How much do you need to live comfortably in the top 50 US cities? (2023)

There is no single answer to the question of how much money you need to earn.live comfortablyBut a common rule of thumb in budgeting is the 50/30/20 rule, whereby half of your income goes to necessities, 20% to savings and investments, and 30% to spending and fun.

For most Americans, this is a pretty reasonable approach to defining a living wage, but many people in America's largest cities are probably reading this and thinking, "Are you crazy? Half of my income doesn't even cover the rent and I live in a renovated bar".

And it's true: the amount of money it takes to live comfortably is often much higher in a big city, putting the 50/30/20 rule out of reach for most city dwellers. That's why the new GOBankingRates study determines how much you need to earn to live comfortably in major US cities, based on the purchase or rental price of a home.

Using Zillow to calculate housing costs in the top 100 cities and Sperling's Best Places to estimate prices for other necessities like transportation, groceries, and health care, the bottom line gives a clear idea of ​​how much you need to contribute to stay within the 50/30 rule 20 on average spending levels in each category. We compared the results to the 50 places that had the lowest needed income for homeowners and listed them alphabetically rather than by financial ranking. Given that the median salary in most of the listed US cities is well below what is needed to live comfortably, the study should make it clear that many US city dwellers likely need make cuts elsewhere to be able to live in your city. So if you're thinking of moving to a bigger city,Read on to see the ideal salary and cost of living in some American cities..

• average income:53 992 $
• Required income if you are a homeowner:84 715,84 USD
• Required income if you are a renter:82 598,35 USD

Albuquerque won't top any city-by-city salary comparison with a median income of nearly $54,000, below the US median wage. A homeowner or renter will need about $30,000 more to live comfortably in Albuquerque.

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• average income:66 963 $
• Required income if you are a homeowner:92 769,34 USD
• Required income if you are a renter:95 750,86 USD

Arlington residents face a nearly $30,000 disparity when it comes to living comfortably, whether they own or rent. In Arlington, the first of nine Texas cities included in the study, Arlington homeowners will pay about $1,500 less for annual necessities than renters.

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• average income:$90,203
• Required income if you are a homeowner:76 828,79 USD
• Required income if you are a renter:95 329,89 USD

To live in Baltimore, you can afford to buy a home more comfortably than rent it, and the income needed to own a home is almost $20,000 less than renting. Median household income covers the amount needed to own a home with about $13,000 left over.

• average income:52 087 $
• Required income if you are a homeowner:80 339,85 USD
• Required income if you are a renter:87 457,11 USD

Baton Rouge has the lowest median household income in the study, making a comfortable lifestyle difficult for both homeowners and renters. Income falls around $28,000 for homeowners, $35,000 for renters.

• average income:74 314 $
• Required income if you are a homeowner:78 341,61 USD
• Required income if you are a renter:83 684,06 $

Owning a home in Buffalo is an affordable option, with a median household income of around $74,300, only about $4,000 less than the amount needed to live comfortably. That's a bigger stretch for renters who are nearly $10,000 short for a comfortable Buffalo lifestyle.

• average income:62 097 $
• Required income if you are a homeowner:85 326,41 USD
• Required income if you are a renter:75 702,41 USD

The Windy City isn't particularly expensive compared to other urban areas in the top five, but its relatively modest median income means many residents are still likely to struggle to make ends meet. The median salary in Chi-town is more than $23,000 below the cost of living comfortably if they own it. As for the tenants, they will need a little over $13,000 more.

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• average income:62 262 $
• Required income if you are a homeowner:76 551,28 USD
• Required income if you are a renter:81 751,79 USD

The income necessary for a comfortable lifestyle in Cincinnati is $14,000 higher than the median income for homebuyers and $19,000 for renters. Ohio offers more affordable options

• average income:62 262 $
• Required income if you are a homeowner:58 578,23 USD
• Required income if you are a renter:78 546,75 USD

The cost of living in Cleveland ranks first in the study of the profitability of buying a home in a big city. Homeowners need about $59,000 to buy a home and live comfortably, less than the median income. In Cleveland it makes more sense to buy than to rent; renters need about $16,000 more in income to live without financial worries.

• average income:59 318 $
• Required income if you are a homeowner:75 019,67 USD
• Required income if you are a renter:81 626,05 $

The South Carolina city has a median income of almost $60,000 a year. While that sounds like a decent salary, it's also nearly $16,000 less than you need to live comfortably for buyers and more than $21,000 less than renters need.

• average income:62 262 $
• Required income if you are a homeowner:78 796,99 $
• Required income if you are a renter:83 091,81 USD

Median household income in Ohio's capital city is more than $16,000 below the amount needed to live comfortably for homeowners. Renters will need to earn about $21,000 more than the city median income to live comfortably.

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• average income:66 963 $
• Required income if you are a homeowner:72 616,15 USD
• Required income if you are a renter:80 935,22 USD

Corpus Christi is closer to having a median income equal to the living wage than most cities surveyed. Homeowners are just under $6,000 short of what they need, while homeowners need an additional $14,000. These numbers are better than many other Texas cities.

• average income:66 963 $
• Required income if you are a homeowner:94 140,50 $
• Required income if you are a renter:96 985,28 USD

With an average income of $67,000 a year in a dynamic housing market, Dallas probably makes the costs much more difficult to bear than other cities. Median-income earners who rent can be particularly hard-pressed, with incomes above $30,000. Homeowners aren't doing well either, losing about $28,000 for a comfortable lifestyle.

• average income:63 498 $
• Required income if you are a homeowner:72 591,59 USD
• Required income if you are a renter:95 114,31 USD

Detroit is another city on this list that pays more to rent than to own, by a wide margin. Renters lose about $32,000 each year for necessities. Shopping in Detroit is a much better idea, with an income discrepancy of just $9,000.

• average income:61 972 $
• Required income if you are a homeowner:94 422,53 USD
• Required income if you are a renter:88 986,22 USD

Durham is one of the cities where your bottom line is better if you rent, with about $5,500 less income needed for a comfortable rental. Even so, a median income of nearly $62,000 will leave renters with around $27,000 in the salary department.

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• average income:66 963 $
• Required income if you are a homeowner:73 443,37 USD
• Required income if you are a renter:84 376,88 USD

Since homeowners must earn less than $74,000 a year to live comfortably in El Paso, the difference to median income is less than $7,000. Renters are in a less favorable position with a shortfall of nearly $18,000 a year.

• average income:62 743 $
• Required income if you are a homeowner:71 279,04 $
• Required income if you are a renter:72 800,81 USD

Both Fort Wayne buyers and renters must earn about $72,000 a year, give or take, to have a comfortable lifestyle. Unfortunately, about $10,000 is missing on both sides.

• average income:66 963 $
• Required income if you are a homeowner:91 619,96 USD
• Required income if you are a renter:96 312,96 USD

Like residents of nearby Arlington and Dallas, people living in Fort Worth face a significant shortfall in income and housing costs. In all three Texas locations, both homeowners and renters need an income in the range of $90,000 or more to live comfortably, but the median income is less than $67,000.

• average income:61 972 $
• Required income if you are a homeowner:74 551,33 USD
• Required income if you are a renter:78 689,38 USD

If you have a mortgage in Greensboro, you'll need almost $75,000 in income to comfortably fit your 50/30/20 budget, almost $79,000 if you're renting. This compares to a median income that falls below $62,000.

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• average income:66 963 $
• Required income if you are a homeowner:86 846,67 USD
• Required income if you are a renter:93 648,13 USD

The fourth largest city in the country is more expensive for renters than for buyers. You will need to earn about $7,000 more per year to live comfortably while renting than if you own. Either way, with a median income of around $67,000, the average Houstonian falls well below either of these levels.

• average income:62 743 $
• Required income if you are a homeowner:75 320,90 $
• Required income if you are a renter:81 300,66 $

The cost of living in the Upper Midwest is lower, and Indianapolis is not following this trend. While still well above the median income of $62,743 a year, the income you need to live comfortably in your own home is over $75,000 a year.

• average income:63 062 $
• Required income if you are a homeowner:89 064,72 USD
• Required income if you are a renter:92 494,86 USD

If your goal is to live in sunny Florida, you need to earn more than the median income of $63,062 to fit Jacksonville's 50/30/20 formula. Homeowners need earnings of just over $89,000 and renters need around $92,500.

• average income:61 847 $
• Required income if you are a homeowner:76 759,54 USD
• Required income if you are a renter:80 738,51 USD

The gap between the income needed to live comfortably and Kansas City's median annual income of $61,847 is smaller than in many other cities for both renters and homeowners. But it's not small either. The typical homeowner is $15,000 below what he needs to live comfortably, while the typical renter is $19,000 below that.

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• average income:59 695 $
• Required income if you are a homeowner:85 926,67 $
• Required income if you are a renter:87 402,62 USD

Tennessee has become the state of choice for many Americans looking for greener pastures. Still, it's one of 10 places in the study with a median income under $60,000, which is more than $25,000 less than what homeowners or renters need for a more comfortable lifestyle.

• average income:63 062 $
• Required income if you are a homeowner:83 575,98 USD
• Required income if you are a renter:90 690,88 USD

The second of the two Florida cities named in the study, Lakeland has a median income of about $63,000. Homeowners earning this amount are about $20,000 less than the 50/30/20 income standard; renters have approximately $27,000 discount.

• average income:55 573 $
• Required income if you are a homeowner:82 007,75 USD
• Required income if you are a renter:81 206,87 $

If you have a mortgage in Lexington, you need about $82,000 a year to live comfortably; that figure is about $800 less for renters. The median income, however, is one of the lowest in the study at $55,573.

• average income:66 817 $
• Required income if you are a homeowner:81 850,46 USD
• Required income if you are a renter:79 545,52 USD

Median salaries in Lincoln bring in around $67,000 a year, which isn't as far off target earnings as in most other cities. Renters incur lower costs than homeowners, needing about $2,200 less - $79,545.52 - than those who buy their homes.

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• average income:55 573 $
• Required income if you are a homeowner:79 414,01 $
• Required income if you are a renter:82 158,44 USD

The relatively modest cost of living in Louisville contributes to a comfortable living income, which is less than $82,200 for both renters and buyers. However, the median income is just under $56,000.

• average income:66 963 $
• Required income if you are a homeowner:70 856,31 USD
• Required income if you are a renter:79 114,06 $

Lubbock is one of the most affordable cities in the study. About $70,000 is enough for a comfortable stay for the owner and $80,000 for the tenant. A median income of around $67,000 puts Lubbock homeowners within reach.

• average income:67 125 $
• Required income if you are a homeowner:96 322,10 $
• Required income if you are a renter:83 713,40 USD

Wisconsin's capital city is much friendlier to renters than it is to homebuyers. Renters must earn about $13,000 less than homeowners to meet the 50/30/20 goal.

• average income:59 695 $
• Required income if you are a homeowner:66 723,17 USD
• Required income if you are a renter:81 252,41 USD

Memphis is another city where residents are close to striking that fine balance between needs and savings. While you need about $67,000 a year to live comfortably there as a homeowner, the median salary in the city is almost $60,000 a year. However, the tenants are short about $21,500.

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• average income:67 125 $
• Required income if you are a homeowner:73 602,04 USD
• Required income if you are a renter:81 452,37 USD

The cost of living in Milwaukee is relatively modest, with a median income of $67,125. That leaves homeowners about $6,000 less than that comfort level. Renters have a tougher time with a discrepancy of around $14,000.

• average income:77 720 $
• Required income if you are a homeowner:91 149,38 USD
• Required income if you are a renter:90 048,77 USD

Minneapolis is a relatively prosperous city, especially when compared to other major urban areas in the Upper Midwest. However, despite the higher median income, the cost of living is also relatively high. That puts the average Minneapolis salaryman about $14,000 below what he needs to live comfortably if he owns, slightly less if he rents.

• average income:52 087 $
• Required income if you are a homeowner:88 471,83 USD
• Required income if you are a renter:99 090,08 $

The Big Easy is not for its low-income residents, and there are likely many with a median income of less than $52,000 a year. Both homeowners and renters have too little income to live comfortably: around $36,000 for homeowners and up to $47,000 for renters.

• average income:55 826 $
• Required income if you are a homeowner:74 721,92 USD
• Required income if you are a renter:80 211,20 $

Oklahoma City has relatively modest costs compared to most major cities. But combine that with a median income of around $56,000 a year, and the gap for a comfortable income if you own your own home is still around $19,000. It's an even bigger difference if you're renting for nearly $25,000 more than the median income.

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• average income:66 817 $
• Required income if you are a homeowner:81 651,59 USD
• Required income if you are a renter:79 302,25 USD

Another city where renters are closer to earning what landlords would need, Omaha's median income of $66,817 is more than $12,000 a year less than you need to live comfortably while renting. If you pay off your mortgage, you will lose almost $15,000.

• average income:68 957 $
• Required income if you are a homeowner:87 397,04 USD
• Required income if you are a renter:105 516,18 USD

Brotherly love may not cost anything, but living in Philadelphia certainly costs money. Despite a median income of nearly $69,000 a year, the salary needed to live comfortably under the 50/30/20 rule is about $37,000 higher for renters. The number drops to just over $18,000 for homeowners.

• average income:68 957 $
• Required income if you are a homeowner:78 820,61 USD
• Required income if you are a renter:87 205,08 $

Steel City's relatively low maintenance costs mean the 50/30/20 budget rule is not out of reach for many of its residents. Homeowners are less than $12,000 short of what they need to live comfortably based on a median income of $68,957, while renters are more than $18,000 short.

• average income:80 963 $
• Required income if you are a homeowner:87 674,73 USD
• Required income if you are a renter:83 832,98 USD

With a median income of around $81,000 a year, Richmond is a financially strong place to live, especially for renters. Necessary income to live comfortably is less than $84,000 for renters and less than $88,000 for homeowners.

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• average income:74 314 $
• Required income if you are a homeowner:74 429,37 USD
• Required income if you are a renter:83 420,73 USD

Located in the western part of the state, Rochester offers one of the best deals in New York. The relatively high median income of $74,314 is only $115 less than the income homeowners need to live comfortably. If you are renting, you will need about $9,000 more.

• average income:61 847 $
• Required income if you are a homeowner:68 658,52 USD
• Required income if you are a renter:80 640,64 USD

Living in St. Louis won't make the most money: The median income is almost $62,000, but the income needed to own a home and live comfortably is one of the lowest in the study, at less than $69,000. For renters, it's almost $81,000.

• average income:77 720 $
• Required income if you are a homeowner:85 412,47 USD
• Required income if you are a renter:85 396,27 USD

Like its partner city, Minneapolis, Saint Paul has a median income of approximately $78,000. However, home prices are lower in Saint Paul. There, whether you rent or own, you have to make about $85,000, less than Minneapolis's $91,000.

• average income:66 963 $
• Required income if you are a homeowner:81 436,20 $
• Required income if you are a renter:85 167,34 USD

San Antonio is a relatively affordable place to live, with enough income to live comfortably on a mortgage payment of just over $81,000 a year. That represents a gap of about $15,000 from the median income if you own it, but increases to about $19,000 for renters.

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• average income:84 247 $
• Required income if you are a homeowner:92 263,26 $
• Required income if you are a renter:82 331,62 USD

Renters in Spokane are in excellent shape, with rents (and meeting the 50/30/20 formula) below the median income of $84,247. At the end of the year, renters may have about $2,000 more to save. Homeowners are not so lucky, with a shortfall of about $8,000.

• average income:66 963 $
• Required income if you are a homeowner:93 621,06 $
• Required income if you are a renter:98 052,66 USD

The cost of living comfortably in the spring is much higher than in San Antonio, where median wages are similar. You are looking at a shortfall of $27,000 if you own a home and $31,000 and change if you are renting.

• average income:63 062 $
• Required income if you are a homeowner:83 277,83 USD
• Required income if you are a renter:83 830,28 USD

Homeowners or renters will need $83,000 to achieve this lifestyle goal. The trick will be to achieve it with an average income that registers just over $63,000.

• average income:62 262 $
• Required income if you are a homeowner:58 939,51 USD
• Required income if you are a renter:72 689,25 USD

Toledo is second only to Cleveland for the best financial life. A homeowner needs an income of less than $59,000 a year to maintain a comfortable lifestyle, and the median income actually exceeds $62,000. If you are a renter, your income will be reduced by about $10,000.

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• average income:69 056 $
• Required income if you are a homeowner:87 509,26 USD
• Required income if you are a renter:85 054,18 USD

The income needed to live comfortably in Tucson averages $80,000, whether you rent or own. Unfortunately, income in Tucson is less than $70,000 a year, leaving a gap of more than $15,000 in annual earnings.

• average income:55 826 $
• Required income if you are a homeowner:72 582,45 USD
• Required income if you are a renter:78 248,85 USD

Tulsa is one of the most affordable cities in this study, with a comfortable living income of less than $80,000 for homeowners and renters. Since the median income of $55,826 is relatively low, you still need about $17,000 more to cover your mortgage and other basic needs—$23,000 if you're renting.

• average income:64 124 $
• Required income if you are a homeowner:70 297,51 USD
• Required income if you are a renter:71 261,37 USD

Wichita is a win-win when it comes to buying real estate; You'll need just over $70,000 in annual income to pay off your mortgage and save a lot of money. Tenants will only need $1,000 more. Given that the median income is just over $64,000, the difference is not huge.

• average income:61 972 $
• Required income if you are a homeowner:74 049,55 USD
• Required income if you are a renter:83 617,76 USD

The income needed for a homeowner to live comfortably in Winston-Salem is significantly lower than in Durham, eastern North Carolina—about $20,000 less. Still, if he owns a home, he'll lose about $13,000 less than he needs to maintain a 50/30/20 budget for a renter instead of going up to $21,000.

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Jordana RosenfeldaIjamie farkascontributed to this article.

Methodology: To find out how much you need to live comfortably in major US cities, GOBankingRates analyzed the 100 most populous US cities based on the following factors; (1) April 2023 home values ​​for single-family homes, (2) April 2023 rental prices, both from Zillow, cost of living indexes for each city by expense; (3) Grocery Cost of Living Index, (4) Transportation Cost of Living Index, (5) Health Care Cost of Living Index, (6) Utilities Cost of Living Index, all from Sperlings' BestPlaces. These ratios were multiplied by the median annual cost of spending for each category, as reported by the Federal Reserve Bank of St. Louis 2021 Annual Spending. Taking all of these factors into account, GOBankingRates used the 50/30/20 rule to calculate the required salary someone would need to earn to live comfortably in each city and sorted the data to show the lowest to highest salaries needed to buy a home. . All information is correct as of May 15, 2023.