Cost of Living in Paw Paw, MI

Population 3,277 · Michigan · Data vintage 2023

50
Cost Index
(100 = US avg)
Page updated: · Data vintage: 2023 ACS 5-Year
Sources: Census ACS·BLS·NOAA·EPA·Zillow · Methodology

Paw Paw's median household income of $38,989 is a meaningful share below the national figure, which shapes most of the downstream economic indicators — from housing affordability to the share of residents living below the poverty line (19% here).

Located 40 miles northeast of South Bend, Paw Paw falls within that metro's commuting orbit. Housing prices track closely with South Bend's $125,000 median.

Cost Overview

Housing 44
Rent 59

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

About the Cost of Living in Paw Paw

The median home value in Paw Paw is $133,600 — 56% below the national median of $305,000. Median rent runs $775/month, 41% lower than the national median of $1,314/month. The median household income of $38,989/year is 48% lower than the US median of $74,580. The local unemployment rate is 5.6%, above 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, Paw Paw has a cost of living index of 50 versus the US average of 100, meaning it is 50% less expensive.

🏠 Housing

Median Home Value
$133,600
56% below avg
Zillow Home Value
$259,970
Zillow ZHVI
Median Rent
$775/mo
41% below avg
Price-to-Rent Ratio
14.4x
Favors buying
Property Tax Rate
1.5%
Effective rate

HUD Fair Market Rents by Bedroom

Studio
$707
1 BR
$780
2 BR
$962
3 BR
$1,290
4 BR
$1,444
Owner-occupied 47.6%
Renter-occupied 52.4%

💰 Estimated Monthly Budget

Rent median rent
$775
Groceries national estimate
$400
Utilities local estimate
$88
Transportation local gas prices
$126
Estimated Total $1,389/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
19.2 min
29% below avg
Gas Price
$3.145/gal
0% below avg
Work From Home
8.1%

Commute Mode

Drove alone
78.2%
Carpooled
4.0%
Public transit
3.0%
Walked
6.8%
Work from home
8.1%

Utilities

Electricity
$0.176/kWh
0% below avg

📋 Taxes

State Income Tax (flat) 4.3%
Total Sales Tax 6.0%
State rate 6.0%
Avg local rate 0.0%
Property Tax 1.5%

💼 Income & Employment

Median Household Income
$38,989
48% below avg
Per Capita Income
$23,775
Unemployment Rate
5.6%
16% above avg
Poverty Rate
18.7%
Labor Force Participation
54.4%

🎓 Education

Bachelor's degree+ 9.0%
Graduate degree 1.8%

👥 Demographics

Median Age 35.4
Male median age 30.5
Female median age 41.9

🏫 Schools

NCES CCD 2019 — public school district data

77%
4-Year Graduation Rate
17.7:1
Student-teacher ratio
5
Public schools
2,160
Total enrollment

Frequently Asked Questions

What is the cost of living in Paw Paw, MI?

Paw Paw has a cost index of 50 (100 = national average). It is 50% below the national average.

What is average rent in Paw Paw, MI?

The median gross rent in Paw Paw is $775 per month based on 2023 Census data.

What is the average home price in Paw Paw?

The median home value in Paw Paw is $133,600 according to Zillow and Census data.

What is the median income in Paw Paw?

The median household income in Paw Paw is $38,989 per year (2023 ACS 5-year estimates).

What is the sales tax in Paw Paw, MI?

The combined state and local sales tax rate in Paw Paw is 6.0%. The Michigan state income tax top rate is 4.3%.

Is Paw Paw, MI affordable?

Yes, Paw Paw is generally considered affordable, with a cost of living index of 50 — about 50% below the US national average of 100.

Paw Paw at a Glance

Population
3,277
Median Income
$38,989
Home Value
$133,600
Median Rent
$775/mo
Unemployment
5.6%
Sales Tax
6.0%
View all cities in Michigan →
🗺️ County data for Michigan

Explore county-level cost of living data

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