare combo. Denver earns above the national median ($91,681 vs $80,367) while keeping costs below average (index 106 vs 111). That combination is exceptionally rare — only 40 of 288 cities share it. Run the numbers annually, and it's like getting a bonus you didn't negotiate.
What you won't find on most comparison sites: Here's the state-level backdrop: Colorado averages a 103 cost index, $1,765/mo rent, and $90,112 income across 11 cities. That's $130 less than the national rent average. Outdoor lifestyle with a rising price tag — and that context shapes every city in this ranking.
Bottom line: Denver 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: Denver — cost index 106, rent $1,818/mo, income $91,681
Denver: high income, low cost — a rare combo
8 of 11 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 | Population | Cost Index | Median Rent | |
|---|---|---|---|---|---|
| 1 | Denver | 716,577 | 106 | $1,818 | Details |
| 2 | Colorado Springs | 488,664 | 97 | $1,667 | Details |
| 3 | Aurora | 177,563 | 99 | $1,689 | Details |
| 4 | Fort Collins | 170,376 | 115 | $1,970 | Details |
| 5 | Lakewood | 155,961 | 101 | $1,733 | Details |
| 6 | Thornton | 144,922 | 110 | $1,888 | Details |
| 7 | Arvada | 121,414 | 120 | $2,053 | Details |
| 8 | Westminster | 114,875 | 104 | $1,788 | Details |
| 9 | Greeley | 112,609 | 84 | $1,442 | Details |
| 10 | Pueblo | 111,077 | 77 | $1,316 | Details |
| 11 | Centennial | 106,883 | 120 | $2,056 | Details |
716,577 residents · Colorado
The way we see it, Denver earns its position at #1 through a combination that's hard to replicate. The 106 cost index sits 5 points below the national baseline, and the $91,681 median income means purchasing power here is genuinely above average. Homes list at $530,920 — $63,550 above the national median, reflecting the metro premium. On the cost side, Healthcare leads the way at 101, while Housing trails at 106.
488,664 residents · Colorado
Here's Colorado Springs by the numbers — and there's a lot to like (and a little to watch). Cost index: 97. It's fine. Not great, not bad. Rent: $1,667/month. Income: $83,198/year. Home price: $446,132. Population: 488,664. The strongest category is Housing at 97; the most expensive is Healthcare at 99. Translate that rent to annual numbers, and residents are saving renters $2,736 per year vs. the national median. For families with student loans, that cost gap is a second income.
177,563 residents · Colorado
Dive into Aurora's numbers: cost index 99 (12 points below national average), rent $1,689/month, income $84,320, and a home price of $458,953. The city's cost profile isn't flat — Housing is the cheapest category at 99, while Healthcare runs 100. With 177,563 residents, it balances mid-size city convenience with manageable costs.
170,376 residents · Colorado
A closer look at Fort Collins: the cost index of 115 — not a number you see very often, by the way — breaks down to a Healthcare index of 103 (strongest category) and a Housing index of 115 (weakest). Median rent is $1,970/month — 4% above the national median — while household income sits at $83,598, meaning locals spend about 28% of income on rent. That's within the recommended 30% threshold, though it doesn't leave much room (we double-checked this one).
155,961 residents · Colorado
Why Lakewood ranks #5: the numbers tell a clear story. At 101 on the cost index, residents save roughly 10% less than the typical American. Rent sits at $1,733/month while the median household pulls in $85,789/year. The Healthcare category is particularly strong at 100, though Housing (101) lags behind. Home prices average $565,592 — $98,222 above the national median (not adjusted for inflation, but still telling).
Cities are ranked by total population from the latest Census estimates. Growing populations typically signal economic opportunity — but also rising costs. We pair population data with affordability metrics for context. All data is sourced from federal agencies and verified research institutions. Cost of living indices are normalized to 100 (national median) using Zillow rent as the primary signal, with sub-category adjustments derived from regional BLS price data. Rankings are updated monthly as new data is released.
Denver ranks #1 in Colorado for this analysis with a cost index of 106 and median income of $91,681.
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.
Denver (ranked #1) has a cost index of 106 and rent of $1,818/mo, while Centennial (ranked #11) has a cost index of 120 and rent of $2,056/mo — a 14-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 Denver is $1,818/month as of 2026, based on Zillow's Observed Rent Index. This is $77 below the national median of $1,895/month.
The median home price in Denver is $530,920, which is 5.8× the local median income. Most median-income households would stretch to buy at this ratio. The national median home price is $467,370.
Colorado has a 4.4% state income tax rate. Combined state and local sales tax averages 7.81%, and the effective property tax rate is 0.49%.
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.