This is exactly correct. I work in a midwest city which I'd consider small/medium sized, and my entry level salary five years ago was only around $20/hr (which, as a single guy with a low cost of living, seemed like a lot). The most I've heard of a developer making here was somewhere on the order of $65/hr, and that was considered very high. If I went to Chicago, that wouldn't be high at all, but my costs of living would also probably triple.