Median rent is 6% lower in Ann Arbor ($1,552/mo vs $1,655/mo). Buying is cheaper in Ann Arbor, where the median home runs $435,100 versus $512,700. Households earn more in Austin ($91,461 vs $81,089 a year). Taken together, Ann Arbor is the more affordable choice with a cost index of 97.9 against 98.8 — about 1% lower overall prices. After adjusting income for local prices, a typical paycheck stretches further in Austin, TX.
Quick verdict
Ann Arbor is 1% cheaper overall
Cost index: 97.9 in Ann Arbor vs 98.8 in Austin (US average = 100)
City A
Ann Arbor, MI
City B
Austin, TX
How much would you need to earn in Austin, TX to maintain your standard of living from Ann Arbor, MI?
Equivalent salary in Austin, TX
$75,714
You'd need $714 more (1% higher).
Based on BEA Regional Price Parity (cost index) for each city's metro area. A rough estimate of overall purchasing power, not tax or take-home pay.
Metric
Ann Arbor
Michigan
Austin
Texas
👥Population
💰Median Household Income
Annual
🏠Median Gross Rent
Per month
🏡Median Home Value
📊Cost of Living Index
US avg = 100
🔑1BR Fair Market Rent
HUD FMR
🔑2BR Fair Market Rent
HUD FMR
🔑3BR Fair Market Rent
HUD FMR
🌬️Air Quality Index
Lower = cleaner
🏛️Top State Income Tax
Top marginal rate
🧾State Sales Tax
Statewide base rate
🎂Median Age
Years
✓ = better value · Sources: US Census ACS, BEA RPP, HUD FMR, EPA AirNow, Tax Foundation
Median rent is modestly lower in Ann Arbor at $1,552/mo compared to $1,655/mo in Austin (6% gap). Median home values are within 15% of each other: $435,100 in Ann Arbor and $512,700 in Austin.
1BR Fair Market Rent
2BR Fair Market Rent
BLS OEWS 2023 — metro-level data
Texas has no state income tax, while Michigan tops out at 4.25% — giving Austin a clear advantage for high earners. Sales tax is 6.00% in Michigan and 6.25% in Texas; Ann Arbor has the lower rate (local add-ons may apply in both).
Ann Arbor
Income tax: 4.25%
Sales tax: 6.00%
Austin
Income tax: None
Sales tax: 6.25%
Air quality data is available for Austin (avg AQI 47.0) but not yet for Ann Arbor.
Pick Austin if you prioritize higher median household income ($91,461/yr).
Pick Austin if you prioritize no state income tax.
Is Ann Arbor cheaper than Austin?
Ann Arbor is cheaper overall, with a cost of living index of 97.9 versus 98.8 (US average = 100). That means prices run about 1% lower in Ann Arbor.
How much is rent in Ann Arbor vs Austin?
Median rent is $1,552/mo in Ann Arbor, MI and $1,655/mo in Austin, TX. Ann Arbor, MI has the lower rent by about 6%.
Which has higher salaries — Ann Arbor or Austin?
Median household income is $81,089 in Ann Arbor, MI and $91,461 in Austin, TX. Austin, TX has the higher median income. Note that BLS occupational wages in the table above show wages for specific jobs.
Which city has better air quality?
Air quality data is not yet available for one or both cities.
Which has lower taxes — Ann Arbor or Austin?
Texas has no state income tax. Michigan has a top rate of 4.25%.
What salary do I need in Austin to match my Ann Arbor income?
To maintain the same purchasing power, a salary of $100,000 in Ann Arbor, MI is equivalent to roughly $100,952 in Austin, TX (using the BEA Regional Price Parity ratio). Use the salary calculator above for any income amount.
Data last updated: December 1, 2024 · Sources: US Census ACS, BEA RPP, BLS OEWS, HUD FMR, EPA AirNow, Tax Foundation · Methodology