Best U.S. Cities for Affordable Living and Good Pay in 2026

With many Americans struggling with rising prices in 2026, a new study by Niche.com has identified the best cities in the country where residents can earn good money while keeping their living costs low.

How the Study Worked

Niche.com, an education research platform, looked at large U.S. cities with at least 250,000 residents. They ranked these cities based on two factors, weighted equally:

• Affordability (how cheap it is to live there)
• Median household income (how much money families typically earn)

The study used data from the Bureau of Labor Statistics.

The Winner: Laredo, Texas

Laredo, Texas came out on top as the best city for high pay and low living costs. Located on the southern border with Mexico, Laredo has about 257,600 residents. The city features many parks, well-regarded public schools, and a suburban atmosphere where most people own their homes.

This isn't Laredo's first time in the spotlight—it was also named the most affordable U.S. city in 2025 by GoBankingRates.

Top 25 Cities for Affordable Living and High Income

Here's the complete list:

1. Laredo, Texas
2. Fort Wayne, Indiana
3. Toledo, Ohio
4. El Paso, Texas
5. Wichita, Kansas
6. Corpus Christi, Texas
7. Oklahoma City, Oklahoma
8. Tulsa, Oklahoma
9. Louisville, Kentucky
10. Indianapolis, Indiana
11. Memphis, Tennessee
12. Lubbock, Texas
13. Cleveland, Ohio
14. Plano, Texas
15. Detroit, Michigan
16. Winston-Salem, North Carolina
17. St. Louis, Missouri
18. San Antonio, Texas
19. Lexington, Kentucky
20. Pittsburgh, Pennsylvania
21. Greensboro, North Carolina
22. Lincoln, Nebraska
23. Irving, Texas
24. Buffalo, New York
25. Fort Worth, Texas

What This Means for Americans

Allison Shrivastava, an economist at Niche, explained why these cities are attractive: "People are increasingly looking for neighborhoods that offer both access to diverse career opportunities and a strong sense of community.

These smaller, walkable communities provide the mix of amenities and livability that families and young professionals both value."

Where Are Americans Moving?

While jobs, family, and mortgages may prevent many people from relocating, recent U.S. Census Bureau data shows clear trends in population movement.

States losing the most residents:

• California
• New Mexico
• Hawaii
• West Virginia
• Vermont

States gaining the most residents (July 2024 to July 2025):

• Idaho
• Utah
• Texas
• South Carolina
• North Carolina