Median rent is 29% lower in Newark ($1,392/mo vs $1,954/mo). Buying is cheaper in Newark, where the median home runs $373,700 versus $737,100. Households earn more in Washington ($109,870 vs $52,060 a year). Taken together, Washington is the more affordable choice with a cost index of 109.5 against 112.6 — about 3% lower overall prices. After adjusting income for local prices, a typical paycheck stretches further in Washington, DC.
Cost of living verdict
Washington is 3% cheaper overall
Cost of Living Index: 109.5 in Washington vs 112.6 in Newark (US national average = 100)
City A
Newark, NJ
City B
Washington, DC
How much would you need to earn in Washington, DC to maintain your standard of living from Newark, NJ?
Equivalent salary in Washington, DC
$72,935
You could earn $2,065 less (3% lower) and break even.
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
Newark
New Jersey
Washington
District of Columbia
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
Renters will find significantly cheaper housing in Newark — median rent of $1,392/mo versus $1,954/mo in Washington, a 29% difference. Home buyers face a steeper market in Washington: the median home is $737,100 versus $373,700 in Newark — 49% 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.
Newark
Income tax: N/A
Sales tax: N/A
Washington
Income tax: N/A
Sales tax: N/A
Washington has cleaner air on average: 24.0 AQI (Good) compared to 46.0 AQI (Good) in the other city. Lower AQI means cleaner, healthier air.
Pick Washington if you prioritize lower overall cost of living (index 109.5 vs 112.6).
Pick Washington if you prioritize higher median household income ($109,870/yr).
Pick Newark if you prioritize cheaper rent ($1,392/mo median).
Pick Washington if you prioritize cleaner air quality (avg AQI 24.0).
Is Newark cheaper than Washington?
Washington is cheaper overall, with a cost of living index of 109.5 versus 112.6 (US average = 100). That means prices run about 3% lower in Washington.
How much is rent in Newark vs Washington?
Median rent is $1,392/mo in Newark, NJ and $1,954/mo in Washington, DC. Newark, NJ has the lower rent by about 29%.
Which has higher salaries — Newark or Washington?
Median household income is $52,060 in Newark, NJ and $109,870 in Washington, DC. Washington, DC 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?
Washington, DC has better air quality on average: 24.0 AQI versus 46.0 AQI. Both are EPA AirNow annual averages; lower is better.
Which has lower taxes — Newark or Washington?
State tax data is not yet available for one or both cities.
What salary do I need in Washington to match my Newark income?
To maintain the same purchasing power, a salary of $100,000 in Newark, NJ is equivalent to roughly $97,246 in Washington, DC (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
