Can I Afford to Live in Lincoln vs Madison on $40K?
Here's how a $40K/year salary plays out in both cities after taxes, rent, and core living expenses — based on Q1 2026 data.
Monthly budget breakdown
| Expense | Lincoln NE | Madison WI |
|---|---|---|
| Monthly take-home (est.) | $2,535 | $2,472 |
| 1BR rent | $1,150 | $1,650 |
| Groceries (est.) | $357 | $384 |
| Transport (est.) | $48 | $62 |
| Utilities | $152 | $162 |
| Internet | $58 | $63 |
| Left after essentials | $770/month | $151/month |
Frequently asked questions
Is $40K a good salary in Lincoln?
At $40K/year in Lincoln, your estimated monthly take-home is $2,535. With 1BR rent around $1,150/month, rent takes up 45% of your take-home. That's considered difficult.
Is $40K a good salary in Madison?
At $40K/year in Madison, your estimated monthly take-home is $2,472. With 1BR rent around $1,650/month, rent takes up 67% of your take-home. That's considered difficult.
Which city is more affordable on a $40K salary?
Lincoln leaves you with more money after core expenses — $770/month vs $151/month in Madison.
Can I afford to live alone in Lincoln on $40K?
It's tight. Rent in Lincoln would take 45% of your $40K take-home pay. You may need to find roommates or look at studios to stay within the 30% rule.
See the full cost-of-living comparison
Rent, groceries, taxes, transportation, and more — side by side.
Take-home estimates use simplified federal/state brackets and do not account for pre-tax deductions, 401(k), or local taxes. Data: Zillow, BLS, Numbeo · Q1 2026 · For general guidance only