Billings vs Tempe for Families (2026)
Scroll down for childcare estimates, home price-to-income ratios, and FAQ.
Full family cost breakdown
| Metric | Billings Montana | Tempe Arizona |
|---|---|---|
| Studio rent / month | $950Better | $1,250 |
| 2BR rent / month | $1,600Better | $2,100 |
| Median home price | $320KBetter | $430K |
| Median household income | $60K | $68KBetter |
| Est. childcare / month | $1,157Better | $1,339 |
| State income tax | 6.8% | 2.5%Better |
| Sales tax (combined) | 0%Better | 8.6% |
| Monthly utilities | $148Better | $210 |
| Groceries index (US = 100) | 97Better | 100 |
Frequently asked questions
Which city is better for raising a family — Billings or Tempe?
Billings and Tempe are closely matched for families overall. Housing costs, income levels, and taxes are comparable. Your specific priorities — school quality, commute, outdoor space — should drive the decision.
What is the average 2-bedroom rent in Billings vs Tempe?
As of Q1 2026, median 2BR rent is $1,600/month in Billings and $2,100/month in Tempe. Billings is 24% cheaper for a family-sized apartment.
Can a family afford to buy a home in Billings or Tempe?
The price-to-income ratio in Billings is 5.3× ($320K median home, $60K median income). In Tempe it's 6.3× ($430K home, $68K income). A ratio below 3× is generally considered affordable — Billings is more achievable for first-time family homebuyers.
How much does childcare cost in Billings vs Tempe?
Estimated infant/toddler childcare runs approximately $1,157/month in Billings and $1,339/month in Tempe, based on national averages scaled by each city's cost-of-living index. Annual childcare cost difference: ~$2,184/year.
Which city has lower taxes for families?
Billings has a 6.8% state income tax rate vs Tempe's 2.5% rate. For a dual-income family earning $120K combined, that difference is roughly $430/month in take-home pay.
$100K in Billings has the same purchasing power as $116K in Tempe
Childcare estimates based on national avg scaled by COL index · Data: Zillow, BLS, Numbeo, Tax Foundation · Q1 2026