Cost of Living in Ann Arbor, MI
Population 121,179 · Michigan · Data vintage 2023
(100 = US avg)
Ann Arbor's demographic profile reads like a college town: median age of 28, and 30% of adults hold a bachelor's degree — a share well above the national baseline. Housing and rent cycles track the academic calendar more than the broader Michigan economy. A poverty rate near 23% adds context to the income figures — well above the US average, and worth factoring into any comparison with cities on the coasts or in the Rockies.
Cost Overview
Scale: 100 = US national average. Green < 90, Red > 110.
About the Cost of Living in Ann Arbor
The median home value in Ann Arbor is $435,100 — 43% above the national median of $305,000. Median rent runs $1,552/month, 18% higher than the national median of $1,314/month. The median household income of $81,089/year is 9% higher than the US median of $74,580. The local unemployment rate is 3.6%, below the national average of 4.8%. Michigan's top state income tax rate is 4.3% and the combined sales tax is 6.0%. Overall, Ann Arbor has a cost of living index of 133 versus the US average of 100, meaning it is 33% more expensive.
🏠 Housing
HUD Fair Market Rents by Bedroom
💰 Estimated Monthly Budget
Estimates based on median data and national averages. Actual costs vary.
🛒 Food & Groceries
National BLS average prices (2023). Local prices may vary.
🚗 Transportation
Commute Mode
⚡ Utilities
📋 Taxes
💼 Income & Employment
🎓 Education
👥 Demographics
💨 Air Quality
EPA AQS 2023 — county-level monitoring data
🏫 Schools
NCES CCD 2019 — public school district data
Frequently Asked Questions
What is the cost of living in Ann Arbor, MI?
Ann Arbor has a cost index of 133 (100 = national average). It is 33% above the national average.
What is average rent in Ann Arbor, MI?
The median gross rent in Ann Arbor is $1,552 per month based on 2023 Census data.
What is the average home price in Ann Arbor?
The median home value in Ann Arbor is $435,100 according to Zillow and Census data.
What is the median income in Ann Arbor?
The median household income in Ann Arbor is $81,089 per year (2023 ACS 5-year estimates).
What is the sales tax in Ann Arbor, MI?
The combined state and local sales tax rate in Ann Arbor is 6.0%. The Michigan state income tax top rate is 4.3%.
Is Ann Arbor, MI affordable?
Ann Arbor is above average in cost of living, with an index of 133 — about 33% higher than the national average.
Ann Arbor at a Glance
- Population
- 121,179
- Median Income
- $81,089
- Home Value
- $435,100
- Median Rent
- $1,552/mo
- Unemployment
- 3.6%
- Sales Tax
- 6.0%
Nearby Cities
Explore county-level cost of living data
Michigan Rankings
Similar Cost Cities
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