Michigan · Population 32,445 · Updated March 2026
How far your income goes in Bay
State-level tax rates that affect your costs
Bay is significantly cheaper than the national average, making it an attractive option for budget-conscious individuals and families. With a cost index of 44 (where 100 equals the national median), Bay residents can expect to pay median rent of $739/month while earning a median household income of $47,904/year.
The median home value in Bay, MI is $89,900, with typical monthly owner costs around $748 including mortgage, insurance, and taxes. The median rent-to-income ratio of 18.5% means housing is relatively affordable here — well below the 30% threshold that HUD considers cost-burdened.
Michigan has a moderate income tax rate of 4.25%. Combined with a 6.0% sales tax rate and 1.38% effective property tax rate, the overall tax environment is a factor in the total cost of living in Bay.
Common questions about living costs in Bay