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Ann Arbor, MI

Cost of living in Ann Arbor, Michigan

Washtenaw County, MI

Part of the Ann Arbor Metro Area

Estimated monthly cost
$3,304/mo
for a single person, all categories combined

Population 368,394 · Last updated May 21, 2026

Cost breakdown

Single person, by category, per month.

Rent $1,346 41%
Federal tax $514 16%
Healthcare $480 15%
Groceries $326 10%
Transport $250 8%
Energy $191 6%
State tax $147 4%
Water $50 2%

Rent in Ann Arbor

Fair Market Rents by bedroom count.

Studio
$1,327
per month
1 bedroom
$1,346
per month
2 bedroom
$1,607
per month
3 bedroom
$1,936
per month
4 bedroom
$2,131
per month

Source: HUD FMR FY2025

Income and earnings in Ann Arbor

Annual earnings figures from the Census ACS.

Household income
$87,156
per year
Individual earnings
$41,483
per year
Per capita
$51,746
per year

Source: ACS 2019-2023 5-Year.

Home values in Ann Arbor

Average values reported by homeowners.

Average home value
$353,000
Annual property tax
$5,505

Source: ACS 2019-2023 5-Year

Energy costs in Ann Arbor

Estimated monthly electricity and gas costs.

Electricity
$128
per month · 19.7¢/kWh
Natural gas
$63
per month
Annual total
$2,292
per year

Source: EIA

Healthcare in Ann Arbor

Insurance premiums and coverage rates.

Individual premium
$480
per month
Family premium
$1,350
per month
Uninsured rate
3.3%

Source: ACS + national avg. Marketplace benchmark premiums are second-lowest Silver plan estimates and do not reflect employer plans, subsidies, or out-of-pocket costs. This is not healthcare advice.

Taxes in Ann Arbor

State and local tax rates for Michigan.

State income tax
4.3%
Flat rate
State sales tax
6.0%
Combined sales tax
6.0%
incl. average local

Tax rates change. Consult a qualified tax professional for advice on your specific situation. This is not tax advice.

Transportation in Ann Arbor

Commute patterns and estimated costs.

Average commute
23.4 min
Drive alone
61.9%
Public transit
3.8%
Work from home
20.3%

Source: ACS

Monthly cost estimates for Ann Arbor

What it costs to live in Ann Arbor each month.

Single person
$3,304
per month
  • Rent $1,346
  • Energy $191
  • Water $50
  • Groceries $326
  • Transport $250
  • Healthcare $480
  • Federal tax $514
  • State tax $147
Couple
$5,056
per month
  • Rent $1,607
  • Energy $229
  • Water $60
  • Groceries $540
  • Transport $350
  • Healthcare $864
  • Federal tax $1,097
  • State tax $309
Family
$7,518
per month
  • Rent $1,936
  • Energy $286
  • Water $70
  • Groceries $820
  • Transport $450
  • Healthcare $1,350
  • Childcare $1,200
  • Federal tax $1,097
  • State tax $309

Frequently asked questions about Ann Arbor

Common questions about cost of living, rent and salary.

What is the average rent in Ann Arbor?

In Ann Arbor, Michigan, a one-bedroom apartment averages $1,346 per month, a two-bedroom averages $1,607 per month, a three-bedroom averages $1,936 per month, according to HUD Fair Market Rent data.

What is the average salary in Ann Arbor?

In Ann Arbor, Michigan, the average household income is $87,156 per year and individual earnings for full-time workers average $41,483 per year, according to U.S. Census Bureau data.

What is the cost of living in Ann Arbor?

The estimated cost of living in Ann Arbor, Michigan is approximately $3,304 per month for a single person, $5,056 for a couple, $7,518 for a family. This includes rent, utilities, groceries, transportation, healthcare, and taxes.

What is the sales tax rate in Ann Arbor?

The combined sales tax rate in Ann Arbor, Michigan is 6.00%, which includes the Michigan state rate of 6.00% plus an average local rate of 0.00%.

Is Ann Arbor an affordable place to live?

Based on the data, a single person in Ann Arbor, Michigan would need approximately $3,304 per month to cover rent, utilities, food, transport, healthcare, and taxes. The average household income is $87,156 per year ($7,263 per month). Ann Arbor is relatively affordable compared to the national average.

How much does healthcare cost in Ann Arbor?

The ACA marketplace benchmark premium in Ann Arbor, Michigan is approximately $480 per month for an individual. Approximately 3.3% of residents are uninsured. Actual costs vary based on employer coverage, plan type, and individual circumstances.

What are house prices in Ann Arbor?

The average home value in Ann Arbor, Michigan is $353,000, with average annual property taxes of $5,505, according to U.S. Census Bureau data.

How does Ann Arbor compare to other areas?

You can compare Ann Arbor, Michigan with any other US county using our comparison tool at /compare. Ann Arbor is in the Ann Arbor, MI metro area.

Other counties in Michigan

Browse the full list of counties in Michigan, ranked by cost of living.

See all counties in Michigan

Compare Ann Arbor with another area

Put two counties side by side to see how rent, taxes and everyday costs stack up.

About this data

All figures on this page come from official U.S. government sources, listed below.

  • HUD FMR FY2025
  • ACS 2019-2023 5-Year
  • EIA
  • ACS + national avg
  • ACS
  • USDA + BEA RPP
Methodology All data sources