Is it cheaper to live in Ann Arbor or Baltimore?

Baltimore, MD is cheaper. Its monthly baseline of $1,300 (1BR rent + utilities) runs about 20% below Ann Arbor, MI's $1,630, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $56,000 a year in Ann Arbor versus $43,000 in Baltimore.

Which has lower taxes, Ann Arbor or Baltimore?

Ann Arbor is taxed under Michigan's rules (a top state income tax rate of 4.25% and a 6% state sales tax); Baltimore under Maryland's (a top state income tax rate of 6.50% and a 6% state sales tax).

Ann Arbor vs Baltimore Cost of Living 2026

Ann Arbor

Michigan

$1,630/mo est.

Baltimore

Maryland

$1,300/mo est.

Monthly estimate = 1BR rent + electricity + gas

A one-person monthly baseline (1BR rent plus typical utilities) runs $1,630 in Ann Arbor, MI versus $1,300 in Baltimore, MD. Overall, Baltimore, MD is roughly 20% cheaper to live in day-to-day than Ann Arbor, MI, driven mainly by rent.

Median household income is $81,089 in Ann Arbor, MI and $59,623 in Baltimore, MD — about 26% higher in Ann Arbor, MI. Michigan has a top state income tax rate of 4.25% and a 6% state sales tax; Maryland has a top state income tax rate of 6.50% and a 6% state sales tax.

Ann Arbor, MI

Baltimore, MD

Rent

Studio

$1,274

$1,050

+18% in Ann Arbor, MI

1 Bedroom

$1,389

$1,073

+23% in Ann Arbor, MI

2 Bedroom

$1,692

$1,353

+20% in Ann Arbor, MI

3 Bedroom

$1,812

$1,555

+14% in Ann Arbor, MI

Buying a Home

Median Home Value

$435,100

$219,300

+50% in Ann Arbor, MI

Income

Median Household Income

$81,089

$59,623

+26% in Ann Arbor, MI

Metro Median Wage (annual)

$55,380

$59,070

+7% in Baltimore, MD

People & Lifestyle

Median Age

27.7 yr

36.1 yr

+8.4 yr in Baltimore, MD

Homeownership

45.6%

47.5%

+1.9 pp in Baltimore, MD

Bachelor's+ (25+)

77.7%

35.4%

+42.3 pp in Ann Arbor, MI

Avg Commute

19.9 min

29.4 min

+9.5 min in Baltimore, MD

Crime (per 100k/yr)

Violent Crime

311

1,616.7

+420% in Baltimore, MD

Property Crime

1,744.5

4,202.6

+141% in Baltimore, MD

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

Climate

Avg Annual Temperature

47.7°F

61.4°F

+13.7°F in Baltimore, MD

Annual Precipitation

32.8 in

42.4 in

+9.6 in in Baltimore, MD

Gas

Regular Gasoline

$3.85/gal

$3.94/gal

+2% in Baltimore, MD

Area: Midwest (PADD 2) vs East Coast (PADD 1).

Public Transit

Base Fare (one-way)

—

$2.00

Adult base one-way fare — — vs MTA Maryland (2026).

Utilities

Electricity (¢/kWh)

23.0

21.8

+5% in Ann Arbor, MI

Natural Gas ($/MCF)

$19.72

$22.57

+14% in Baltimore, MD

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

Groceries

Milk (gal)

$4.31

$4.00

+7% in Ann Arbor, MI

Bread (lb)

$1.66

$1.75

+5% in Baltimore, MD

Eggs (doz)

$3.63

$2.21

+39% in Ann Arbor, MI

Ground Beef (lb)

$6.77

$6.45

+5% in Ann Arbor, MI

Chicken (lb)

$2.10

$1.90

+9% in Ann Arbor, MI

Bananas (lb)

$0.62

about equal

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

State Taxes

Sales Tax (MI / MD)

about equal

Income Tax (top rate)

4.25%

6.50%

+2.3 pp in MD

Ann Arbor vs Baltimore — FAQ

Is it cheaper to live in Ann Arbor or Baltimore?: Baltimore, MD is cheaper. Its monthly baseline of $1,300 (1BR rent + utilities) runs about 20% below Ann Arbor, MI's $1,630, mainly because of rent.
How much more do you need to earn to live in Ann Arbor than in Baltimore?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $56,000 a year in Ann Arbor versus $43,000 in Baltimore.
Which has lower taxes, Ann Arbor or Baltimore?: Ann Arbor is taxed under Michigan's rules (a top state income tax rate of 4.25% and a 6% state sales tax); Baltimore under Maryland's (a top state income tax rate of 6.50% 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).