Median rent is 8% lower in Dearborn ($1,264/mo vs $1,380/mo). Buying is cheaper in Dearborn, where the median home runs $205,900 versus $315,200. Households earn more in Chicago ($75,134 vs $65,192 a year). Taken together, Dearborn is the more affordable choice with a cost index of 96.3 against 105.7 — about 9% lower overall prices. After adjusting income for local prices, a typical paycheck stretches further in Chicago, IL.
Quick verdict
Dearborn is 9% cheaper overall
Cost index: 96.3 in Dearborn vs 105.7 in Chicago (US average = 100)
City A
Chicago, IL
City B
Dearborn, MI
How much would you need to earn in Dearborn, MI to maintain your standard of living from Chicago, IL?
Equivalent salary in Dearborn, MI
$68,302
You could earn $6,698 less (9% lower) and break even.
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
Chicago
Illinois
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 $1,264/mo compared to $1,380/mo in Chicago (8% gap). Home buyers face a steeper market in Chicago: the median home is $315,200 versus $205,900 in Dearborn — 35% more expensive.
1BR Fair Market Rent
2BR Fair Market Rent
BLS OEWS 2023 — metro-level data
Illinois's top income tax rate is 4.95% versus 4.25% in Michigan, so Dearborn is more tax-friendly for high earners. Sales tax is 6.25% in Illinois and 6.00% in Michigan; Dearborn has the lower rate (local add-ons may apply in both).
Chicago
Income tax: 4.95%
Sales tax: 6.25%
Dearborn
Income tax: 4.25%
Sales tax: 6.00%
Air quality data is available for Chicago (avg AQI 21.0) but not yet for Dearborn.
Pick Dearborn if you prioritize lower overall cost of living (index 96.3 vs 105.7).
Pick Chicago if you prioritize higher median household income ($75,134/yr).
Pick Dearborn if you prioritize lower state income tax (4.25%).
Is Chicago cheaper than Dearborn?
Dearborn is cheaper overall, with a cost of living index of 96.3 versus 105.7 (US average = 100). That means prices run about 9% lower in Dearborn.
How much is rent in Chicago vs Dearborn?
Median rent is $1,380/mo in Chicago, IL and $1,264/mo in Dearborn, MI. Dearborn, MI has the lower rent by about 8%.
Which has higher salaries — Chicago or Dearborn?
Median household income is $75,134 in Chicago, IL and $65,192 in Dearborn, MI. Chicago, IL 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 — Chicago or Dearborn?
Illinois's top income tax rate is 4.95% and Michigan's is 4.25%. Dearborn, MI has the lower rate.
What salary do I need in Dearborn to match my Chicago income?
To maintain the same purchasing power, a salary of $100,000 in Chicago, IL is equivalent to roughly $91,070 in Dearborn, MI (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