Is it cheaper to live in Fairbanks or Salem?

Salem, OR is cheaper. Its monthly baseline of $1,170 (1BR rent + utilities) runs about 13% 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 Salem?

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $43,000 a year in Fairbanks versus $40,000 in Salem.

Which has lower taxes, Fairbanks or Salem?

Fairbanks is taxed under Alaska's rules (no state income tax and no state sales tax); Salem under Oregon's (a top state income tax rate of 9.90% and no state sales tax).

Fairbanks vs Salem Cost of Living 2026

Fairbanks

Alaska

$1,350/mo est.

Salem

Oregon

$1,170/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 $1,170 in Salem, OR. Overall, Salem, OR is roughly 13% 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 $71,900 in Salem, OR. Alaska has no state income tax and no state sales tax; Oregon has a top state income tax rate of 9.90% and no state sales tax.

Fairbanks, AK

Salem, OR

Rent

Studio

$883

$1,075

+22% in Salem, OR

1 Bedroom

$1,076

$989

+8% in Fairbanks, AK

2 Bedroom

$1,428

$1,337

+6% in Fairbanks, AK

3 Bedroom

$2,019

$1,778

+12% in Fairbanks, AK

Buying a Home

Median Home Value

$255,700

$382,400

+50% in Salem, OR

Income

Median Household Income

$72,077

$71,900

+0% in Fairbanks, AK

Metro Median Wage (annual)

$61,810

$55,310

+11% in Fairbanks, AK

People & Lifestyle

Median Age

28.6 yr

35.7 yr

+7.1 yr in Salem, OR

Homeownership

40.5%

55.7%

+15.2 pp in Salem, OR

Bachelor's+ (25+)

26.5%

31.4%

+4.9 pp in Salem, OR

Avg Commute

14.1 min

22.4 min

+8.3 min in Salem, OR

Crime (per 100k/yr)

Violent Crime

726.1

540.6

+26% in Fairbanks, AK

Property Crime

3,504.2

2,878.6

+18% 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

53.0°F

+25.3°F in Salem, OR

Annual Precipitation

10.8 in

39.7 in

+28.9 in in Salem, OR

Gas

Regular Gasoline

$5.21/gal

about equal

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

Utilities

Electricity (¢/kWh)

28.2

16.3

+42% in Fairbanks, AK

Natural Gas ($/MCF)

$17.35

$21.60

+24% in Salem, OR

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 (AK / OR)

None

about equal

Income Tax (top rate)

None

9.90%

+9.9 pp in OR

Fairbanks vs Salem — FAQ

Is it cheaper to live in Fairbanks or Salem?: Salem, OR is cheaper. Its monthly baseline of $1,170 (1BR rent + utilities) runs about 13% 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 Salem?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $43,000 a year in Fairbanks versus $40,000 in Salem.
Which has lower taxes, Fairbanks or Salem?: Fairbanks is taxed under Alaska's rules (no state income tax and no state sales tax); Salem under Oregon's (a top state income tax rate of 9.90% 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).