Is it cheaper to live in Billings or Fairbanks?

Billings, MT is cheaper. Its monthly baseline of $1,040 (1BR rent + utilities) runs about 23% below Fairbanks, AK's $1,350, mainly because of rent.

How much more do you need to earn to live in Billings than in Fairbanks?

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $36,000 a year in Billings versus $43,000 in Fairbanks.

Which has lower taxes, Billings or Fairbanks?

Billings is taxed under Montana's rules (a top state income tax rate of 5.65% and no state sales tax); Fairbanks under Alaska's (no state income tax and no state sales tax).

Billings vs Fairbanks Cost of Living 2026

Billings

Montana

$1,040/mo est.

Fairbanks

Alaska

$1,350/mo est.

Monthly estimate = 1BR rent + electricity + gas

A one-person monthly baseline (1BR rent plus typical utilities) runs $1,040 in Billings, MT versus $1,350 in Fairbanks, AK. Overall, Billings, MT is roughly 23% cheaper to live in day-to-day than Fairbanks, AK, driven mainly by rent.

Median household income is $71,855 in Billings, MT and $72,077 in Fairbanks, AK. Montana has a top state income tax rate of 5.65% and no state sales tax; Alaska has no state income tax and no state sales tax.

Billings, MT

Fairbanks, AK

Rent

Studio

$877

$883

+1% in Fairbanks, AK

1 Bedroom

$889

$1,076

+21% in Fairbanks, AK

2 Bedroom

$1,102

$1,428

+30% in Fairbanks, AK

3 Bedroom

$1,398

$2,019

+44% in Fairbanks, AK

Buying a Home

Median Home Value

$311,800

$255,700

+18% in Billings, MT

Income

Median Household Income

$71,855

$72,077

+0% in Fairbanks, AK

Metro Median Wage (annual)

$49,060

$61,810

+26% in Fairbanks, AK

People & Lifestyle

Median Age

38.1 yr

28.6 yr

+9.5 yr in Billings, MT

Homeownership

64.8%

40.5%

+24.3 pp in Billings, MT

Bachelor's+ (25+)

37.0%

26.5%

+10.5 pp in Billings, MT

Avg Commute

16.7 min

14.1 min

+2.6 min in Billings, MT

Crime (per 100k/yr)

Violent Crime

750.2

726.1

+3% in Billings, MT

Property Crime

3,123.5

3,504.2

+12% in Fairbanks, AK

FBI Crime Data Explorer. Offenses per 100,000 residents per year; agency reporting practices vary, so this is approximate.

Climate

Avg Annual Temperature

48.2°F

27.7°F

+20.5°F in Billings, MT

Annual Precipitation

13.7 in

10.8 in

+2.8 in in Billings, MT

Gas

Regular Gasoline

$4.27/gal

$5.21/gal

+22% in Fairbanks, AK

Area: Rocky Mountain (PADD 4) vs West Coast (PADD 5).

Utilities

Electricity (¢/kWh)

15.1

28.2

+86% in Fairbanks, AK

Natural Gas ($/MCF)

$10.12

$17.35

+71% in Fairbanks, AK

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

Groceries

Milk (gal)

$4.82

about equal

Bread (lb)

$2.04

about equal

Eggs (doz)

$2.19

about equal

Ground Beef (lb)

$7.36

about equal

Chicken (lb)

$2.01

about equal

Bananas (lb)

$0.70

about equal

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

State Taxes

Sales Tax (MT / AK)

None

about equal

Income Tax (top rate)

5.65%

None

+5.7 pp in MT

Billings vs Fairbanks — FAQ

Is it cheaper to live in Billings or Fairbanks?: Billings, MT is cheaper. Its monthly baseline of $1,040 (1BR rent + utilities) runs about 23% below Fairbanks, AK's $1,350, mainly because of rent.
How much more do you need to earn to live in Billings than in Fairbanks?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $36,000 a year in Billings versus $43,000 in Fairbanks.
Which has lower taxes, Billings or Fairbanks?: Billings is taxed under Montana's rules (a top state income tax rate of 5.65% and no state sales tax); Fairbanks under Alaska's (no state income tax and no 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).