Is it cheaper to live in Ann Arbor or Houston?

Houston, TX is cheaper. Its monthly baseline of $1,360 (1BR rent + utilities) runs about 17% 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 Houston?

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $56,000 a year in Ann Arbor versus $46,000 in Houston.

Which has lower taxes, Ann Arbor or Houston?

Ann Arbor is taxed under Michigan's rules (a top state income tax rate of 4.25% and a 6% state sales tax); Houston under Texas's (no state income tax and a 6.25% state sales tax).

Ann Arbor vs Houston Cost of Living 2026

Ann Arbor

Michigan

$1,630/mo est.

Houston

Texas

$1,360/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 $1,360 in Houston, TX. Overall, Houston, TX is roughly 17% 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 $62,894 in Houston, TX — about 22% higher in Ann Arbor, MI. Michigan has a top state income tax rate of 4.25% and a 6% state sales tax; Texas has no state income tax and a 6.25% state sales tax.

Ann Arbor, MI

Houston, TX

Rent

Studio

$1,274

$1,142

+10% in Ann Arbor, MI

1 Bedroom

$1,389

$1,156

+17% in Ann Arbor, MI

2 Bedroom

$1,692

$1,375

+19% in Ann Arbor, MI

3 Bedroom

$1,812

$1,664

+8% in Ann Arbor, MI

Buying a Home

Median Home Value

$435,100

$253,400

+42% in Ann Arbor, MI

Income

Median Household Income

$81,089

$62,894

+22% in Ann Arbor, MI

Metro Median Wage (annual)

$55,380

$49,410

+11% in Ann Arbor, MI

People & Lifestyle

Median Age

27.7 yr

34.3 yr

+6.6 yr in Houston, TX

Homeownership

45.6%

42.0%

+3.6 pp in Ann Arbor, MI

Bachelor's+ (25+)

77.7%

36.0%

+41.7 pp in Ann Arbor, MI

Avg Commute

19.9 min

27.3 min

+7.4 min in Houston, TX

Crime (per 100k/yr)

Violent Crime

311

1,153.8

+271% in Houston, TX

Property Crime

1,744.5

4,324.9

+148% in Houston, TX

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

70.3°F

+22.6°F in Houston, TX

Annual Precipitation

32.8 in

54.6 in

+21.8 in in Houston, TX

Gas

Regular Gasoline

$3.85/gal

$3.52/gal

+8% in Ann Arbor, MI

Area: Midwest (PADD 2) vs Houston.

Public Transit

Base Fare (one-way)

—

$1.25

Adult base one-way fare — — vs Houston METRO (2026).

Utilities

Electricity (¢/kWh)

23.0

15.9

+31% in Ann Arbor, MI

Natural Gas ($/MCF)

$19.72

$31.89

+62% in Houston, TX

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 Houston, TX

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 / TX)

6.25%

+0.3 pp in TX

Income Tax (top rate)

4.25%

None

+4.3 pp in MI

Ann Arbor vs Houston — FAQ

Is it cheaper to live in Ann Arbor or Houston?: Houston, TX is cheaper. Its monthly baseline of $1,360 (1BR rent + utilities) runs about 17% 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 Houston?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $56,000 a year in Ann Arbor versus $46,000 in Houston.
Which has lower taxes, Ann Arbor or Houston?: Ann Arbor is taxed under Michigan's rules (a top state income tax rate of 4.25% and a 6% state sales tax); Houston under Texas's (no state income tax and a 6.25% 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).