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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 11 points below national average. That's a rare combination shared by only 40 of the…
#1 Ranked: Portland — cost index 100, rent $1,710/mo, income $88,792
Portland: high income, low cost — a rare combo
4 of 5 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
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 11 points below national average. That's a rare combination shared by only 40 of the 288 cities we track.
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.
The #1 spot goes to Portland, and the breakdown explains why. And roughly speaking, 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.
The real story isn't in the ranking — it's in the details below. 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 100 vs 111). That combination is exceptionally rare — only 40 of 288 cities share it. The practical impact: more room for childcare, savings, or just breathing room.
What to do with this data: use the ranking as a shortlist, then dig into the city profiles for trend lines and category breakdowns. The difference between #1 and #5 is often smaller than the difference between "good on paper" and "actually fits my life." Compare your top picks with our calculator to see real take-home numbers.
630,498 residents · Oregon
Why Portland ranks #1: the numbers tell a clear story. At 100 on the cost index, residents save roughly 11% less than the typical American. Rent sits at $1,710/month while the median household pulls in $88,792/year. The Healthcare category is particularly strong at 100, though Healthcare (100) lags behind. Home prices average $524,251 — $56,881 above the national median.
177,899 residents · Oregon
What does daily life actually cost in Eugene? Start with the 37% rent-to-income ratio — stretched, especially for single earners. On the category level, Healthcare (index 103) is where the real savings show up, while Housing (index 116) is the line item most likely to surprise newcomers. Income at $63,836 and homes at $467,032 round out a profile that ranks #2 for clear reasons.
177,432 residents · Oregon
Salem earns its position at #3 through a combination that's hard to replicate. The 93 cost index sits 18 points below the national baseline, and the $71,900 — we had to double-check this one — median income means purchasing power here is amplified by the low cost base. Homes list at $432,341 — $35,029 below the national median — a genuine ownership opportunity. On the cost side, Housing leads the way at 93, while Healthcare trails at 99.
110,685 residents · Oregon
Here's Gresham by the numbers — and there's a lot to like (and a little to watch). And on balance, cost index: 93. Rent: $1,594/month. Income: $73,608/year. Home price: $463,410. Population: 110,685. 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 $3,612 per year vs. the national median. That's the kind of stat homebuyers should print out for their mortgage meetings.
107,730 residents · Oregon
The #5 spot goes to Hillsboro, and the breakdown explains why. Renters here pay $1,869/month — saving renters $312 per year compared to the national average. Meanwhile, Healthcare is the standout at index 102, keeping costs manageable. The weak spot? Housing at 109. At a 22% rent-to-income ratio, there's genuine breathing room in the average household budget.
| 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 |
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.
Portland ranks #1 in Oregon for this analysis with a cost index of 100 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 100 and rent of $1,710/mo, while Hillsboro (ranked #5) has a cost index of 109 and rent of $1,869/mo — a 9-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.