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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.
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.
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 | Cost Index | Median Rent | |
|---|---|---|---|---|
| 1 | Denver | 106 | $1,818 | Details |
| 2 | Colorado Springs | 97 | $1,667 | Details |
| 3 | Aurora | 99 | $1,689 | Details |
| 4 | Fort Collins | 115 | $1,970 | Details |
| 5 | Lakewood | 101 | $1,733 | Details |
| 6 | Thornton | 110 | $1,888 | Details |
| 7 | Arvada | 120 | $2,053 | Details |
| 8 | Westminster | 104 | $1,788 | Details |
| 9 | Greeley | 84 | $1,442 | Details |
| 10 | Pueblo | 77 | $1,316 | Details |
| 11 | Centennial | 120 | $2,056 | Details |
716,577 residents · Colorado
A closer look at Denver: the cost index of 106 breaks down to a Healthcare index of 101 (strongest category) and a Housing index of 106 (weakest). Median rent is $1,818/month — 4% below the national median — while household income sits at $91,681, meaning locals spend about 24% of income on rent. That's a healthy margin by any standard.
488,664 residents · Colorado
Colorado Springs earns its position at #2 through a combination that's hard to replicate. The 97 cost index sits 14 points below the national baseline, and the $83,198 median income means purchasing power here is genuinely above average. Homes list at $446,132 — $21,238 below the national median — a genuine ownership opportunity. On the cost side, Housing leads the way at 97, while Healthcare trails at 99.
177,563 residents · Colorado
Why Aurora ranks #3: the numbers tell a clear story. At 99 on the cost index, residents save roughly 12% less than the typical American. Rent sits at $1,689/month while the median household pulls in $84,320/year. The Housing category is particularly strong at 99, though Healthcare (100) lags behind. Home prices average $458,953 — $8,417 below the national median.
170,376 residents · Colorado
Here's Fort Collins by the numbers — and there's a lot to like. Cost index: 115. Rent: $1,970/month. Income: $83,598/year. Home price: $556,327. Population: 170,376. The strongest category is Healthcare at 103; the most expensive is Housing at 115. Translate that rent to annual numbers, and residents are costing renters $900 more per year vs. the national median. When healthcare costs are this low, the savings ripple across every other category.
155,961 residents · Colorado
What does daily life actually cost in Lakewood? Start with the 24% rent-to-income ratio — that's the kind of margin that lets people build savings. On the category level, Healthcare (index 100) is where the real savings show up, while Housing (index 101) is the line item most likely to surprise newcomers. Income at $85,789 and homes at $565,592 round out a profile that ranks #5 for clear reasons.
| City | State Tax | Sales Tax | Property Tax | Est. Take-Home |
|---|---|---|---|---|
1Denver | 4.4% | 7.81% | 0.49% | $65,411 |
2Colorado Springs | 4.4% | 7.81% | 0.49% | $65,411 |
3Aurora | 4.4% | 7.81% | 0.49% | $65,411 |
4Fort Collins | 4.4% | 7.81% | 0.49% | $65,411 |
5Lakewood | 4.4% | 7.81% | 0.49% | $65,411 |
6Thornton | 4.4% | 7.81% | 0.49% | $65,411 |
7Arvada | 4.4% | 7.81% | 0.49% | $65,411 |
8Westminster | 4.4% | 7.81% | 0.49% | $65,411 |
9Greeley | 4.4% | 7.81% | 0.49% | $65,411 |
10Pueblo | 4.4% | 7.81% | 0.49% | $65,411 |
Total tax burden = state income tax rate + combined sales tax rate + effective property tax rate. We rank cities from lowest combined burden to highest. Keep in mind property tax and sales tax are local-level, so two cities in the same state can differ meaningfully. 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.