Living Cost Compare
Ann Arbor

Michigan

$1,630/mo est.

vs
Louisville

Kentucky

$1,070/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 $1,070 in Louisville, KY. Overall, Louisville, KY is roughly 34% 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 $64,731 in Louisville, KY — about 20% higher in Ann Arbor, MI. Michigan has a top state income tax rate of 4.25% and a 6% state sales tax; Kentucky has a top state income tax rate of 3.50% and a 6% state sales tax.

Ann Arbor, MI
Louisville, KY

Rent

Studio
$1,274
$786
+38% in Ann Arbor, MI
1 Bedroom
$1,389
$877
+37% in Ann Arbor, MI
2 Bedroom
$1,692
$1,096
+35% in Ann Arbor, MI
3 Bedroom
$1,812
$1,299
+28% in Ann Arbor, MI

Buying a Home

Median Home Value
$435,100
$221,500
+49% in Ann Arbor, MI

Income

Median Household Income
$81,089
$64,731
+20% in Ann Arbor, MI
Metro Median Wage (annual)
$55,380
$48,370
+13% in Ann Arbor, MI

People & Lifestyle

Median Age
27.7 yr
37.7 yr
+10.0 yr in Louisville, KY
Homeownership
45.6%
60.6%
+15.0 pp in Louisville, KY
Bachelor's+ (25+)
77.7%
33.4%
+44.3 pp in Ann Arbor, MI
Avg Commute
19.9 min
22.7 min
+2.8 min in Louisville, KY

Crime (per 100k/yr)

Violent Crime
311
763.4
+145% in Louisville, KY
Property Crime
1,744.5
3,536.6
+103% in Louisville, KY

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
58.2°F
+10.5°F in Louisville, KY
Annual Precipitation
32.8 in
44.9 in
+12.1 in in Louisville, KY

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 TARC (2026).

Utilities

Electricity (¢/kWh)
23.0
14.3
+38% in Ann Arbor, MI
Natural Gas ($/MCF)
$19.72
$33.20
+68% in Louisville, KY

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 Louisville, KY
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
$0.62
about equal

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

State Taxes

Sales Tax (MI / KY)
6%
6%
about equal
Income Tax (top rate)
4.25%
3.50%
+0.8 pp in MI

Ann Arbor vs Louisville — FAQ

Is it cheaper to live in Ann Arbor or Louisville?
Louisville, KY is cheaper. Its monthly baseline of $1,070 (1BR rent + utilities) runs about 34% 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 Louisville?
To keep rent near the recommended 30% of gross income, you'd want to earn roughly $56,000 a year in Ann Arbor versus $35,000 in Louisville.
Which has lower taxes, Ann Arbor or Louisville?
Ann Arbor is taxed under Michigan's rules (a top state income tax rate of 4.25% and a 6% state sales tax); Louisville under Kentucky's (a top state income tax rate of 3.50% 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).