Median rent is 20% lower in Dearborn ($1,327/mo vs $1,649/mo). Buying is cheaper in Dearborn, where the median home runs $218,800 versus $453,400. Households earn more in Ann Arbor ($82,212 vs $65,324 a year). Taken together, Ann Arbor is the more affordable choice with a cost index of 98.2 against 98.2 — about 0% lower overall prices. After adjusting income for local prices, a typical paycheck stretches further in Ann Arbor, MI.
City A
Ann Arbor, MI
City B
Dearborn, MI
How much would you need to earn in Dearborn, MI to maintain your standard of living from Ann Arbor, MI?
Equivalent salary in Dearborn, MI
$75,028
You'd need $28 more (0% 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
Dearborn
Michigan
👥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 Dearborn at $1,327/mo compared to $1,649/mo in Ann Arbor (20% gap). Home buyers face a steeper market in Ann Arbor: the median home is $453,400 versus $218,800 in Dearborn — 52% more expensive.
1BR Fair Market Rent
2BR Fair Market Rent
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
Dearborn
Income tax: N/A
Sales tax: N/A
Air quality data is not yet available for these cities.
Pick Ann Arbor if you prioritize higher median household income ($82,212/yr).
Pick Dearborn if you prioritize cheaper rent ($1,327/mo median).
Is Ann Arbor cheaper than Dearborn?
Ann Arbor is cheaper overall, with a cost of living index of 98.2 versus 98.2 (US average = 100). That means prices run about 0% lower in Ann Arbor.
How much is rent in Ann Arbor vs Dearborn?
Median rent is $1,649/mo in Ann Arbor, MI and $1,327/mo in Dearborn, MI. Dearborn, MI has the lower rent by about 20%.
Which has higher salaries — Ann Arbor or Dearborn?
Median household income is $82,212 in Ann Arbor, MI and $65,324 in Dearborn, MI. Ann Arbor, MI 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 Dearborn?
State tax data is not yet available for one or both cities.
What salary do I need in Dearborn 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 $100,038 in Dearborn, MI (using the BEA Regional Price Parity ratio). Use the salary calculator above for any income amount.
Data last updated: December 1, 2026 · Sources: US Census ACS, BEA RPP, BLS OEWS, HUD FMR, EPA AirNow, Tax Foundation · Methodology
