How to compare the cost of living between two cities

Step 1: Find the RPP for both cities

Navigate to the BEA Regional Price Parities page and download the LARPP dataset. Each row is a metro area; the overall RPP column is your primary number.

Alternatively, use our pre-compiled metro database — we have already extracted the RPP and HUD Fair Market Rent for the most commonly searched metros.

Step 2: Calculate the cost multiplier

Divide the destination RPP by the origin RPP:

Cost multiplier = destination RPP / origin RPP

If you are moving from Austin (RPP 95) to San Francisco (RPP 130), the multiplier is 130/95 = 1.368. Everything you buy in San Francisco will cost, on average, 36.8% more.

Step 3: Apply to your salary

Multiply your current salary by the cost multiplier to find the salary you need in the destination:

Equivalent salary = current salary x (dest RPP / origin RPP)

Earning $80,000 in Austin and moving to San Francisco? You need $80,000 x 1.368 = $109,440 to maintain the same standard of living.

Step 4: Look at the housing component separately

BLS also publishes a housing-specific RPP. If the housing RPP is much higher than the overall RPP, the city is expensive primarily because of housing. If overall and housing RPPs are similar, costs are broadly elevated.

This matters because if your employer provides housing or you have an unusual housing arrangement, you should use the non-housing RPP components for a better estimate.

Step 5: Check the HUD Fair Market Rent

For actual apartment budgeting, use the HUD Fair Market Rent for your bedroom count. FMR represents the 40th percentile of rents in a metro area — a reasonable planning figure for a mid-market apartment.

Common traps to avoid

• Comparing state averages to metro areas. RPP varies enormously within states. California's state RPP is very different from San Francisco's or Fresno's.
• Using salary surveys alone. Salary data tells you what employers pay, not what things cost. A high-wage city can still reduce your purchasing power if prices rise faster than wages.
• Ignoring state income tax. Moving to or from a no-income-tax state (Texas, Florida, Washington) can change your take-home pay by 3-10% and must be factored in.
• Anchoring on rent. Rent is visible and memorable, but healthcare, childcare, and transportation can account for 30-40% of total cost-of-living differences.

Use our city comparison tool to instantly calculate the equivalent salary for any two verified metros.