Michigan · Population 636,644 · Updated March 2026
How far your income goes in Detroit
State-level tax rates that affect your costs
Detroit is significantly cheaper than the national average, making it an attractive option for budget-conscious individuals and families. With a cost index of 53 (where 100 equals the national median), Detroit residents can expect to pay median rent of $1,034/month while earning a median household income of $39,575/year.
The median home value in Detroit, MI is $76,800, with typical monthly owner costs around $868 including mortgage, insurance, and taxes. At 31.4% rent-to-income ratio, residents of Detroit are spending more than the recommended 30% of income on housing, indicating moderate cost burden.
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 Detroit.
Common questions about living costs in Detroit
Similar-sized cities to compare
Compare the cost of living in Detroit, MI with 299 other major U.S. cities