Ann Arbor, MI, US
College town with University of Michigan, Big Ten sports, and intellectual energy.
Above Average vs US avg (100)
Above Average
Household income
Job market health
Ann Arbor vs US Average
Taxes
- State Income Tax: 4.2%
- Sales Tax: 6.0%
Economy & Jobs
- Median Income: $65,000
- Unemployment: 2.8%
- Population: 121,536
Climate
- Sunny Days: 178/year
- Summer High: 83°F
- Winter Low: 17°F
Housing
- Median Home: $420,000
- 1BR Rent: $1550/mo
Cost of Living
Ann Arbor's cost of living index is 108.5 (US average = 100).
| Category | Ann Arbor | National Average | Difference |
|---|---|---|---|
| Overall | 108.5 | 100 | +8.5% |
| Housing | 118.2 | 100 | +18.2% |
Data source: Council for Community and Economic Research (C2ER), 2026
Housing Market
| Metric | Value |
|---|---|
| Median Home Price | $420,000 |
| Median Rent (1BR) | $1550/mo |
| Median Rent (2BR) | $1,938/mo |
| Price per Sq Ft | $280 |
Data source: Zillow Research, May 2026
True Cost of Home Ownership
Utilities
Estimated monthly utility costs for a typical household in Ann Arbor:
| Utility | Estimated Monthly Cost | Notes |
|---|---|---|
| Electricity | $125 | Based on ~900 kWh/month typical US household usage |
| Heating (Gas/Oil) | $345 | Estimated based on local climate. Gas or electric |
| Water | $55 | Includes sewer |
| Internet (100+ Mbps) | $55 | Broadband average |
| Garbage / Trash | Included in taxes | Municipal service (covered by property taxes) |
| Total Utilities | $580 | Monthly estimate (including heating) |
Data sources: U.S. Energy Information Administration (EIA) 2024, EPA/AWWA water rate surveys, BroadbandNow
Best Neighborhoods
Downtown Ann Arbor
The heart of the city with restaurants, shops, and entertainment. Average rent: $1,860/mo.
Ann Arbor Heights
Trendy area with local businesses and a mix of historic and modern housing. Average rent: $1,705/mo.
East Ann Arbor
Up-and-coming neighborhood with new developments and young professionals. Average rent: $1,395/mo.
West Ann Arbor
Family-friendly area with parks and good schools. Average rent: $1,473/mo.
Remote Work Score
Ann Arbor scores 115/100 for remote work readiness:
- Internet Speed: Average 200 Mbps (Good)
- Coworking Spaces: 15+ locations (Good)
- Cost of Living: Good
- Climate: 178 year (Fair)
- Quality of Life: Good
Climate
Ann Arbor has a varied climate with distinct seasons.
| Month | Avg High | Avg Low | Rainfall |
|---|---|---|---|
| January | 37°F | 17°F | 2.5" |
| April | 68°F | 32°F | 2.8" |
| July | 83°F | 58°F | 1.5" |
| October | 63°F | 35°F | 2.2" |
Taxes
- State Income Tax: 4.25%
- Sales Tax: 6%
- Property Tax: ~1.81% of assessed value
Economy & Jobs
Major industries include technology, healthcare, education, and manufacturing. The unemployment rate is 2.8%.
Important Disclaimer: All data on this page is for informational purposes only and does not constitute financial, legal, tax, or real estate advice. URCity and Northshore Press are not financial advisors, tax professionals, or real estate agents. Always consult qualified professionals before making relocation or financial decisions.
Frequently Asked Questions
What is the cost of living in Ann Arbor, MI, US?
The cost of living index in Ann Arbor is 108.5, which is Higher the US national average of 100.
How much does it cost to buy a home in Ann Arbor?
The median home price in Ann Arbor is $420,000. The housing index is 118.2.
What is the average rent for a 1-bedroom apartment?
The average rent for a 1-bedroom apartment in Ann Arbor is approximately $1550/mo.
Does Ann Arbor, MI have income tax?
Ann Arbor is in MI, which has an income tax rate of 4.25%.
What is the climate like in Ann Arbor?
Ann Arbor enjoys approximately 178 sunny days per year. Summer highs reach around <no value>°F,83°F, while winter lows can drop to around <no value>°F.17°F.
Data Sources
- Cost of Living: Council for Community and Economic Research (C2ER), 2026
- Housing Data: Zillow Research, 2026
- Income & Employment: US Census Bureau American Community Survey, 2024
Data last updated: July 6, 2026. Data may not reflect current market conditions. Always verify with local sources before making relocation decisions.