Median rent is 13% lower in Chicago ($1,440/mo vs $1,649/mo). Buying is cheaper in Chicago, where the median home runs $334,100 versus $453,400. Households earn more in Ann Arbor ($82,212 vs $77,902 a year). Taken together, Ann Arbor is the more affordable choice with a cost index of 98.2 against 102.5 — about 4% lower overall prices. After adjusting income for local prices, a typical paycheck stretches further in Ann Arbor, MI.
Cost of living verdict
Ann Arbor is 4% cheaper overall
Cost of Living Index: 98.2 in Ann Arbor vs 102.5 in Chicago (US national average = 100)
City A
Ann Arbor, MI
City B
Chicago, IL
How much would you need to earn in Chicago, IL to maintain your standard of living from Ann Arbor, MI?
Equivalent salary in Chicago, IL
$78,313
You'd need $3,313 more (4% higher).
Based on BEA Regional Price Parity (cost index) for each metro area. This estimates overall purchasing power; it does not account for taxes or take-home pay differences.
Metric
Ann Arbor
Michigan
Chicago
Illinois
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: Census ACS, BEA, HUD Fair Market Rents, EPA AirNow, Tax Foundation
Median rent is modestly lower in Chicago at $1,440/mo compared to $1,649/mo in Ann Arbor (13% gap). Home buyers face a steeper market in Ann Arbor: the median home is $453,400 versus $334,100 in Chicago — 26% more expensive.
Metric
Ann Arbor
Chicago
Software Developer
Registered Nurse
Elementary Teacher
Electrician
Accountant
Higher wage highlighted · BLS OEWS 2023 (metro-level data)
State tax data is not yet available for these cities.
Ann Arbor
Income tax: N/A
Sales tax: N/A
Chicago
Income tax: N/A
Sales tax: N/A
Air quality data is available for Chicago (avg AQI 31.0) but not yet for Ann Arbor.
Pick Ann Arbor if you prioritize lower overall cost of living (index 98.2 vs 102.5).
Pick Chicago if you prioritize cheaper rent ($1,440/mo median).
Ann Arbor is cheaper overall, with a cost of living index of 98.2 versus 102.5 (US average = 100). That means prices run about 4% lower in Ann Arbor.
Median rent is $1,649/mo in Ann Arbor, MI and $1,440/mo in Chicago, IL. Chicago, IL has the lower rent by about 13%.
Median household income is $82,212 in Ann Arbor, MI and $77,902 in Chicago, IL. Ann Arbor, MI has the higher median income. Note that BLS occupational wages in the table above show wages for specific jobs.
Air quality data is not yet available for one or both cities.
State tax data is not yet available for one or both cities.
To maintain the same purchasing power, a salary of $100,000 in Ann Arbor, MI is equivalent to roughly $104,418 in Chicago, IL (using the BEA Regional Price Parity ratio). Use the salary calculator above for any income amount.
Data last updated: June 1, 2026 · Sources: US Census ACS, BEA RPP, BLS OEWS, HUD FMR, EPA AirNow, Tax Foundation · Methodology
