Is Ann Arbor expensive to live in?

Ann Arbor is among the most expensive of the 158 US cities we track. Its one-bedroom rent of $1,389 per month ranks #27 of 158 and is 33% higher than the $1,043 median.

What is the average rent in Ann Arbor?

Average rent in Ann Arbor, MI runs a studio around $1,274, a one-bedroom around $1,389, a two-bedroom around $1,692, a three-bedroom around $1,812 per month (US Census ACS).

How much do you need to earn to live in Ann Arbor?

To keep a one-bedroom rent of $1,389 near the recommended 30% of gross income, you'd want to earn roughly $56,000 a year. The median household income here is $81,089.

How much does it cost to live in Ann Arbor per month?

A rough monthly baseline for one person in Ann Arbor is about $1,630 — one-bedroom rent plus typical residential electricity and heating. It excludes food, transport, and healthcare, so a full budget is higher.

Cost of Living in Ann Arbor, MI

Population 121,179 · Michigan

~$1,630/mo est.1BR $1,389Home $435,100

Photo: Chris Winchester / Unsplash

Compare with:

The cost of living in Ann Arbor, MI is driven mostly by housing. A one-bedroom apartment rents for around $1,389 a month — 33% higher than the $1,043 median across the 158 large US cities we track. Studios average $1,274 and two-bedrooms $1,692.

Median household income here is $81,089, 20% higher than the $67,696 median of the cities we track. Adding typical electricity and heating to one-bedroom rent, a rough monthly baseline for one person is about $1,630 before food and transport. Michigan has a top state income tax rate of 4.25% and a 6% state sales tax.

Rent1BR $1,389

Studio

$1,274

1 Bedroom

$1,389

2 Bedroom

$1,692

3 Bedroom

$1,812

Buying a Home$435,100

Median Home Value

$435,100

Income$81,089

Median Household Income

$81,089

Metro Median Wage (annual)

$55,380

Household income: Census ACS, city. Metro median wage: BLS OEWS, all occupations, 2025 (metro area).

GroceriesMidwest

Milk (gal)

$4.31

Bread (lb)

$1.66

Eggs (doz)

$3.63

Ground Beef (lb)

$6.77

Chicken (lb)

$2.10

Bananas (lb)

$0.62

Average prices, Midwest (BLS, 2026-07-01). Regional where available, otherwise U.S. average.

Utilities23.0¢/kWh

Electricity

23.0¢/kWh

Natural Gas

$19.72/MCF

Residential, state-level averages (EIA, 2026-06-01). MCF = 1,000 cubic feet.

Gas$3.85/gal

Regular Gasoline (Midwest (PADD 2))

$3.85/gal

EIA weekly retail average, week of 2026-08-31.

State Taxes (MI)6% sales

State Sales Tax

State Income Tax (top rate)

Up to 4.25%

State-level rates. Local sales taxes may add more. Income tax shown is the top marginal rate; most filers pay less.

Crime311 violent

Violent Crime (per 100k/yr)

311

Property Crime (per 100k/yr)

1,744.5

FBI Crime Data Explorer, Ann Arbor Police Department (2024). Offenses per 100,000 residents per year. Agency reporting practices vary, so cross-city comparisons are approximate.

People & LifestyleAge 27.7 yrs

Median Age

27.7 yrs

Homeownership

45.6%

Bachelor's+ (25+)

77.7%

Avg Commute

19.9 min

Climate47.7°F

Avg Annual Temperature

47.7°F

Annual Precipitation

32.8 in

Ann Arbor cost of living — FAQ

Is Ann Arbor expensive to live in?: Ann Arbor is among the most expensive of the 158 US cities we track. Its one-bedroom rent of $1,389 per month ranks #27 of 158 and is 33% higher than the $1,043 median.
What is the average rent in Ann Arbor?: Average rent in Ann Arbor, MI runs a studio around $1,274, a one-bedroom around $1,389, a two-bedroom around $1,692, a three-bedroom around $1,812 per month (US Census ACS).
How much do you need to earn to live in Ann Arbor?: To keep a one-bedroom rent of $1,389 near the recommended 30% of gross income, you'd want to earn roughly $56,000 a year. The median household income here is $81,089.
How much does it cost to live in Ann Arbor per month?: A rough monthly baseline for one person in Ann Arbor is about $1,630 — one-bedroom rent plus typical residential electricity and heating. It excludes food, transport, and healthcare, so a full budget is higher.

Compare Ann Arbor with nearby cities

Ann Arbor vs Detroit Ann Arbor vs Grand Rapids Ann Arbor vs Fort Wayne Ann Arbor vs Cleveland Ann Arbor vs Columbus Ann Arbor vs Chicago

Nearby cities

Detroit, MI 36 mi Grand Rapids, MI 109 mi Fort Wayne, IN 110 mi Cleveland, OH 118 mi Columbus, OH 165 mi Chicago, IL 201 mi

Sources: US Census Bureau, ACS 5-Year (rent, income, home value, demographics); NOAA Climate Normals 1981-2010 (climate); EIA (gas, utilities); BLS Average Price Data (groceries) & OEWS (metro wage); transit agencies (fares); FBI Crime Data Explorer (crime); Tax Foundation 2026 (state taxes). Monthly estimate = 1BR rent + utilities; not a full cost of living.