Cost of Living in Ann Arbor, Michigan (2026)
COL Index
105
100 = US avg
1BR Rent
$1,750
per month
Median HHI
$72K
per year
State Tax
4.1%
income tax
Full cost breakdown
| Category | Ann Arbor |
|---|---|
| 🏠 HousingQ1 2026 | |
| Studio rent/mo | $1,400 |
| 1BR rent/mo | $1,750 |
| 2BR rent/mo | $2,300 |
| Median home price | $400K |
| 🛒 Food & GroceriesQ1 2026 | |
| Groceries index (100 = US avg) | 101 |
| Budget meal (1 person) | $14 |
| Mid-range dinner (2 people) | $58 |
| 🚌 TransportationQ1 2026 | |
| Monthly transit pass/mo | $65 |
| Gas price/gal | $3.20 |
| Car insurance/mo | $145 |
| ⚡ UtilitiesQ1 2026 | |
| Utilities bundle (elec + gas + water)/mo | $162 |
| Internet/mo | $63 |
| 💰 Income & TaxesQ1 2026 | |
| Median household income/yr | $72K |
| State income tax rate | 4.1% |
| Sales tax (combined) | 6.0% |
| 📊 OverviewQ1 2026 | |
| Overall COL index (100 = US avg) | 105 |
| Walk score / 100 | 55 |
Is Ann Arbor affordable on your salary?
How rent burden (1BR) changes across income levels. Under 30% is comfortable; above 40% is tight.
$40K
~$2,592/mo take-home
68% rent burden · Difficult
$50K
~$2,990/mo take-home
59% rent burden · Difficult
$60K
~$3,588/mo take-home
49% rent burden · Difficult
$75K
~$4,484/mo take-home
39% rent burden · Tight
$80K
~$4,783/mo take-home
37% rent burden · Tight
$100K
~$5,979/mo take-home
29% rent burden · Manageable
$120K
~$6,745/mo take-home
26% rent burden · Comfortable
$150K
~$8,431/mo take-home
21% rent burden · Very comfortable
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Data: Zillow Observed Rent Index, BLS, Numbeo, Tax Foundation, US Census ACS · Q1 2026 · For general guidance only