Methodology

Cost of Living Index

Our Cost of Living Index uses a weighted composite of local real estate market data, median rents, and non-housing price parities compared to the national baseline. Weightings emulate the Bureau of Labor Statistics (BLS) Consumer Expenditure Surveys (CEX) models.

Overall Index = (Housing × 0.35) + (Rent × 0.15) + (Goods × 0.20) + (Services × 0.20) + (Utilities × 0.10)

Data Origins & Baselines:

Housing Index (35%): Based on Zillow Home Value Index (ZHVI). Fallback to Census ACS.

Rent Index (15%): Based on Zillow Observed Rent Index (ZORI). Fallback to Census ACS.

Goods Index (20%): Based on BEA Metropolitan Area Regional Price Parities (MARPP) for goods/groceries.

Services Index (20%): Based on BEA MARPP for healthcare, transportation, and other services.

Utilities Index (10%): Based on BEA MARPP for local energy/water utility parities.

A composite score of 100 represents the national baseline used by this model. Below 100 indicates lower estimated local costs; above 100 indicates higher estimated local costs.

  • < 75 = Very Affordable (Exceptional Purchasing Power)
  • 75–89 = Affordable
  • 90–109 = Average (Near National Median)
  • 110–129 = Expensive
  • ≥ 130 = Very Expensive (Low Purchasing Power)

Mortgage Calculator

Our mortgage calculator uses the standard amortization formula:

M = P × [r(1+r)^n] / [(1+r)^n – 1]

Where:

P = Principal (home price - down payment)

r = Monthly interest rate (annual rate / 12)

n = Total payments (loan term in years × 12)

The total monthly payment adds: principal & interest, property tax (annual tax / 12), home insurance, PMI (if down payment < 20%), and HOA fees.

When accessed from a city page, the calculator is pre-filled with the typical home value and a state-level effective owner-occupied property-tax proxy. The proxy is not a city, county, parcel, school-district, exemption, or individual tax-bill estimate.

Tax Context

LivabilityCalc uses state-level tax context to help explain housing and relocation costs. The goal is to show how tax structure changes household budget pressure across places, alongside rent, property tax, utilities, and mortgage assumptions.

Place Tax Context = Property-Tax Proxy + Sales-Tax Context + State Income-Tax Overview

  • Property Tax: State-level effective owner-occupied rates are used as a planning proxy, not parcel-, county-, school-district-, or special-assessment-level tax bills.
  • Sales Tax: State plus average local sales tax context is shown where available to explain place-level consumer-cost pressure.
  • Income Tax: The 2024 single-filer planning engine identifies no-tax, flat, progressive, and approximation paths. Approximation states use a disclosed 4.5% heuristic above a $5,000 floor; results are not filing or withholding advice.

Household Budget Context

LivabilityCalc uses local household income as a benchmark for housing burden and home-price-to-income context. It helps show what typical budget pressure looks like in a place before you layer in your own household assumptions.

Rent Burden = Typical Monthly Rent × 12 / Local Median Household Income

Home Price to Income = Typical Home Value / Local Median Household Income

Use this section to frame household budget pressure, compare local affordability, and judge how much room a move may leave after housing costs.

Data Freshness & Auditing

LivabilityCalc uses source-specific dates rather than one global freshness claim. Zillow ZHVI and ZORI (City Level) is as of 2026-02 where matched; Census ACS 5-Year Estimates is 2023; BEA Regional Price Parities is 2024; the national mortgage benchmark is as of 2026-03-12; tax context uses the 2024 snapshot.

Geography matters: Zillow and Census are city/place inputs, BEA is metropolitan statistical area with state nonmetropolitan fallback, mortgage rates are national, and tax/property values are state-level context.

Limitations & Statistical Anomalies

  • Cities lacking Zillow coverage AND with a Census Median Home Value >$2,000,001 are designated as `acs_capped`. Due to Census top-coding constraints, these figures represent structural floors rather than exact medians.
  • Cities outside recognized Metropolitan Statistical Areas (MSAs) default to robust BEA State-level Nonmetropolitan baseline indices for non-housing parities.
  • Property-tax calculations use state-level effective owner-occupied housing proxies via the Tax Foundation. County, municipality, school district, parcel assessment, exemption, special assessment, and individual-bill details are excluded.
  • All modeled cost analyses are planning estimates, not predictions or personal financial advice.