Is it cheaper to live in Fargo or Salem?

Fargo, ND is cheaper. Its monthly baseline of $940 (1BR rent + utilities) runs about 20% below Salem, OR's $1,170, mainly because of rent.

How much more do you need to earn to live in Fargo than in Salem?

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $32,000 a year in Fargo versus $40,000 in Salem.

Which has lower taxes, Fargo or Salem?

Fargo is taxed under North Dakota's rules (a top state income tax rate of 2.50% and a 5% state sales tax); Salem under Oregon's (a top state income tax rate of 9.90% and no state sales tax).

Fargo vs Salem Cost of Living 2026

Fargo

North Dakota

$940/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 $940 in Fargo, ND versus $1,170 in Salem, OR. Overall, Fargo, ND is roughly 20% cheaper to live in day-to-day than Salem, OR, driven mainly by rent.

Median household income is $66,029 in Fargo, ND and $71,900 in Salem, OR — about 8% higher in Salem, OR. North Dakota has a top state income tax rate of 2.50% and a 5% state sales tax; Oregon has a top state income tax rate of 9.90% and no state sales tax.

Fargo, ND

Salem, OR

Rent

Studio

$671

$1,075

+60% in Salem, OR

1 Bedroom

$804

$989

+23% in Salem, OR

2 Bedroom

$956

$1,337

+40% in Salem, OR

3 Bedroom

$1,368

$1,778

+30% in Salem, OR

Buying a Home

Median Home Value

$269,800

$382,400

+42% in Salem, OR

Income

Median Household Income

$66,029

$71,900

+9% in Salem, OR

Metro Median Wage (annual)

$51,050

$55,310

+8% in Salem, OR

People & Lifestyle

Median Age

32.2 yr

35.7 yr

+3.5 yr in Salem, OR

Homeownership

44.1%

55.7%

+11.6 pp in Salem, OR

Bachelor's+ (25+)

43.2%

31.4%

+11.8 pp in Fargo, ND

Avg Commute

15.8 min

22.4 min

+6.6 min in Salem, OR

Crime (per 100k/yr)

Violent Crime

504.9

540.6

+7% in Salem, OR

Property Crime

3,726.4

2,878.6

+23% in Fargo, ND

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

Climate

Avg Annual Temperature

42.4°F

53.0°F

+10.6°F in Salem, OR

Annual Precipitation

22.6 in

39.7 in

+17.1 in in Salem, OR

Gas

Regular Gasoline

$3.94/gal

$5.09/gal

+29% in Salem, OR

Area: Midwest (PADD 2) vs West Coast (PADD 5).

Utilities

Electricity (¢/kWh)

13.6

16.3

+20% in Salem, OR

Natural Gas ($/MCF)

$11.39

$20.59

+81% in Salem, OR

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

Groceries

Milk (gal)

$4.31

$4.82

+12% in Salem, OR

Bread (lb)

$1.66

$2.04

+23% in Salem, OR

Eggs (doz)

$3.63

$2.19

+40% in Fargo, ND

Ground Beef (lb)

$6.77

$7.36

+9% in Salem, OR

Chicken (lb)

$2.10

$2.01

+4% in Fargo, ND

Bananas (lb)

$0.62

$0.70

+14% in Salem, OR

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

State Taxes

Sales Tax (ND / OR)

None

+5.0 pp in ND

Income Tax (top rate)

2.50%

9.90%

+7.4 pp in OR

Fargo vs Salem — FAQ

Is it cheaper to live in Fargo or Salem?: Fargo, ND is cheaper. Its monthly baseline of $940 (1BR rent + utilities) runs about 20% below Salem, OR's $1,170, mainly because of rent.
How much more do you need to earn to live in Fargo than in Salem?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $32,000 a year in Fargo versus $40,000 in Salem.
Which has lower taxes, Fargo or Salem?: Fargo is taxed under North Dakota's rules (a top state income tax rate of 2.50% and a 5% 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).