Is it cheaper to live in Fairbanks or Rochester?

Rochester, MN is cheaper. Its monthly baseline of $1,290 (1BR rent + utilities) runs about 4% below Fairbanks, AK's $1,350, mainly because of electricity costs.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $43,000 a year in Fairbanks versus $44,000 in Rochester.

Which has lower taxes, Fairbanks or Rochester?

Fairbanks is taxed under Alaska's rules (no state income tax and no state sales tax); Rochester under Minnesota's (a top state income tax rate of 9.85% and a 6.875% state sales tax).

Fairbanks vs Rochester Cost of Living 2026

Fairbanks

Alaska

$1,350/mo est.

Rochester

Minnesota

$1,290/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 $1,290 in Rochester, MN. Overall, Rochester, MN is roughly 4% cheaper to live in day-to-day than Fairbanks, AK, driven mainly by electricity costs.

Median household income is $72,077 in Fairbanks, AK and $87,767 in Rochester, MN — about 18% higher in Rochester, MN. Alaska has no state income tax and no state sales tax; Minnesota has a top state income tax rate of 9.85% and a 6.875% state sales tax.

Fairbanks, AK

Rochester, MN

Rent

Studio

$883

$1,080

+22% in Rochester, MN

1 Bedroom

$1,076

$1,106

+3% in Rochester, MN

2 Bedroom

$1,428

$1,243

+13% in Fairbanks, AK

3 Bedroom

$2,019

$1,646

+18% in Fairbanks, AK

Buying a Home

Median Home Value

$255,700

$287,500

+12% in Rochester, MN

Income

Median Household Income

$72,077

$87,767

+22% in Rochester, MN

Metro Median Wage (annual)

$61,810

$60,620

+2% in Fairbanks, AK

People & Lifestyle

Median Age

28.6 yr

36.4 yr

+7.8 yr in Rochester, MN

Homeownership

40.5%

65.4%

+24.9 pp in Rochester, MN

Bachelor's+ (25+)

26.5%

50.1%

+23.6 pp in Rochester, MN

Avg Commute

14.1 min

17.2 min

+3.1 min in Rochester, MN

Crime (per 100k/yr)

Violent Crime

726.1

158.9

+78% in Fairbanks, AK

Property Crime

3,504.2

1,379

+61% 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

45.4°F

+17.7°F in Rochester, MN

Annual Precipitation

10.8 in

33.0 in

+22.2 in in Rochester, MN

Gas

Regular Gasoline

$5.21/gal

$3.96/gal

+24% in Fairbanks, AK

Area: West Coast (PADD 5) vs Minnesota.

Utilities

Electricity (¢/kWh)

28.2

17.5

+38% in Fairbanks, AK

Natural Gas ($/MCF)

$17.35

$14.79

+15% in Fairbanks, AK

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

Groceries

Milk (gal)

$4.82

$4.31

+10% in Fairbanks, AK

Bread (lb)

$2.04

$1.66

+19% in Fairbanks, AK

Eggs (doz)

$2.19

$3.63

+66% in Rochester, MN

Ground Beef (lb)

$7.36

$6.77

+8% in Fairbanks, AK

Chicken (lb)

$2.01

$2.10

+4% in Rochester, MN

Bananas (lb)

$0.70

$0.62

+12% in Fairbanks, AK

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

State Taxes

Sales Tax (AK / MN)

None

6.875%

+6.9 pp in MN

Income Tax (top rate)

None

9.85%

+9.8 pp in MN

Fairbanks vs Rochester — FAQ

Is it cheaper to live in Fairbanks or Rochester?: Rochester, MN is cheaper. Its monthly baseline of $1,290 (1BR rent + utilities) runs about 4% below Fairbanks, AK's $1,350, mainly because of electricity costs.
How much more do you need to earn to live in Fairbanks than in Rochester?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $43,000 a year in Fairbanks versus $44,000 in Rochester.
Which has lower taxes, Fairbanks or Rochester?: Fairbanks is taxed under Alaska's rules (no state income tax and no 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).