Living Cost Compare
Ann Arbor

Michigan

$1,630/mo est.

vs
Nashville

Tennessee

$1,500/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 $1,500 in Nashville, TN. Overall, Nashville, TN is roughly 8% cheaper to live in day-to-day than Ann Arbor, MI, driven mainly by electricity costs.

Median household income is $81,089 in Ann Arbor, MI and $75,197 in Nashville, TN — about 7% higher in Ann Arbor, MI. Michigan has a top state income tax rate of 4.25% and a 6% state sales tax; Tennessee has no state income tax and a 7% state sales tax.

Rent

Studio
$1,274
$1,341
+5% in Nashville, TN
1 Bedroom
$1,389
$1,336
+4% in Ann Arbor, MI
2 Bedroom
$1,692
$1,478
+13% in Ann Arbor, MI
3 Bedroom
$1,812
$1,832
+1% in Nashville, TN

Buying a Home

Median Home Value
$435,100
$383,100
+12% in Ann Arbor, MI

Income

Median Household Income
$81,089
$75,197
+7% in Ann Arbor, MI
Metro Median Wage (annual)
$55,380
$50,390
+9% in Ann Arbor, MI

People & Lifestyle

Median Age
27.7 yr
34.4 yr
+6.7 yr in Nashville, TN
Homeownership
45.6%
53.0%
+7.4 pp in Nashville, TN
Bachelor's+ (25+)
77.7%
46.9%
+30.8 pp in Ann Arbor, MI
Avg Commute
19.9 min
24.9 min
+5.0 min in Nashville, TN

Crime (per 100k/yr)

Violent Crime
311
1,178.7
+279% in Nashville, TN
Property Crime
1,744.5
4,558.5
+161% in Nashville, TN

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
59.4°F
+11.7°F in Nashville, TN
Annual Precipitation
32.8 in
47.3 in
+14.4 in in Nashville, TN

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)
$2.00

Adult base one-way fare — vs WeGo Public Transit (2026).

Utilities

Electricity (¢/kWh)
23.0
14.1
+39% in Ann Arbor, MI
Natural Gas ($/MCF)
$19.72
$19.75
+0% in Nashville, TN

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 Nashville, TN
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 / TN)
6%
7%
+1.0 pp in TN
Income Tax (top rate)
4.25%
None
+4.3 pp in MI

Ann Arbor vs Nashville — FAQ

Is it cheaper to live in Ann Arbor or Nashville?
Nashville, TN is cheaper. Its monthly baseline of $1,500 (1BR rent + utilities) runs about 8% below Ann Arbor, MI's $1,630, mainly because of electricity costs.
How much more do you need to earn to live in Ann Arbor than in Nashville?
To keep rent near the recommended 30% of gross income, you'd want to earn roughly $56,000 a year in Ann Arbor versus $53,000 in Nashville.
Which has lower taxes, Ann Arbor or Nashville?
Ann Arbor is taxed under Michigan's rules (a top state income tax rate of 4.25% and a 6% state sales tax); Nashville under Tennessee's (no state income tax 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).