How It Works

How Expensive Is turns official government data into a single, comparable picture of what it costs to live in each U.S. city. Every figure on the site traces back to a federal dataset, so you can trust the numbers and check them yourself. This page explains exactly how we build the cost-of-living index, the rent figures, and the salary estimates.

Unlike crowd-sourced sites, we don't rely on users typing in prices. And unlike the big finance portals, we don't sit behind a paywall or use proprietary survey data. Everything here comes from the U.S. Bureau of Economic Analysis, the Census Bureau, and the Department of Housing and Urban Development.

The Cost of Living Index

The headline index comes from the Bureau of Economic Analysis Regional Price Parities (RPP). The RPP measures the price level of an area as a percentage of the national average, where 100 equals the U.S. average. A city at 115 is about 15% more expensive overall; a city at 90 is about 10% cheaper. We show the overall index plus its breakdown into housing, goods, and other services.

Rent and Housing

Two sources cover housing. Median gross rent and median home value come from the Census Bureau's American Community Survey, which reflects what residents actually report paying. Rent by apartment size, from a studio to four bedrooms, comes from HUD Fair Market Rents, the same benchmarks used in federal housing programs.

Salary Needed

The "salary needed" estimate is our own calculation built on top of the public data. We start with the HUD Fair Market Rent for the relevant apartment size, then apply the widely used rule that housing should not exceed 30% of gross income. We adjust the remaining living costs to the local price level using the BEA index. We publish two profiles: a single person in a one-bedroom, and a family of four in a three-bedroom.

What These Figures Are Not

Our numbers are estimates for general guidance, not personal financial advice. They describe typical conditions for an area and won't match every household, since real costs depend on lifestyle, debt, childcare, and many other factors. Always confirm important decisions with a qualified professional and your own budget.