Families may need to earn more than $450,000 a year to live comfortably in some of America's top school districts.
Illinois has the most affordable top-rated school districts, with four districts on the list requiring less than $100,000 in annual income.
Experts say families should weigh the cost of housing and other expenses against the benefits of a top school district and avoid stretching their budgets too far.
For many parents, living in a highly rated school district is a major priority when choosing where to raise their children. But getting access to some of the country's best schools may require more than a competitive home-buying budget — families may also need a hefty income to comfortably afford the overall cost of living.
New research from MoneyLion looked at the income needed for married couples with children to live comfortably in the 50 best school districts in the country, based on Niche.com's 2026 rankings. The findings show just how expensive that trade-off can be: In five of the top districts, families need an annual income of more than $450,000 to live comfortably.
ConsumerAffairs spoke with Rudri Patel, Certified Financial Health Counselor at MoneyLion, who explained that families should look beyond the appeal of a highly rated school system and consider the full financial picture before deciding where to put down roots.
How the study was conducted
MoneyLion analyzed the top 150 school districts in Niche.com's 2026 Best School Districts in America ranking, looking at factors including each district's location, number of students, and number of schools.
Researchers then used U.S. Census data, Sperling's BestPlaces cost-of-living indexes, Zillow home values, and Bureau of Labor Statistics spending data for married couples with children to estimate the cost of living in each area. They also factored in the cost of a 30-year mortgage, assuming a 10% down payment and the national average mortgage rate.
To estimate the income needed to live comfortably, MoneyLion doubled the calculated cost of necessities based on the 50/30/20 budgeting rule.
What the study found
The cost of living in America's top school districts can vary dramatically. Families would need to earn more than $450,000 a year to live comfortably in five of the 50 districts, including Palo Alto, California, where the estimated salary needed is $592,025.
Old Westbury, New York, ranked second-highest at $494,991, followed by Los Gatos, California, at $459,632; San Marino, California, at $454,334; and Palos Verdes Estates, California, at $451,714.
At the other end of the spectrum, four districts could be considered relatively affordable by the study's measure, with families needing less than $100,000 annually to live comfortably: Normal, Illinois ($94,468), Pittsburgh ($91,013), Cincinnati ($90,793), and St. Louis ($81,003).
Illinois also had the largest number of districts on the list, with 12, compared with 11 each in California and New York.
What factors link the most affordable states?
Patel explained that housing costs aren’t the main drivers in places like Normal, IL, Pittsburg/North Allegheny, Cincinnati/Mariemont, and St. Louis/Ladue.
“Salaries aren’t high six figures in these areas, but they aren’t necessarily low either,” he said. “Average salaries range between $80,000 to $95,000.
“Here’s why salaries don’t necessarily need to rise as high:
These aren’t areas where housing supply is necessarily low. There are plenty of houses available so consumers can shop around and get better prices on homes.
Homebuyers don’t have to compete with geography and tech-driven demand. These areas aren’t near the ocean or in areas that drive niche industries.
Income can keep up with housing costs. Moderate home prices allow families to still settle in high-demand school districts with plenty of remaining funds to dedicate to other expenses.”
Managing housing costs in high-income areas
So, how exactly are consumers in the highest-income districts making it work? Patel said it likely isn’t on one income alone.
“It’s likely that these are dual income households with both earners bringing in substantially high salaries,” he explained. “Some of these salaries are in tech, and earners may also have additional perks like stock options and other extras that traditional salaries don’t offer.
“Additionally, buying early may be a key to getting a home in these areas. Houses in these expensive districts may have been bought years ago. The value of these homes incrementally increased over the last decade. People who wish to buy now will likely be priced out.”
Another factor: buying older or smaller homes.
“You can’t assume everyone has a large or over-the-top home in these areas,” Patel said. “Some families may choose to buy ‘lesser’ homes just so their kids can have access to these districts.”
Balancing education with financial pressure
If you find yourself torn between wanting your children to get top-tier education, but also living within your means, you’re certainly not alone. Patel shared some of his best tips for parents dealing with this struggle.
Do what works for your budget. Don’t get caught up in keeping up with others, to land in a top-tier district if it stretches your budget so much that you can’t afford anything else.
Look at other school districts near the more expensive districts. There may be quality schools in a nearby area that have more affordable housing. Don’t dismiss the qualities of other schools if they aren’t necessarily located in the most expensive district.
Don’t let the school drive you to struggle financially in other areas of your life. The school district is important, but so is saving for retirement, affording extracurricular activities for your children, and enjoying travel.
Make a clear budget with real numbers. Don’t estimate your affordability without running the numbers. Plug in real numbers to determine the other areas you’ll have to sacrifice to afford the district.