Question 1

What are Regional Price Parities (RPPs)?

Accepted Answer

Regional Price Parities are annual price-level indices published by the U.S. Bureau of Economic Analysis (BEA). They measure how much prices in a metropolitan area differ from the national average. An RPP of 100 equals the national average, 110 means prices are roughly 10% above average, and 90 means roughly 10% below. RPPs cover goods, housing rents, and other services.

Question 2

What categories does the BEA RPP provide?

Accepted Answer

The BEA publishes four RPP sub-categories for metropolitan areas: (1) All Items — the overall regional price level, (2) Goods — durable and nondurable consumption goods, (3) Housing Rents — observed tenants' rents, and (4) Other Services — education, medical, recreation, and transportation services. There is no separate utility or healthcare sub-index at the metro level.

Question 3

How is the equivalent salary calculated?

Accepted Answer

The salary equivalence uses the formula: Equivalent salary = Current salary × (Destination RPP ÷ Current RPP). For example, if you earn $75,000 in Houston (RPP 98.6) and move to San Francisco (RPP 115.6), you would need approximately $87,917 to maintain similar purchasing power. This is an estimate — it does not account for differences in taxes, individual spending patterns, or household composition.

Question 4

Are taxes included in these comparisons?

Accepted Answer

No. Regional Price Parities measure the prices of goods and services, not state or local income taxes. States like Texas, Florida, and Washington have no state income tax, which effectively increases take-home pay. Use our Paycheck Calculator alongside this tool to see the tax impact for specific states.

Question 5

Why is housing the biggest driver of regional price differences?

Accepted Answer

Housing rents show by far the most variation across metro areas. In the BEA data, San Jose has a housing rent index of 211.9 (more than double the national average) while Charleston, WV is just 51.4 (about half the national average). Goods and services indices vary much less — typically between 90 and 110. This is why housing dominates cost-of-living differences between cities.

Question 6

How accurate are these comparisons?

Accepted Answer

BEA Regional Price Parities are based on price data from the Bureau of Labor Statistics Consumer Price Index and rent data from the Census Bureau's American Community Survey. They provide a rigorous baseline but reflect MSA-wide averages — specific neighborhoods, lifestyles, and personal spending patterns will shift your actual experience. Use this calculator as a starting point for relocation planning.

Question 7

What is the cheapest metro area in the data?

Accepted Answer

Among the 70+ metro areas in our dataset, Charleston (WV), Tulsa (OK), Jackson (MS), and Little Rock (AR) have the lowest overall RPP values — all below 90, meaning prices are more than 10% below the national average. However, lower costs often correlate with lower median incomes, so always compare the income-to-cost ratio, not just the price index alone.

Category	Houston	San Francisco	Difference
All Items (Overall)	98.6	115.6	+17.2%
Goods	100.6	108.5	+7.8%
Housing Rents	104.5	194.7	+86.3%
Other Services	95.6	106.2	+11.1%

Cost of Living Calculator

Regional Price Level Comparison

Estimated Purchasing-Power Equivalent Salary

Median Household Income (MSA Level)

Data Sources & Methodology

Cost of Living FAQ

Related Calculators