Moving to a cheaper city is worth it when the yearly gain in money left over beats the one-time cost of moving — and when your income comes with you. A family of four earning $120,000 keeps $25,092 a year in Chicago after 2026 taxes, rent, childcare and everyday costs, and $44,167 in Memphis at the same pay: $19,075 more a year, or about $1,590 a month. If the move means a new job, Memphis needs to pay only $96,260 to match Chicago.
The budget gap, line by line
Two adults earning $120,000 combined (a 60/40 split), one preschooler and one school-age child in center-based care for 52 weeks, renting a two-bedroom at HUD Fiscal Year 2027 Fair Market Rent, two cars at 12,000 miles each, USDA Moderate-Cost food plan (August 2026):
| Annual line | Chicago, IL-IN | Memphis, TN-MS-AR |
|---|---|---|
| Total 2026 taxes | $20,181 | $14,820 |
| of which state income tax | $5,361 (Illinois) | $0 (Tennessee) |
| Rent, 2-bedroom Fair Market Rent | $24,132 ($2,011/mo) | $15,612 ($1,301/mo) |
| Childcare, center-based | $17,275 | $14,155 |
| Food | $16,508 | $14,810 |
| Gasoline | $3,945 | $3,945 |
| Other goods and services (estimate) | $12,465 | $11,496 |
| State sales tax | $402 | $997 |
| Left over | $25,092 | $44,167 |
Sources: HUD FY2027 Fair Market Rents (91 FR 56156); DOL Women’s Bureau National Database of Childcare Prices, 2022 county medians for Cook County, IL and Shelby County, TN, multiplied by 1.2224 (BLS consumer price index for day care and preschool, 2022 average to August 2026); USDA food plans; BEA Regional Price Parities 2024 (Chicago 103.6, Memphis 92.2); 2026 taxes from the MoveMath engine. “Other goods and services” is an adjustable estimate of $500 + $500 a month at US prices, scaled by local price levels — not measured data.
Rent is the largest difference ($8,520 a year), then Illinois income tax ($5,361) and childcare ($3,120). Gasoline costs the same because both metros use EIA’s Midwest regional average price.
The matching salary: your floor for a new job
If you would take a new job in the cheaper city, the question is what pay keeps you whole. MoveMath’s engine solves it: $96,260 in Memphis leaves the same $25,092 a year as $120,000 in Chicago. Check it with the cost of living calculator. Offers above $96,260 are a genuine gain; a $100,000 Memphis offer is a cut on paper but a raise in practice.
The same check for a single renter on $70,000 moving from Chicago to Nashville gives $61,801 on the Chicago to Nashville moving page.
How long until the move pays back
Divide your one-time moving costs by the monthly gain. At the same $120,000 salary, this family gains $1,590 a month in Memphis:
| One-time moving costs (your quotes) | Months to recover at $1,590/month |
|---|---|
| $5,000 | about 3 |
| $10,000 | about 6 |
| $20,000 | about 13 |
If the move comes with a pay change, use the gain at the new salary instead. At $96,260 in Memphis the gain is zero by definition, so nothing is ever paid back.
When the math works — and when it does not
The move likely pays if:
- Your income moves with you (remote work, a transfer, or an offer above the matching salary).
- The yearly gain in money left over exceeds your one-time moving costs within a year or two.
- The cheaper city has the schools, health care and work options your household needs.
The move may not pay if:
- A local job pays less than the matching salary.
- You spend the savings on a larger home. A three-bedroom Fair Market Rent in Memphis is $1,717 a month, $416 more than the two-bedroom.
- One-time costs are large: a home purchase, a second car, or months of overlapping rent.
Local wages: the catch in cheaper cities
Prices are lower partly because local wages are. The Census ACS 2020–2024 median household income is $66,401 in the Memphis metro against $90,887 in the Chicago metro. If your pay is set in a higher-wage market — remote work, a pension, a transferable practice — you keep the price advantage without the wage penalty. If you will need a local employer, research pay for your occupation before assuming you can match your current salary.
Renting vs buying in the new city
Median home values in the ACS 2020–2024 are $323,000 for the Chicago metro and $245,900 for the Memphis metro. Ownership adds property tax, insurance and utilities on top of the mortgage, so it changes the comparison; the cost of owning a home calculator prices it by county, and rent vs buy after a move walks through the trade-off.
Run it for your household
Enter your own income, children’s ages and city pair in the cost of living calculator. Full standard budgets are on the Chicago and Memphis metro pages.