Living Cost Compare
Ann Arbor

Michigan

$1,630/mo est.

vs
Rochester

Minnesota

$1,290/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 $1,290 in Rochester, MN. Overall, Rochester, MN is roughly 21% 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 $87,767 in Rochester, MN — about 8% higher in Rochester, MN. Michigan has a top state income tax rate of 4.25% and a 6% state sales tax; Minnesota has a top state income tax rate of 9.85% and a 6.875% state sales tax.

Ann Arbor, MI
Rochester, MN

Rent

Studio
$1,274
$1,080
+15% in Ann Arbor, MI
1 Bedroom
$1,389
$1,106
+20% in Ann Arbor, MI
2 Bedroom
$1,692
$1,243
+27% in Ann Arbor, MI
3 Bedroom
$1,812
$1,646
+9% in Ann Arbor, MI

Buying a Home

Median Home Value
$435,100
$287,500
+34% in Ann Arbor, MI

Income

Median Household Income
$81,089
$87,767
+8% in Rochester, MN
Metro Median Wage (annual)
$55,380
$60,620
+9% in Rochester, MN

People & Lifestyle

Median Age
27.7 yr
36.4 yr
+8.7 yr in Rochester, MN
Homeownership
45.6%
65.4%
+19.8 pp in Rochester, MN
Bachelor's+ (25+)
77.7%
50.1%
+27.6 pp in Ann Arbor, MI
Avg Commute
19.9 min
17.2 min
+2.7 min in Ann Arbor, MI

Crime (per 100k/yr)

Violent Crime
311
158.9
+49% in Ann Arbor, MI
Property Crime
1,744.5
1,379
+21% in Ann Arbor, MI

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
45.4°F
+2.3°F in Ann Arbor, MI
Annual Precipitation
32.8 in
33.0 in
+0.2 in in Rochester, MN

Gas

Regular Gasoline
$3.85/gal
$3.96/gal
+3% in Rochester, MN

Area: Midwest (PADD 2) vs Minnesota.

Utilities

Electricity (¢/kWh)
23.0
17.5
+24% in Ann Arbor, MI
Natural Gas ($/MCF)
$19.72
$14.79
+25% in Ann Arbor, MI

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 / MN)
6%
6.875%
+0.9 pp in MN
Income Tax (top rate)
4.25%
9.85%
+5.6 pp in MN

Ann Arbor vs Rochester — FAQ

Is it cheaper to live in Ann Arbor or Rochester?
Rochester, MN is cheaper. Its monthly baseline of $1,290 (1BR rent + utilities) runs about 21% 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 Rochester?
To keep rent near the recommended 30% of gross income, you'd want to earn roughly $56,000 a year in Ann Arbor versus $44,000 in Rochester.
Which has lower taxes, Ann Arbor or Rochester?
Ann Arbor is taxed under Michigan's rules (a top state income tax rate of 4.25% and a 6% state sales tax); Rochester under Minnesota's (a top state income tax rate of 9.85% and a 6.875% 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).