Morgan Hill, CA

Very High · 240

California · Population 45,152 · Updated March 2026

$2,275
Median Rent / Month
$159,758
Median Income
$1,127,600
Median Home Value
$2,924
Owner Costs / Month

Affordability

How far your income goes in Morgan Hill

17.1%
Rent-to-Income Ratio
Affordable
Rent takes less than 25% of median income — considered affordable by HUD standards.

Tax Burden in California

State-level tax rates that affect your costs

13.3%
Income Tax (Top Rate)
7.25%
Sales Tax
0.71%
Property Tax Rate

Estimated Annual Costs

$27,300
Annual Rent
$21,248
State Income Tax
$8,006
Property Tax (est.)

Cost of Living Overview

Morgan Hill has a significantly higher cost of living than most US cities, driven largely by premium housing costs. With a cost index of 240 (where 100 equals the national median), Morgan Hill residents can expect to pay median rent of $2,275/month while earning a median household income of $159,758/year.

The median home value in Morgan Hill, CA is $1,127,600, with typical monthly owner costs around $2,924 including mortgage, insurance, and taxes. The median rent-to-income ratio of 17.1% means housing is relatively affordable here — well below the 30% threshold that HUD considers cost-burdened.

California's top income tax rate of 13.3% is among the highest in the nation, adding to the overall cost burden. Combined with a 7.25% sales tax rate and 0.71% effective property tax rate, the overall tax environment is a factor in the total cost of living in Morgan Hill.

Frequently Asked Questions

Common questions about living costs in Morgan Hill

What is the cost of living in Morgan Hill, CA?
The cost of living index in Morgan Hill, CA is 240 (US average = 100). Median monthly rent is $2,275, median household income is $159,758/year, and the median home value is $1,127,600.
Is Morgan Hill, CA affordable?
No, Morgan Hill is more expensive than the national average with a cost index of 240. The rent-to-income ratio is 17.1%—below the 30%% threshold considered affordable by HUD.
What is the average rent in Morgan Hill, CA?
The median gross rent in Morgan Hill, CA is $2,275 per month according to the US Census Bureau ACS 2023 data. Annual rent costs approximately $27,300.
What is the median household income in Morgan Hill?
The median household income in Morgan Hill, CA is $159,758 per year. This compares to the national median of approximately $80,000.
What are the taxes like in California?
California has a top income tax rate of 13.3%, a sales tax of 7.25%, and an effective property tax rate of 0.71%.