Is it cheaper to live in Ann Arbor or Fayetteville?

Fayetteville, AR is cheaper. Its monthly baseline of $990 (1BR rent + utilities) runs about 39% 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 Fayetteville?

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $56,000 a year in Ann Arbor versus $33,000 in Fayetteville.

Which has lower taxes, Ann Arbor or Fayetteville?

Ann Arbor is taxed under Michigan's rules (a top state income tax rate of 4.25% and a 6% state sales tax); Fayetteville under Arkansas's (a top state income tax rate of 3.90% and a 6.5% state sales tax).

Ann Arbor vs Fayetteville Cost of Living 2026

Ann Arbor

Michigan

$1,630/mo est.

Fayetteville

Arkansas

$990/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 $990 in Fayetteville, AR. Overall, Fayetteville, AR is roughly 39% 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 $59,074 in Fayetteville, AR — about 27% higher in Ann Arbor, MI. Michigan has a top state income tax rate of 4.25% and a 6% state sales tax; Arkansas has a top state income tax rate of 3.90% and a 6.5% state sales tax.

Ann Arbor, MI

Fayetteville, AR

Rent

Studio

$1,274

$709

+44% in Ann Arbor, MI

1 Bedroom

$1,389

$817

+41% in Ann Arbor, MI

2 Bedroom

$1,692

$999

+41% in Ann Arbor, MI

3 Bedroom

$1,812

$1,430

+21% in Ann Arbor, MI

Buying a Home

Median Home Value

$435,100

$322,500

+26% in Ann Arbor, MI

Income

Median Household Income

$81,089

$59,074

+27% in Ann Arbor, MI

Metro Median Wage (annual)

$55,380

$46,610

+16% in Ann Arbor, MI

People & Lifestyle

Median Age

27.7 yr

28.7 yr

+1.0 yr in Fayetteville, AR

Homeownership

45.6%

41.9%

+3.7 pp in Ann Arbor, MI

Bachelor's+ (25+)

77.7%

49.8%

+27.9 pp in Ann Arbor, MI

Avg Commute

19.9 min

18.2 min

+1.7 min in Ann Arbor, MI

Crime (per 100k/yr)

Violent Crime

311

429.4

+38% in Fayetteville, AR

Property Crime

1,744.5

2,392.2

+37% in Fayetteville, AR

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

57.1°F

+9.4°F in Fayetteville, AR

Annual Precipitation

32.8 in

48.5 in

+15.7 in in Fayetteville, AR

Gas

Regular Gasoline

$3.85/gal

$3.62/gal

+6% in Ann Arbor, MI

Area: Midwest (PADD 2) vs Gulf Coast (PADD 3).

Utilities

Electricity (¢/kWh)

23.0

14.1

+39% in Ann Arbor, MI

Natural Gas ($/MCF)

$19.72

$27.86

+41% in Fayetteville, AR

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 Fayetteville, AR

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 / AR)

6.5%

+0.5 pp in AR

Income Tax (top rate)

4.25%

3.90%

+0.4 pp in MI

Ann Arbor vs Fayetteville — FAQ

Is it cheaper to live in Ann Arbor or Fayetteville?: Fayetteville, AR is cheaper. Its monthly baseline of $990 (1BR rent + utilities) runs about 39% 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 Fayetteville?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $56,000 a year in Ann Arbor versus $33,000 in Fayetteville.
Which has lower taxes, Ann Arbor or Fayetteville?: Ann Arbor is taxed under Michigan's rules (a top state income tax rate of 4.25% and a 6% state sales tax); Fayetteville under Arkansas's (a top state income tax rate of 3.90% and a 6.5% 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).