Living Cost Compare
Ann Arbor

Michigan

$1,630/mo est.

vs
Indianapolis

Indiana

$1,160/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 $1,160 in Indianapolis, IN. Overall, Indianapolis, IN is roughly 29% 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 $62,995 in Indianapolis, IN — about 22% higher in Ann Arbor, MI. Michigan has a top state income tax rate of 4.25% and a 6% state sales tax; Indiana has a top state income tax rate of 2.95% and a 7% state sales tax.

Ann Arbor, MI
Indianapolis, IN

Rent

Studio
$1,274
$933
+27% in Ann Arbor, MI
1 Bedroom
$1,389
$963
+31% in Ann Arbor, MI
2 Bedroom
$1,692
$1,132
+33% in Ann Arbor, MI
3 Bedroom
$1,812
$1,304
+28% in Ann Arbor, MI

Buying a Home

Median Home Value
$435,100
$207,000
+52% in Ann Arbor, MI

Income

Median Household Income
$81,089
$62,995
+22% in Ann Arbor, MI
Metro Median Wage (annual)
$55,380
$49,340
+11% in Ann Arbor, MI

People & Lifestyle

Median Age
27.7 yr
34.1 yr
+6.4 yr in Indianapolis, IN
Homeownership
45.6%
55.3%
+9.7 pp in Indianapolis, IN
Bachelor's+ (25+)
77.7%
34.2%
+43.5 pp in Ann Arbor, MI
Avg Commute
19.9 min
24.3 min
+4.4 min in Indianapolis, IN

Crime (per 100k/yr)

Violent Crime
311
936.6
+201% in Indianapolis, IN
Property Crime
1,744.5
3,351.7
+92% in Indianapolis, IN

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
53.2°F
+5.5°F in Indianapolis, IN
Annual Precipitation
32.8 in
42.4 in
+9.6 in in Indianapolis, IN

Gas

Regular Gasoline
$3.85/gal
$3.85/gal
about equal

Area: Midwest (PADD 2) vs Midwest (PADD 2).

Public Transit

Base Fare (one-way)
—
$1.75

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

Utilities

Electricity (¢/kWh)
23.0
17.5
+24% in Ann Arbor, MI
Natural Gas ($/MCF)
$19.72
$24.52
+24% in Indianapolis, IN

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

Groceries

Milk (gal)
$4.31
$4.31
about equal
Bread (lb)
$1.66
$1.66
about equal
Eggs (doz)
$3.63
$3.63
about equal
Ground Beef (lb)
$6.77
$6.77
about equal
Chicken (lb)
$2.10
$2.10
about equal
Bananas (lb)
$0.62
$0.62
about equal

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

State Taxes

Sales Tax (MI / IN)
6%
7%
+1.0 pp in IN
Income Tax (top rate)
4.25%
2.95%
+1.3 pp in MI

Ann Arbor vs Indianapolis — FAQ

Is it cheaper to live in Ann Arbor or Indianapolis?
Indianapolis, IN is cheaper. Its monthly baseline of $1,160 (1BR rent + utilities) runs about 29% 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 Indianapolis?
To keep rent near the recommended 30% of gross income, you'd want to earn roughly $56,000 a year in Ann Arbor versus $39,000 in Indianapolis.
Which has lower taxes, Ann Arbor or Indianapolis?
Ann Arbor is taxed under Michigan's rules (a top state income tax rate of 4.25% and a 6% state sales tax); Indianapolis under Indiana's (a top state income tax rate of 2.95% and a 7% 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).