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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
Portland breaks the usual trade-off between income and cost of living. Most affordable cities pay less — but Portland delivers a median household income of $88,792 (10% above the national median) while keeping costs 1 points below national average. That's a rare combination shared by only 36 of the …
Portland breaks the usual trade-off between income and cost of living. Most affordable cities pay less — but Portland delivers a median household income of $88,792 (10% above the national median) while keeping costs 1 points below national average. That's a rare combination shared by only 36 of the 288 cities we track.
If you remember nothing else from this page, remember this: Portland: high income, low cost — a rare combo. Portland earns above the national median ($88,792 vs $80,367) while keeping costs below average (index 111 vs 112). That combination is exceptionally rare — only 36 of 288 cities share it.
Portland earns its position at #1 through a combination that's hard to replicate. The 111 cost index sits 1 points below the national baseline, and the $88,792 median income means purchasing power here is genuinely above average. Homes list at $524,251 — $56,881 above the national median, reflecting the metro premium. On the cost side, Utilities leads the way at 102, while Housing trails at 128.
Tax burden isn't just income tax. We combine three layers: state income tax (9.9% in Portland), combined state+local sales tax (0%), and effective property tax (0.87%). At 9.9% state income tax, the real differentiator becomes sales and property tax rates. On a $75,000 salary, the estimated take-home in #1 Portland is $50,285/year.
Balance that against the cost side: Across Oregon, the average cost of living index is 110 — 2 points below the national median. Known for Portland premium contrasting with inland bargains, the state offers 5 tracked cities with median rents averaging $1,752/month. That's $143 less than the national average of $1,895. Over a five-year window, that difference is life-changing.
Bottom line: Portland 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: Portland — cost index 111, rent $1,710/mo, income $88,792
Portland: high income, low cost — a rare combo
3 of 5 cities come in below the national cost-of-living average of 112
Data sourced from Census Bureau, Zillow, BLS, and Tax Foundation — current as of 2026
630,498 residents · Oregon
Dive into Portland's numbers: cost index 111 (1 points below national average), rent $1,710/month, income $88,792, and a home price of $524,251. The city's cost profile isn't flat — Utilities is the cheapest category at 102, while Housing runs 128. As a major city with 630,498 residents, amenities and job markets are robust.
177,899 residents · Oregon
Eugene earns its position at #2 through a combination that's hard to replicate. The 113 cost index sits 1 points above the national baseline, and the $63,836 median income means purchasing power here is partially offset by higher costs. Homes list at $467,032 — $338 below the national median — a genuine ownership opportunity. On the cost side, Utilities leads the way at 104, while Housing trails at 133.
177,432 residents · Oregon
The #3 spot goes to Salem, and the breakdown explains why. Renters here pay $1,600/month — saving renters $3,540 per year compared to the national average. Meanwhile, Utilities is the standout at index 97, keeping costs manageable. The weak spot? Housing at 113. A 27% rent-to-income ratio keeps most households inside the safe zone.
110,685 residents · Oregon
Here's Gresham by the numbers — and there's a lot to like (and a little to watch). Cost index: 107. Rent: $1,594/month. Income: $73,608/year. Home price: $463,410. Population: 110,685. The strongest category is Utilities at 98; the most expensive is Housing at 117. Translate that rent to annual numbers, and residents are saving renters $3,612 per year vs. the national median. For anyone relocating from a high-cost market, this will feel like a raise.
107,730 residents · Oregon
A closer look at Hillsboro: the cost index of 114 breaks down to a Utilities index of 104 (strongest category) and a Housing index of 134 (weakest). Median rent is $1,869/month — 1% below the national median — while household income sits at $103,207, meaning locals spend about 22% of income on rent. That's a healthy margin by any standard (your mileage may vary — literally). A real contender.
Portland earns above the national median ($88,792 vs $80,367) while keeping costs below average (index 111 vs 112). That combination is exceptionally rare — only 36 of 288 cities share it.
The race is tight: Portland, Eugene, Salem, Gresham, Hillsboro are all within 3 points of each other. At this level, differences in rent, taxes, or a single category can sway the decision.
| City | State Tax | Sales Tax | Property Tax | Est. Take-Home |
|---|---|---|---|---|
1Portland | 9.9% | 0% | 0.87% | $58,622 |
2Eugene | 9.9% | 0% | 0.87% | $58,622 |
3Salem | 9.9% | 0% | 0.87% | $58,622 |
4Gresham | 9.9% | 0% | 0.87% | $58,622 |
5Hillsboro | 9.9% | 0% | 0.87% | $58,622 |
Portland ranks #1 in Oregon for this analysis with a cost index of 111 and median income of $88,792.
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.
Portland (ranked #1) has a cost index of 111 and rent of $1,710/mo, while Hillsboro (ranked #5) has a cost index of 114 and rent of $1,869/mo — a 3-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 Portland is $1,710/month as of 2026, based on Zillow's Observed Rent Index. This is $185 below the national median of $1,895/month.
The median home price in Portland is $524,251, which is 5.9× 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.