Is it cheaper to live in Ann Arbor or Richmond?

Richmond, VA is cheaper. Its monthly baseline of $1,400 (1BR rent + utilities) runs about 14% 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 Richmond?

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $56,000 a year in Ann Arbor versus $48,000 in Richmond.

Which has lower taxes, Ann Arbor or Richmond?

Ann Arbor is taxed under Michigan's rules (a top state income tax rate of 4.25% and a 6% state sales tax); Richmond under Virginia's (a top state income tax rate of 5.75% and a 5.3% state sales tax).

Ann Arbor vs Richmond Cost of Living 2026

Ann Arbor

Michigan

$1,630/mo est.

Richmond

Virginia

$1,400/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 $1,400 in Richmond, VA. Overall, Richmond, VA is roughly 14% 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 $62,671 in Richmond, VA — about 23% higher in Ann Arbor, MI. Michigan has a top state income tax rate of 4.25% and a 6% state sales tax; Virginia has a top state income tax rate of 5.75% and a 5.3% state sales tax.

Ann Arbor, MI

Richmond, VA

Rent

Studio

$1,274

$1,183

+7% in Ann Arbor, MI

1 Bedroom

$1,389

$1,195

+14% in Ann Arbor, MI

2 Bedroom

$1,692

$1,374

+19% in Ann Arbor, MI

3 Bedroom

$1,812

$1,447

+20% in Ann Arbor, MI

Buying a Home

Median Home Value

$435,100

$328,100

+25% in Ann Arbor, MI

Income

Median Household Income

$81,089

$62,671

+23% in Ann Arbor, MI

Metro Median Wage (annual)

$55,380

$51,460

+7% in Ann Arbor, MI

People & Lifestyle

Median Age

27.7 yr

34.5 yr

+6.8 yr in Richmond, VA

Homeownership

45.6%

43.5%

+2.1 pp in Ann Arbor, MI

Bachelor's+ (25+)

77.7%

44.1%

+33.6 pp in Ann Arbor, MI

Avg Commute

19.9 min

22.1 min

+2.2 min in Richmond, VA

Crime (per 100k/yr)

Violent Crime

311

349

+12% in Richmond, VA

Property Crime

1,744.5

3,240.2

+86% in Richmond, VA

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

58.9°F

+11.2°F in Richmond, VA

Annual Precipitation

32.8 in

43.6 in

+10.8 in in Richmond, VA

Gas

Regular Gasoline

$3.85/gal

$3.94/gal

+2% in Richmond, VA

Area: Midwest (PADD 2) vs East Coast (PADD 1).

Utilities

Electricity (¢/kWh)

23.0

17.2

+25% in Ann Arbor, MI

Natural Gas ($/MCF)

$19.72

$27.20

+38% in Richmond, VA

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 Richmond, VA

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 / VA)

5.3%

+0.7 pp in MI

Income Tax (top rate)

4.25%

5.75%

+1.5 pp in VA

Ann Arbor vs Richmond — FAQ

Is it cheaper to live in Ann Arbor or Richmond?: Richmond, VA is cheaper. Its monthly baseline of $1,400 (1BR rent + utilities) runs about 14% 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 Richmond?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $56,000 a year in Ann Arbor versus $48,000 in Richmond.
Which has lower taxes, Ann Arbor or Richmond?: Ann Arbor is taxed under Michigan's rules (a top state income tax rate of 4.25% and a 6% state sales tax); Richmond under Virginia's (a top state income tax rate of 5.75% and a 5.3% 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).