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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
Forget what you've heard — the data paints a different picture. 0 of 5 cities keep rent under 30% of $40K. The 30% rule — spending no more than 30% of gross income on housing — is the most widely cited benchmark for affordability. On a $40K salary, 0 cities (0%) meet this threshold. That's a tough m…
#1 Ranked: Gresham — cost index 93, rent $1,594/mo, income $73,608
0 of 5 cities keep rent under 30% of $40K
0 of 5 cities keep rent under 30% of $40K gross income
Data sourced from Census Bureau, Zillow, BLS, and Tax Foundation — current as of 2026
Forget what you've heard — the data paints a different picture. 0 of 5 cities keep rent under 30% of $40K. The 30% rule — spending no more than 30% of gross income on housing — is the most widely cited benchmark for affordability. On a $40K salary, 0 cities (0%) meet this threshold. That's a tough market.
The 30% rule — spending no more than 30% of gross income on housing — is the most widely cited benchmark for affordability. On a $40K salary, 0 cities (0%) meet this threshold. That's a tough market. We ran the numbers on 5 cities in Oregon using 2026 census, rent, and salary data. Gresham comes out on top — here's the full ranking and analysis.
Gresham earns its position at #1 through a combination that's hard to replicate. The 93 cost index sits 18 points below the national baseline, and the $73,608 median income means purchasing power here is amplified by the low cost base. Homes list at $463,410 — $3,960 below the national median — a genuine ownership opportunity. On the cost side, Housing leads the way at 93, while Healthcare trails at 99.
Worth noting: The 5 cities we track in Oregon paint a clearly affordable picture. Average cost index: 102. Median rent: $1,752/month. Household income: $80,269. Oregon is known for Portland premium contrasting with inland bargains — and the data backs that reputation convincingly.
Bottom line: Gresham 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.
| City | State Tax | Sales Tax | Property Tax | Est. Take-Home |
|---|---|---|---|---|
1Gresham | 9.9% | 0% | 0.87% | $28,412 |
2Salem | 9.9% | 0% | 0.87% | $28,412 |
3Portland | 9.9% | 0% | 0.87% | $28,412 |
4Hillsboro | 9.9% | 0% | 0.87% | $28,412 |
5Eugene | 9.9% | 0% | 0.87% | $28,412 |
110,685 residents · Oregon
A closer look at Gresham: the cost index of 93 — for better or worse — breaks down to a Housing index of 93 (strongest category) and a Healthcare index of 99 (weakest). And with some exceptions, median rent is $1,594/month — 16% below the national median — while household income sits at $73,608, meaning locals spend about 26% of income on rent. That's within the recommended 30% threshold, though it doesn't leave much room.
177,432 residents · Oregon
A closer look at Salem: the cost index of 93 — we had to double-check this one — breaks down to a Housing index of 93 (strongest category) and a Healthcare index of 99 (weakest). Median rent is $1,600/month — 16% below the national median — while household income sits at $71,900, meaning locals spend about 27% of income on rent. That's within the recommended 30% threshold, though it doesn't leave much room.
630,498 residents · Oregon
The #3 spot goes to Portland, and the breakdown explains why. Renters here pay $1,710/month — saving renters $2,220 per year compared to the national average. Meanwhile, Healthcare is the standout at index 100, keeping costs manageable. The weak spot? Healthcare at 100. At a 23% rent-to-income ratio, there's genuine breathing room in the average household budget (and that gap widens if you factor in state taxes).
107,730 residents · Oregon
Why Hillsboro ranks #4: the numbers tell a clear story. At 109 on the cost index, residents save roughly 2% less than the typical American. Rent sits at $1,869/month while the median household pulls in $103,207/year. The Healthcare category is particularly strong at 102, though Housing (109) lags behind. Home prices average $516,726 — $49,356 above the national median.
177,899 residents · Oregon
Real talk: the #5 spot goes to Eugene, and the breakdown explains why. Renters here pay $1,988/month — we had to double-check this one — — costing renters $1,116 more per year compared to the national average. Meanwhile, Healthcare is the standout at index 103, keeping costs manageable. The weak spot? Housing at 116. The 37% rent-to-income ratio is a pressure point — for median earners, housing takes more than recommended.
Gresham ranks #1 in Oregon for this analysis with a cost index of 93 and median income of $73,608.
Yes. On a $40K salary in Gresham, rent would consume about 48% of your gross monthly income. Financial experts recommend keeping rent under 30%. It's tight — consider a roommate or nearby suburb.
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.
Gresham (ranked #1) has a cost index of 93 and rent of $1,594/mo, while Eugene (ranked #5) has a cost index of 116 and rent of $1,988/mo — a 23-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 Gresham is $1,594/month as of 2026, based on Zillow's Observed Rent Index. This is $301 below the national median of $1,895/month.
After federal taxes, FICA (7.65%), and 9.9% state income tax, estimated take-home on $40K in Gresham is approximately $28,412/year ($2,368/month). After median rent of $1,594/month, you'd have roughly $9,284/year for all other expenses.
The median home price in Gresham is $463,410, which is 6.3× the local median income. Most median-income households would stretch to buy at this ratio. The national median home price is $467,370.
Oregon has a 9.9% state income tax rate. Combined state and local sales tax averages 0%, and the effective property tax rate is 0.87%.
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.