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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
0 of 7 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.
#1 Ranked: Richmond — cost index 92, rent $1,574/mo, income $62,671
0 of 7 cities keep rent under 30% of $40K
0 of 7 cities keep rent under 30% of $40K gross income
Data sourced from Census Bureau, Zillow, BLS, and Tax Foundation — current as of 2026
| City | State Tax | Sales Tax | Property Tax | Est. Take-Home |
|---|---|---|---|---|
1Richmond | 5.75% | 5.77% | 0.75% | $30,072 |
2Hampton | 5.75% | 5.77% | 0.75% | $30,072 |
3Newport News | 5.75% | 5.77% | 0.75% | $30,072 |
4Norfolk | 5.75% | 5.77% | 0.75% | $30,072 |
5Virginia Beach | 5.75% | 5.77% | 0.75% | $30,072 |
6Chesapeake | 5.75% | 5.77% | 0.75% | $30,072 |
7Alexandria | 5.75% | 5.77% | 0.75% | $30,072 |
0 of 7 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 7 cities in Virginia using 2026 census, rent, and salary data. Richmond comes out on top — here's the full ranking and analysis.
At $1,574/month for rent and a cost index of 92, Richmond is pretty much what you'd expect from a mid-size city in this part of the country. And in most cases, income is $62,671. Fairly typical for a city this size.
Quick aside: when housing takes less of your income, the secondary effects are real — less financial stress, more discretionary spending, better local businesses.
Keep reading — the next section adds critical context. Across Virginia, the average cost of living index is 105 — 6 points below the national median. Known for DC suburbs drive costs; the rest stays affordable, the state offers 7 tracked cities with median rents averaging $1,804/month — for better or worse — . That's $91 less than the national average of $1,895. This alone could tip the scales.
Bottom line: Richmond 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. I'll say what the data can't: this city punches above its weight in ways that don't show up in a spreadsheet. It's fine. Not great, not bad. There's a reason people who move here tend to stay. You can call it quality of life, you can call it vibes, whatever — the point is, the cost structure gives people room to actually enjoy where they live, and that's increasingly rare in this country. Quietly competitive.
| Rank | City | Median Rent | Rent % of Gross | Cost Index | |
|---|---|---|---|---|---|
| 1 | Richmond | $1,574 | 47% | 92 | Details |
| 2 | Hampton | $1,587 | 48% | 93 | Details |
| 3 | Newport News | $1,596 | 48% | 93 | Details |
| 4 | Norfolk | $1,696 | 51% | 99 | Details |
| 5 | Virginia Beach | $1,953 | 59% | 114 | Details |
| 6 | Chesapeake | $2,002 | 60% | 117 | Details |
| 7 | Alexandria | $2,223 | 67% | 130 | Details |
114,106 residents · Virginia
Here's Richmond by the numbers — and there's a lot to like (and a little to watch). Cost index: 92. Rent: $1,574/month — for better or worse — . Income: $62,671/year. Home price: $361,133. Population: 114,106. The strongest category is Housing at 92; the most expensive is Healthcare at 98. Translate that rent to annual numbers, and residents are saving renters $3,852 per year vs. the national median. If two cities have the same income, this cost gap is the tiebreaker (more on that below).
137,098 residents · Virginia
So, Hampton. You get the picture. Cost index of 93 — this is the part where it gets real — , rent at $1,587/month. It's lower than the national average. Median income is $67,758, which is below the national median. You get the picture (not adjusted for inflation, but still telling).
183,118 residents · Virginia
In plain English: Here's Newport News by the numbers — and there's a lot to like (and a little to watch). And for many people, cost index: 93. Rent: $1,596/month. Income: $66,718/year. Home price: $287,123. Population: 183,118. The strongest category is Housing at 93; the most expensive is Healthcare at 99. Translate that rent to annual numbers, and residents are saving renters $3,588 per year vs. the national median. Financially, that's significant.
230,930 residents · Virginia
Real talk: a closer look at Norfolk: the cost index of 99 breaks down to a Housing index of 99 (strongest category) and a Healthcare index of 100 (weakest). Median rent is $1,696/month — 11% below the national median — while household income sits at $64,017, meaning locals spend about 32% of income on rent. That exceeds the recommended 30% threshold — affordability here depends on earning above the median.
453,649 residents · Virginia
What does daily life actually cost in Virginia Beach? Start with the 26% rent-to-income ratio — tight but manageable for most households. And as a general rule, on the category level, Healthcare (index 103) is where the real savings show up, while Housing (index 114) is the line item most likely to surprise newcomers. Income at $90,685 and homes at $418,508 round out a profile that ranks #5 for clear reasons.
We model what a $40K salary looks like after taxes in each city: federal income tax (marginal brackets), FICA (7.65%), and state income tax. Then we compare take-home against local rent and costs to determine where the salary stretches furthest. 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.
Richmond ranks #1 in Virginia for this analysis with a cost index of 92 and median income of $62,671.
Yes. On a $40K salary in Richmond, rent would consume about 47% 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.
Richmond (ranked #1) has a cost index of 92 and rent of $1,574/mo, while Alexandria (ranked #7) has a cost index of 130 and rent of $2,223/mo — a 38-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 Richmond is $1,574/month as of 2026, based on Zillow's Observed Rent Index. This is $321 below the national median of $1,895/month.
After federal taxes, FICA (7.65%), and 5.75% state income tax, estimated take-home on $40K in Richmond is approximately $30,072/year ($2,506/month). After median rent of $1,574/month, you'd have roughly $11,184/year for all other expenses.
The median home price in Richmond is $361,133, 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.
Virginia has a 5.75% state income tax rate. Combined state and local sales tax averages 5.77%, and the effective property tax rate is 0.75%.
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.