Cost of Living in Palmer, AK

Population 6,141 · Alaska · Data vintage 2023

89
Cost Index
(100 = US avg)
Page updated: · Data vintage: 2023 ACS 5-Year
Sources: Census ACS·BLS·NOAA·EPA·Zillow · Methodology

Palmer sits on the smaller end of the Alaska city distribution. That scale shapes the housing market, the labor pool, and the services available to residents in ways the data below makes visible. Unemployment has stayed elevated relative to the national figure — 8.4% as of the most recent ACS release — which shows up in household-income and poverty figures as well.

Geographically, Palmer is about 30 miles north of Anchorage, the nearest large metro. Median home values run roughly 27% lower than Anchorage's $376,000.

Cost Overview

Housing 90
Rent 86

Scale: 100 = US national average. Green < 90, Red > 110.

About the Cost of Living in Palmer

The median home value in Palmer is $275,900 — 10% below the national median of $305,000. Median rent runs $1,134/month, 14% lower than the national median of $1,314/month. The median household income of $70,550/year is 5% lower than the US median of $74,580. The local unemployment rate is 8.4%, above the national average of 4.8%. Alaska charges no state income tax, a meaningful advantage for take-home pay. The climate averages highs of 45.1°F and lows of 29.1°F. Overall, Palmer has a cost of living index of 89 versus the US average of 100, meaning it is 11% less expensive.

🏠 Housing

Median Home Value
$275,900
10% below avg
Zillow Home Value
$420,936
Zillow ZHVI
Median Rent
$1,134/mo
14% below avg
Price-to-Rent Ratio
20.3x
Favors renting
Property Tax Rate
1.0%
Effective rate

HUD Fair Market Rents by Bedroom

Studio
$1,004
1 BR
$1,129
2 BR
$1,413
3 BR
$1,839
4 BR
$2,224
Owner-occupied 62.4%
Renter-occupied 37.6%

💰 Estimated Monthly Budget

Rent median rent
$1,134
Groceries national estimate
$400
Utilities local estimate
$88
Transportation local gas prices
$126
Estimated Total $1,748/mo

Estimates based on median data and national averages. Actual costs vary.

🛒 Food & Groceries

National BLS average prices (2023). Local prices may vary.

🥚
Eggs (dozen)
$0.548
🍞
White Bread (lb)
$1.912
🥩
Ground Beef (lb)
$5.61

🚗 Transportation

Avg Commute
28.5 min
6% above avg
Gas Price
$3.145/gal
0% below avg
Work From Home
6.2%

Commute Mode

Drove alone
76.7%
Carpooled
10.1%
Public transit
0.4%
Walked
3.7%
Bicycle
0.3%
Work from home
6.2%

Utilities

Electricity
$0.176/kWh
0% below avg

📋 Taxes

State Income Tax (flat) None
Total Sales Tax 1.8%
State rate 0.0%
Avg local rate 1.8%
Property Tax 1.0%

💼 Income & Employment

Median Household Income
$70,550
5% below avg
Per Capita Income
$34,916
Unemployment Rate
8.4%
74% above avg
Poverty Rate
11.0%
Labor Force Participation
61.0%

🎓 Education

Bachelor's degree+ 15.3%
Graduate degree 8.5%

👥 Demographics

Median Age 32.9
Male median age 31.6
Female median age 34.9

🌤 Climate

NOAA 1991–2020 Climate Normals

Avg High
45.1°F
Avg Low
29.1°F
Annual Precip
12.6"
18° 35° 53° 70° JFMAMJJASOND High Low Precip
Month JanFebMarAprMayJunJulAugSepOctNovDec
High °F 222834485966686556422925
Low °F 81317303947514841291611
Precip" 0.650.700.470.300.621.001.602.322.081.250.660.96

💨 Air Quality

EPA AQS 2023 — county-level monitoring data

Median AQI 14 — Good
88.5%
Good air days/yr
102
Max AQI recorded
301
PM2.5 days
0
Ozone days

Frequently Asked Questions

What is the cost of living in Palmer, AK?

Palmer has a cost index of 89 (100 = national average). It is 11% below the national average.

What is average rent in Palmer, AK?

The median gross rent in Palmer is $1,134 per month based on 2023 Census data.

What is the average home price in Palmer?

The median home value in Palmer is $275,900 according to Zillow and Census data.

What is the median income in Palmer?

The median household income in Palmer is $70,550 per year (2023 ACS 5-year estimates).

What is the sales tax in Palmer, AK?

The combined state and local sales tax rate in Palmer is 1.8%. Alaska has no state income tax.

Is Palmer, AK affordable?

Yes, Palmer is generally considered affordable, with a cost of living index of 89 — about 11% below the US national average of 100.

What is the weather like in Palmer?

Palmer has average high temperatures of 45.1°F and average lows of 29.1°F. Annual precipitation is 12.6". Data from NOAA 1991–2020 Climate Normals.

Palmer at a Glance

Population
6,141
Median Income
$70,550
Home Value
$275,900
Median Rent
$1,134/mo
Unemployment
8.4%
Avg High Temp
45.1°F
Sales Tax
1.8%
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🗺️ County data for Alaska

Explore county-level cost of living data

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