Earning $100,000 a year might sound like a dream, but in 2025, how far that salary stretch depends heavily on where you live. From rising housing costs to inflation affecting everyday expenses, living comfortably on six figures isn’t as straightforward as it used to be. Here’s a detailed look at the cities where $100K goes far – and where it doesn’t.
Best Cities to Live Comfortably on $100K
Some cities offer a low cost of living, affordable housing, and plenty of opportunities to make your dollar go further.
- Tulsa, Oklahoma
Tulsa consistently ranks as one of the most affordable cities in the U.S. Housing is particularly cheap, with median home prices around $190,000. Groceries, utilities, and healthcare costs are also below the national average. - Memphis, Tennessee
Memphis not only has a low cost of living but also no state income tax. This means more of your paycheck stays in your pocket. Renting in Memphis costs an average of $1,000 a month, and food and utility expenses are budget-friendly. - El Paso, Texas
With its warm climate and affordable living, El Paso is a favorite for those looking to stretch their salary. Median home prices are under $180,000, and the city offers low healthcare and transportation costs. - Knoxville, Tennessee
Knoxville combines a low cost of living with strong job opportunities and affordable property taxes. Whether buying a home or renting, $100K is more than enough to live comfortably here. - Fayetteville, Arkansas
This city offers a thriving economy and affordable housing. Median home prices are around $200,000, making Fayetteville a great choice for families and young professionals.
Factors That Affect Cost of Living
Several elements determine how far $100K stretches:
- Housing Costs: This is the largest expense in most households. Cities with affordable housing allow residents to spend less on rent or mortgages and more on other needs.
- State Taxes: States with no income tax, like Texas and Tennessee, make your paycheck go further.
- Daily Expenses: Transportation, groceries, and utilities vary greatly depending on the city.
How to Choose the Right City
- Set Priorities: Determine what matters most to you – job opportunities, quality of life, or affordability.
- Research Housing: Look into average home prices and rent costs in potential cities.
- Consider Taxes: States with lower or no income tax can make a big difference in your take-home pay.
Final Thoughts
While $100K remains a solid salary, where you live dramatically affects how comfortable life will be. Cities like Tulsa and Memphis allow you to thrive, while high-cost areas like San Francisco and New York City make $100K feel insufficient.
If you’re considering a move, research thoroughly to find a city that fits your financial and lifestyle needs. Balancing affordability and opportunity is key to making the most of your salary in 2025.
