Is it cheaper to live in Anchorage or Davenport?

Davenport, IA is cheaper. Its monthly baseline of $960 (1BR rent + utilities) runs about 28% below Anchorage, AK's $1,330, mainly because of rent.

How much more do you need to earn to live in Anchorage than in Davenport?

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $42,000 a year in Anchorage versus $31,000 in Davenport.

Which has lower taxes, Anchorage or Davenport?

Anchorage is taxed under Alaska's rules (no state income tax and no state sales tax); Davenport under Iowa's (a top state income tax rate of 3.80% and a 6% state sales tax).

Anchorage vs Davenport Cost of Living 2026

Anchorage

Alaska

$1,330/mo est.

Davenport

Iowa

$960/mo est.

Monthly estimate = 1BR rent + electricity + gas

A one-person monthly baseline (1BR rent plus typical utilities) runs $1,330 in Anchorage, AK versus $960 in Davenport, IA. Overall, Davenport, IA is roughly 28% cheaper to live in day-to-day than Anchorage, AK, driven mainly by rent.

Median household income is $98,152 in Anchorage, AK and $64,497 in Davenport, IA — about 34% higher in Anchorage, AK. Alaska has no state income tax and no state sales tax; Iowa has a top state income tax rate of 3.80% and a 6% state sales tax.

Anchorage, AK

Davenport, IA

Rent

Studio

$1,001

$726

+27% in Anchorage, AK

1 Bedroom

$1,052

$777

+26% in Anchorage, AK

2 Bedroom

$1,433

$962

+33% in Anchorage, AK

3 Bedroom

$1,952

$1,117

+43% in Anchorage, AK

Buying a Home

Median Home Value

$375,900

$162,900

+57% in Anchorage, AK

Income

Median Household Income

$98,152

$64,497

+34% in Anchorage, AK

Metro Median Wage (annual)

$60,200

$48,550

+19% in Anchorage, AK

People & Lifestyle

Median Age

34.9 yr

37.8 yr

+2.9 yr in Davenport, IA

Homeownership

63.7%

63.0%

+0.7 pp in Anchorage, AK

Bachelor's+ (25+)

37.7%

30.0%

+7.7 pp in Anchorage, AK

Avg Commute

19.0 min

18.7 min

+0.3 min in Anchorage, AK

Crime (per 100k/yr)

Violent Crime

1,016.5

581.4

+43% in Anchorage, AK

Property Crime

2,796.2

3,559.6

+27% in Davenport, IA

FBI Crime Data Explorer. Offenses per 100,000 residents per year; agency reporting practices vary, so this is approximate.

Climate

Avg Annual Temperature

37.4°F

49.3°F

+11.9°F in Davenport, IA

Annual Precipitation

17.9 in

36.0 in

+18.1 in in Davenport, IA

Gas

Regular Gasoline

$5.21/gal

$3.85/gal

+26% in Anchorage, AK

Area: West Coast (PADD 5) vs Midwest (PADD 2).

Utilities

Electricity (¢/kWh)

28.2

15.9

+44% in Anchorage, AK

Natural Gas ($/MCF)

$17.35

$22.16

+28% in Davenport, IA

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

Groceries

Milk (gal)

$4.82

$4.31

+10% in Anchorage, AK

Bread (lb)

$2.04

$1.66

+19% in Anchorage, AK

Eggs (doz)

$2.19

$3.63

+66% in Davenport, IA

Ground Beef (lb)

$7.36

$6.77

+8% in Anchorage, AK

Chicken (lb)

$2.01

$2.10

+4% in Davenport, IA

Bananas (lb)

$0.70

$0.62

+12% in Anchorage, AK

Average prices — West vs Midwest (BLS). Regional where available, otherwise U.S. average.

State Taxes

Sales Tax (AK / IA)

None

+6.0 pp in IA

Income Tax (top rate)

None

3.80%

+3.8 pp in IA

Anchorage vs Davenport — FAQ

Is it cheaper to live in Anchorage or Davenport?: Davenport, IA is cheaper. Its monthly baseline of $960 (1BR rent + utilities) runs about 28% below Anchorage, AK's $1,330, mainly because of rent.
How much more do you need to earn to live in Anchorage than in Davenport?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $42,000 a year in Anchorage versus $31,000 in Davenport.
Which has lower taxes, Anchorage or Davenport?: Anchorage is taxed under Alaska's rules (no state income tax and no state sales tax); Davenport under Iowa's (a top state income tax rate of 3.80% and a 6% state sales tax).

Sources: US Census Bureau, ACS 5-Year (rent, income, home value, demographics); NOAA Climate Normals 1981–2010 (climate); EIA weekly retail (gas); Tax Foundation 2026 (state taxes).