Is it cheaper to live in Fairbanks or Richmond?

Fairbanks, AK is cheaper. Its monthly baseline of $1,350 (1BR rent + utilities) runs about 4% below Richmond, VA's $1,400, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $43,000 a year in Fairbanks versus $48,000 in Richmond.

Which has lower taxes, Fairbanks or Richmond?

Fairbanks is taxed under Alaska's rules (no state income tax and no state sales tax); Richmond under Virginia's (a top state income tax rate of 5.75% and a 5.3% state sales tax).

Fairbanks vs Richmond Cost of Living 2026

Fairbanks

Alaska

$1,350/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 $1,350 in Fairbanks, AK versus $1,400 in Richmond, VA. Overall, Fairbanks, AK is roughly 4% cheaper to live in day-to-day than Richmond, VA, driven mainly by rent.

Median household income is $72,077 in Fairbanks, AK and $62,671 in Richmond, VA — about 13% higher in Fairbanks, AK. Alaska has no state income tax and no state sales tax; Virginia has a top state income tax rate of 5.75% and a 5.3% state sales tax.

Fairbanks, AK

Richmond, VA

Rent

Studio

$883

$1,183

+34% in Richmond, VA

1 Bedroom

$1,076

$1,195

+11% in Richmond, VA

2 Bedroom

$1,428

$1,374

+4% in Fairbanks, AK

3 Bedroom

$2,019

$1,447

+28% in Fairbanks, AK

Buying a Home

Median Home Value

$255,700

$328,100

+28% in Richmond, VA

Income

Median Household Income

$72,077

$62,671

+13% in Fairbanks, AK

Metro Median Wage (annual)

$61,810

$51,460

+17% in Fairbanks, AK

People & Lifestyle

Median Age

28.6 yr

34.5 yr

+5.9 yr in Richmond, VA

Homeownership

40.5%

43.5%

+3.0 pp in Richmond, VA

Bachelor's+ (25+)

26.5%

44.1%

+17.6 pp in Richmond, VA

Avg Commute

14.1 min

22.1 min

+8.0 min in Richmond, VA

Crime (per 100k/yr)

Violent Crime

726.1

349

+52% in Fairbanks, AK

Property Crime

3,504.2

3,240.2

+8% 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

27.7°F

58.9°F

+31.2°F in Richmond, VA

Annual Precipitation

10.8 in

43.6 in

+32.8 in in Richmond, VA

Gas

Regular Gasoline

$5.21/gal

$3.94/gal

+24% in Fairbanks, AK

Area: West Coast (PADD 5) vs East Coast (PADD 1).

Utilities

Electricity (¢/kWh)

28.2

17.2

+39% in Fairbanks, AK

Natural Gas ($/MCF)

$17.35

$27.20

+57% in Richmond, VA

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

Groceries

Milk (gal)

$4.82

$4.00

+17% in Fairbanks, AK

Bread (lb)

$2.04

$1.75

+14% in Fairbanks, AK

Eggs (doz)

$2.19

$2.21

+1% in Richmond, VA

Ground Beef (lb)

$7.36

$6.45

+12% in Fairbanks, AK

Chicken (lb)

$2.01

$1.90

+6% in Fairbanks, AK

Bananas (lb)

$0.70

$0.62

+12% in Fairbanks, AK

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

State Taxes

Sales Tax (AK / VA)

None

5.3%

+5.3 pp in VA

Income Tax (top rate)

None

5.75%

+5.8 pp in VA

Fairbanks vs Richmond — FAQ

Is it cheaper to live in Fairbanks or Richmond?: Fairbanks, AK is cheaper. Its monthly baseline of $1,350 (1BR rent + utilities) runs about 4% below Richmond, VA's $1,400, mainly because of rent.
How much more do you need to earn to live in Fairbanks than in Richmond?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $43,000 a year in Fairbanks versus $48,000 in Richmond.
Which has lower taxes, Fairbanks or Richmond?: Fairbanks is taxed under Alaska's rules (no state income tax and no 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).