Laredo, Texas Ranked as Top City for High Pay and Low Cost of Living

Northeast Ohio cities also make the top 15 in Niche.com study on most affordable metro areas.

Mar. 21, 2026 at 2:04pm

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According to a recent Niche.com study, Laredo, Texas was ranked as the top city in the U.S. for having the highest pay and lowest cost of living. The study, which analyzed data from the Bureau of Labor Statistics, also found that Fort Wayne, Indiana; Toledo, Ohio; El Paso, Texas; and Wichita, Kansas rounded out the top five most affordable metro areas with over 250,000 residents.

Why it matters

As the cost of living continues to rise across the country, this study provides valuable insights for Americans looking to find cities that offer both high-earning potential and affordable housing and living expenses. The findings highlight smaller, more walkable communities that can provide the right mix of career opportunities and community amenities.

The details

The Niche.com study ranked larger cities with at least 250,000 residents using a 50/50 weighting of affordability and median household income. Laredo, Texas, a border city with a population of around 257,600, was found to be the most affordable place in the U.S., offering residents a dense suburban feel with good public schools and most residents owning their own homes. Other top cities included Fort Wayne, Indiana; Toledo, Ohio; El Paso, Texas; and Wichita, Kansas.

  • The Niche.com study analyzed data from the Bureau of Labor Statistics for the 2026 year.
  • A previous GoBankingRates analysis found Laredo to be the most affordable city in the U.S. in 2025.

The players

Laredo, Texas

A border city in Texas with a population of around 257,600, known for its parks, good public schools, and high homeownership rates.

Niche.com

An education research platform that conducted the study on the best cities for low cost of living and high incomes.

Allison Shrivastava

An economist at Niche who commented on the study's findings.

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What they’re saying

“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.”

— Allison Shrivastava, Economist, Niche

The takeaway

This study highlights the growing demand for affordable, high-earning cities that can provide a balance of career opportunities and community amenities. As the cost of living continues to rise, these findings offer valuable insights for Americans seeking to maximize their earning potential while maintaining a reasonable cost of living.