Across the South, there’s no shortage of cities proving that residents don’t have to choose between high salaries and affordable living — especially in Texas.
The Lone Star State places nine cities in a new top 20 list compiled by GOBankingRates, which ranks the South’s best blends of strong median incomes and relatively low living costs. Maryland has five entries in the list, followed by Tennessee with three.
The analysis evaluated cities with at least 20,000 residents and median household incomes above the national average of $81,604. Researchers incorporated home values from Zillow, cost-of-living data from Sperling’s BestPlaces, and mortgage estimates based on national interest rates. By weighting income more heavily than expenses, the ranking highlights places where residents not only earn more but also keep more of what they earn.
Among the 20 cities listed, median household incomes range from $89,000 to $203,000. Annual living costs range from about $40,000 to as high as $85,000.
Here’s the top 20, along with key figures for each city.
Methodology: For this study, GOBankingRates analyzed cities across the United States to identify the best places that combine high salaries with a low cost of living. GOBankingRates first identified cities with at least 20,000 residents and median household incomes above the national average of $81,604, based on the U.S. Census 2023 five-year ACS. Additional demographic data, including the population age 65 and older and total households, also came from the ACS. To ensure affordability, home values were sourced from the Zillow Home Value Index, and any city with a typical home price of $1 million or more was excluded. Cost-of-living indexes from Sperling’s BestPlaces were paired with national average expenditure data from the Bureau of Labor Statistics Consumer Expenditure Survey to estimate local spending levels. Average mortgage payments were calculated using a 10% down payment and the national 30-year fixed mortgage rate from Federal Reserve Economic Data. These mortgage and expenditure estimates were combined to determine each city’s total cost of living, and a livability index from AreaVibes was included as supplemental context. For scoring, average mortgage cost and average expenditure cost were each weighted at 1.00, and median household income was weighted at 1.30. The resulting scores were summed and ranked to highlight cities offering strong incomes relative to living costs. All data reflects conditions as of Dec. 19, 2025.
