When it comes time to head back to school for your MBA, there are a ton of deciding factors. You have to choose what type of MBA you want (full-time, part-time, executive). Then, you have to choose the program that is right for you. Do you want to attend a top ten school or something a little less prestigious? Finally, you have to decide where you want to live for the next two years or more.
The city where you live while getting your MBA can make a big difference in your life during and after school. In particular, affordability can make the difference between eating boxed mac-and-cheese every night and being able to afford a night out for drinks with your network.
First, let’s talk about what affordability means. It doesn’t mean it’s the cheapest place to rent an apartment, buy gas, or put groceries in your fridge. Instead, true affordability is measured by median household income versus the cost of living expenses. We took a look at a few important statistics to help us come up with our top five affordable U.S. cities.
- Median household income
- Median home sale price
- Median rent
- Cost per gallon of gas
- Estimated monthly expenses
- Cost of living in the “city” versus New York City
Finally, we wrap it all up into the Cost of Living Index. This statistic determines local buying power relative to the national average. It’s based on 100, and the lower the number, the better.
The top five most affordable U.S. cities are listed below. Then, at the end, we rank the top five MetroMBA cities.
Top Five Most Affordable Metros
- Omaha, Nebraska
Omaha is home to Warren Buffett and a low-key attitude that makes it a great place to live, work, and raise a family. The city’s unemployment rate is well below the national average, and the economy is home to insurers, energy firms, and logistics businesses that keep it booming. Residents love it for the great river views and fertile agricultural land. It’s also a very affordable place to live.
- Median household income: $46,000
- Median home sale price: $166,000
- Median rent: $865
- Cost per gallon of gas: $3.10
- Estimated monthly expenses: $753.05 for a family of four
- Cost of living in the “city” versus New York City: 34.5% cheaper
- Cost of Living Index: 65.5
- Columbus, Ohio
Columbus is home to a strong economy and an educated populace—thanks to Ohio State University, one of the country’s largest and best-regarded public universities. Columbus is the place to be for young, ambitious workers who want a vibrant urban core. Residents love the beautiful views and the world-class Columbus Museum of Art. For affordability:
- Median household income: $44,000
- Median home sale price: $128,000
- Median rent: $825
- Cost per gallon of gas: $3.40
- Estimated monthly expenses: $812.35 for a family of four
- Cost of living in the “city” versus New York City: 28.7% cheaper
- Cost of Living Index: 71
- Memphis, Tennessee
Memphis is home to about 1.3 million people. It’s the home of Graceland, the birthplace of Elvis, and one of the biggest music capitals in the South. It’s renowned for its barbecue, blues clubs, and friendly atmosphere. It’s also regularly rated among the country’s top destinations for bargain-seeking Millennials because of its affordability.
- Median household income: $35,000
- Median home sale price: $110,000
- Median rent: $850
- Cost per gallon of gas: $3.05
- Estimated monthly expenses: $825.42 for a family of four
- Cost of living in the “city” versus New York City: 28.03% cheaper
- Cost of Living Index: 72
- Indianapolis, Indiana
Indianapolis is a booming Midwestern city with plenty to offer. It’s a transportation hub that’s within three to four hours of half a dozen major cities. It also offers a unique blend of urban, suburban, and rural, appealing to anyone and everyone. It’s best known for the Indy 500, Colts football, and a spread-out cityscape. It’s affordable for a variety of reasons:
- Median household income: $39,500
- Median home sale price: $112,000
- Median rent: $775
- Cost per gallon of gas: $3.40
- Estimated monthly expenses: $845.13 per family of four
- Cost of living in the “city” versus New York City: 25.76% cheaper
- Cost of Living Index: 74
- Buffalo, New York
Buffalo has suffered decades of de-industrialization, but it’s coming back. It’s New York’s second-largest metropolitan region and has long been hidden in plain site. The economy is home to emerging healthcare organizations and universities that are stabilizing employment. It’s also affordable.
- Median household income: $30,500
- Median home sale price: $69,400
- Median rent: $675/month
- Cost per gallon of gas: $3.60
- Estimated monthly expenses: $884.96 for a 4 person family
- Cost of living in the “city” versus New York City: 21.6% cheaper
- Cost of Living Index: 77
As for our MetroMBA cities:
- Estimated monthly expenses: $881.49 for a four-person family
- Cost of living in the “city” versus New York City: 26.18% cheaper
- Cost of Living Index: 73.82
- Estimated monthly expenses: $801.59 for a four-person family
- Cost of living in the “city” versus New York City: 30.82% cheaper
- Cost of Living Index: 69.18
- Estimated monthly expenses: $811.76 for a four-person family
- Cost of living in the “city” versus New York City: 27.47% cheaper
- Cost of Living Index: 72.53
- Estimated monthly expenses: $867.07 for a four-person family
- Cost of living in the “city” versus New York City: 23.31% cheaper
- Cost of Living Index: 76.69
- Estimated monthly expenses: $903.59 for a four-person family
- Cost of living in the “city” versus New York City: 21.79% cheaper
- Cost of Living Index: 78.21