Chapel Hill, NC

Very High · 133

North Carolina · Population 59,889 · Updated March 2026

$1,483
Median Rent / Month
$85,825
Median Income
$576,500
Median Home Value
$1,563
Owner Costs / Month

Affordability

How far your income goes in Chapel Hill

20.7%
Rent-to-Income Ratio
Affordable
Rent takes less than 25% of median income — considered affordable by HUD standards.

Tax Burden in North Carolina

State-level tax rates that affect your costs

4.5%
Income Tax (Top Rate)
4.75%
Sales Tax
0.8%
Property Tax Rate

Estimated Annual Costs

$17,796
Annual Rent
$3,862
State Income Tax
$4,612
Property Tax (est.)

Cost of Living Overview

Chapel Hill has a significantly higher cost of living than most US cities, driven largely by premium housing costs. With a cost index of 133 (where 100 equals the national median), Chapel Hill residents can expect to pay median rent of $1,483/month while earning a median household income of $85,825/year.

The median home value in Chapel Hill, NC is $576,500, with typical monthly owner costs around $1,563 including mortgage, insurance, and taxes. The median rent-to-income ratio of 20.7% means housing is relatively affordable here — well below the 30% threshold that HUD considers cost-burdened.

North Carolina has a moderate income tax rate of 4.5%. Combined with a 4.75% sales tax rate and 0.8% effective property tax rate, the overall tax environment is a factor in the total cost of living in Chapel Hill.

Frequently Asked Questions

Common questions about living costs in Chapel Hill

What is the cost of living in Chapel Hill, NC?
The cost of living index in Chapel Hill, NC is 133 (US average = 100). Median monthly rent is $1,483, median household income is $85,825/year, and the median home value is $576,500.
Is Chapel Hill, NC affordable?
No, Chapel Hill is more expensive than the national average with a cost index of 133. The rent-to-income ratio is 20.7%—below the 30%% threshold considered affordable by HUD.
What is the average rent in Chapel Hill, NC?
The median gross rent in Chapel Hill, NC is $1,483 per month according to the US Census Bureau ACS 2023 data. Annual rent costs approximately $17,796.
What is the median household income in Chapel Hill?
The median household income in Chapel Hill, NC is $85,825 per year. This compares to the national median of approximately $80,000.
What are the taxes like in North Carolina?
North Carolina has a top income tax rate of 4.5%, a sales tax of 4.75%, and an effective property tax rate of 0.8%.