The short version
California's typical two-bedroom rent is $2,632 a month on the HUD state average. Every state in the table below is cheaper. The biggest drops are in Idaho, Tennessee, North Carolina and Texas, where the yearly rent difference runs from $13,728 to $15,180.
That is only one side of the ledger. Taxes and pay move too, and a lower rent bill is only a gain if your income comes with you. The table puts all of it in one place.
California against eleven destinations
| State | Typical two-bedroom rent | Yearly rent difference vs California | Top income-tax rate | All state and local taxes, share of income | Median household income |
|---|---|---|---|---|---|
| California | $2,632 | Baseline | 13.3% | 9.5% | $100,149 |
| Idaho | $1,367 | $15,180 lower | 5.3% | 6.3% | $81,166 |
| Tennessee | $1,381 | $15,012 lower | None | 3.8% | $71,997 |
| North Carolina | $1,441 | $14,292 lower | 3.99% | 6.5% | $73,958 |
| Texas | $1,488 | $13,728 lower | None | 6.2% | $79,721 |
| Utah | $1,493 | $13,668 lower | 4.45% | 7.4% | $96,658 |
| Arizona | $1,616 | $12,192 lower | 2.5% | 5.1% | $81,486 |
| Nevada | $1,672 | $11,520 lower | None | 3.9% | $81,134 |
| Oregon | $1,691 | $11,292 lower | 9.9% | 11.7% | $85,220 |
| Colorado | $1,916 | $8,592 lower | 4.4% | 7.4% | $97,113 |
| Florida | $1,962 | $8,040 lower | None | 4.7% | $77,735 |
| Washington | $2,044 | $7,056 lower | None | 7.2% | $99,389 |
Rent: HUD Fair Market Rents, state averages, two-bedroom. Tax rates: each state’s revenue department. Tax share of income: what a married couple on the U.S. median household income would pay in state and local income, property and sales tax (Locustep estimate). Income: Census. Sorted by the biggest yearly rent drop. “None” means the state does not tax wages.
What the numbers show
- Rent is lower in every one of these states. The yearly difference runs from $7,056 in Washington up to $15,180 in Idaho.
- The total state and local tax share is lower in most of them too, from 9.5% of income in California down to 3.8% in Tennessee and 6.2% in Texas. Oregon is the exception at 11.7%: no sales tax, but a high income tax.
- Median household income is lower in every one of them as well, from $100,149 in California to $71,997 in Tennessee. A lower rent bill helps most if your pay comes with you, for example if you work remotely or in a field that pays the same in both places.
- Property tax is the exception to the pattern. Texas's effective rate is 1.31%, far above California's 0.71%, and Oregon, Florida and Washington are also higher. Homeowners should look at that line before moving for tax reasons.
State averages hide the real choice: the city
These are state averages. California's rent varies enormously from one metro to another, and so does rent in the states you might move to. A cheap corner of California can cost less than an expensive city in Texas, and the other way round. Pick the metro as well as the state before you decide, and use the state pages to see the cities Locustep covers.
How to decide
- Start with what has to be true: your job or income, family, healthcare, weather. Cut any state that fails.
- Then compare the shortlist on money. Put your own income, rent or home price and household next to each state, not the averages above.
- Check the downsides the headline numbers miss, such as hazards, summers and distance from people you care about. The state rankings cover rent, safety, disaster risk and weather.
- Visit before you commit. A week in the neighbourhood tells you what no table can.
Locustep's free quiz ranks every state for what you care about. When you have a shortlist, Premium is a one-time $39 purchase that runs your own income and housing through 2026 state and local tax law and gives you one number: how much better or worse off you would be each year.
This guide gives information to help you decide. It is not tax, financial, legal or real-estate advice. Figures are published estimates and your own situation can differ.