Is it cheaper to live in Detroit or Memphis?

Detroit, MI is cheaper. Its monthly baseline of $970 (1BR rent + utilities) runs about 13% below Memphis, TN's $1,110, mainly because of rent.

How much more do you need to earn to live in Detroit than in Memphis?

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $30,000 a year in Detroit versus $38,000 in Memphis.

Which has lower taxes, Detroit or Memphis?

Detroit is taxed under Michigan's rules (a top state income tax rate of 4.25% and a 6% state sales tax); Memphis under Tennessee's (no state income tax and a 7% state sales tax).

Detroit vs Memphis Cost of Living 2026

Detroit

Michigan

$970/mo est.

Memphis

Tennessee

$1,110/mo est.

Monthly estimate = 1BR rent + electricity + gas

A one-person monthly baseline (1BR rent plus typical utilities) runs $970 in Detroit, MI versus $1,110 in Memphis, TN. Overall, Detroit, MI is roughly 13% cheaper to live in day-to-day than Memphis, TN, driven mainly by rent.

Median household income is $39,575 in Detroit, MI and $51,211 in Memphis, TN — about 23% higher in Memphis, TN. 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.

Detroit, MI

Memphis, TN

Rent

Studio

$801

$877

+9% in Memphis, TN

1 Bedroom

$752

$948

+26% in Memphis, TN

2 Bedroom

$1,001

$1,073

+7% in Memphis, TN

3 Bedroom

$1,195

$1,281

+7% in Memphis, TN

Buying a Home

Median Home Value

$76,800

$157,100

+105% in Memphis, TN

Income

Median Household Income

$39,575

$51,211

+29% in Memphis, TN

Metro Median Wage (annual)

$52,080

$46,890

+10% in Detroit, MI

People & Lifestyle

Median Age

35.1 yr

34.3 yr

+0.8 yr in Detroit, MI

Homeownership

49.7%

46.0%

+3.7 pp in Detroit, MI

Bachelor's+ (25+)

17.6%

28.2%

+10.6 pp in Memphis, TN

Avg Commute

25.4 min

21.3 min

+4.1 min in Detroit, MI

Crime (per 100k/yr)

Violent Crime

1,783.4

2,507.6

+41% in Memphis, TN

Property Crime

4,391.6

6,966.3

+59% in Memphis, TN

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

Climate

Avg Annual Temperature

50.3°F

63.1°F

+12.8°F in Memphis, TN

Annual Precipitation

31.3 in

53.7 in

+22.4 in in Memphis, TN

Gas

Regular Gasoline

$3.94/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 MATA (2026).

Utilities

Electricity (¢/kWh)

22.0

14.5

+34% in Detroit, MI

Natural Gas ($/MCF)

$14.07

$16.83

+20% in Memphis, TN

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

Groceries

Milk (gal)

$4.31

$4.00

+7% in Detroit, MI

Bread (lb)

$1.66

$1.75

+5% in Memphis, TN

Eggs (doz)

$3.63

$2.21

+39% in Detroit, MI

Ground Beef (lb)

$6.77

$6.45

+5% in Detroit, MI

Chicken (lb)

$2.10

$1.90

+9% in Detroit, 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 / TN)

+1.0 pp in TN

Income Tax (top rate)

4.25%

None

+4.3 pp in MI

Detroit vs Memphis — FAQ

Is it cheaper to live in Detroit or Memphis?: Detroit, MI is cheaper. Its monthly baseline of $970 (1BR rent + utilities) runs about 13% below Memphis, TN's $1,110, mainly because of rent.
How much more do you need to earn to live in Detroit than in Memphis?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $30,000 a year in Detroit versus $38,000 in Memphis.
Which has lower taxes, Detroit or Memphis?: Detroit is taxed under Michigan's rules (a top state income tax rate of 4.25% and a 6% state sales tax); Memphis 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).