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Methodology

How the Cost Score is built

A weighted blend of four cost categories, expressed as a single 0–100 composite where higher means more affordable for a North-American buyer — and honest about where the data runs out.

Housing · 40%

The heaviest single input is the Numbeo "Apartment 1BR, City Centre" monthly rent in USD. For countries this is the Numbeo country figure (served in USD where Numbeo serves it; native EUR recorded for the European markets); for Mexican cities it is the per-city Numbeo page, MXN converted at the disclosed X-Rates USD/MXN average. The Numbeo baseline is unfurnished — disclosed, not adjusted with a fabricated furnished premium. Mexico (country) keeps its originally-cited Inmuebles24/CFE-basis figure rather than re-basing to a Numbeo housing primitive that was never sourced; that instrument-basis difference is disclosed.

Food · 20%

The consistent cross-market instrument is the Numbeo Groceries Index (New York = 100, unitless). It is converted to a monthly dollar figure by a single disclosed anchor: Mexico's originally-cited food figure $460/mo divided by Mexico's Numbeo Groceries Index 46.6 gives $9.8712 per index-point, and every market's Food figure is its own Numbeo Groceries Index multiplied by that same factor and rounded. Mexico's Food figure is therefore unchanged by construction; national-statistics food baskets are cited only as directional corroboration. Tulum has no Numbeo page, so its Food figure uses the Mexico national index as a clearly-disclosed proxy.

Healthcare · 20%

The healthcare line is the WHO Global Health Expenditure Database out-of-pocket health expenditure per capita (current US$, indicator SH.XPD.OOPC.PC.CD), divided by 12. This is the average amount a resident pays out of pocket per person — it is NOT a private-insurance premium, and the earlier premium-based estimates are retired site-wide. The latest available year is used per country (2023 for most; Portugal and Italy 2024). Mexican cities inherit the Mexico national value as a disclosed national proxy, because no institutional sub-national health-spending series exists.

Daily living · 20%

For countries: Numbeo basic utilities (85m²) + 60Mbps internet + a monthly transit pass, in USD. For Mexican cities: utilities + transit only — Numbeo city pages publish no separate internet line, so the city Daily figure is a disclosed two-component basis. Tulum's Numbeo page carries no transit value, so its Daily figure is utilities only and the transit gap is disclosed, never filled with a fabricated number.

How the score is computed

The composite is a documented, deterministic formula — the four monthly inputs sum to a headline dollar figure, that figure is compared to a constant $4,240 US benchmark, and the ratio maps to a 0–100 affordability score through a fixed piecewise-linear band map. Higher means more affordable for a US buyer. Nothing is hand-graded.

Food$ · Food$ = round(Numbeo Groceries Index × anchor). The anchor is Mexico's originally-cited food figure $460/mo ÷ Mexico's Numbeo Groceries Index 46.6 = $9.8712 per index-point — a single site-wide constant
headline$ · headline$ = round(Housing + Food$ + Healthcare + Daily)
vsUS · vsUS = headline$ / 4240 (rounded to 2 dp for display)
composite · composite = bandMap(headline$ / 4240), piecewise-linear, 1 dp
contribution · contribution = round(weightMax × composite / 100), per source (UI bar only)

Band map (vsUS → composite)

v ≤ 0.40C = 100 − 50·v
0.40 < v ≤ 0.55C = 80 − 100·(v − 0.40)
0.55 < v ≤ 0.75C = 65 − 75·(v − 0.55)
0.75 < v ≤ 0.95C = 50 − 100·(v − 0.75)
v > 0.95C = max(0, 30 − 120·(v − 0.95))

Grade bands: A 80–100 · B 65–<80 · C 50–<65 · D 30–<50 · F <30; ± by band thirds (A: A−/A only; F: plain F). Composite is rounded to one decimal place. Against the constant $4,240 anchor every market we cover is strongly affordable, so the letters cluster in the B+/A− range — the real differentiation lives in the headline dollar figure and the vsUS ratio, not the letter.

Disclosures

  • Healthcare is WHO GHED out-of-pocket health spend per person (annual ÷ 12) — NOT a private-insurance premium. Latest year per country (2023 for six; PT/IT 2024).
  • Grade compression: against the constant $4,240 US anchor every market is strongly affordable, so letters cluster B+/A−. The differentiation lives in headline$ and vsUS, not the letter.
  • Mexico keeps its originally-cited Housing, Food and Daily figures (an Inmuebles24/CFE basis, a different instrument than Numbeo); the Food anchor is defined off Mexico's $460 so Mexico's Food figure is unchanged by construction. The difference in instrument basis between Mexico and the newer markets is disclosed.
  • City Healthcare = Mexico national WHO GHED value (national proxy — no sub-national series). City Daily = utilities + transit only (2-component — Numbeo city pages publish no internet line).
  • Tulum: Food = Mexico-country Groceries Index national proxy (no Numbeo Tulum page); transit uncitable (Numbeo blank → Daily is utilities only); Numbeo data oldest (Jan 2026). Ships with stacked disclosure.
  • Belize: the Numbeo aggregate is only 13 contributors — ships with a prominent low-confidence caveat. San Miguel de Allende and Puerto Vallarta are low-confidence (17 Numbeo contributors).
  • Numbeo housing is an unfurnished baseline; no fabricated furnished premium.

When sources disagree

Last verified2026-05-16·Methodology v2.0.0← Back to Cost of Living