Needham, MA

Very High · 253

Massachusetts · Population 32,059 · Updated March 2026

$2,412
Median Rent / Month
$212,241
Median Income
$1,146,000
Median Home Value
$3,325
Owner Costs / Month

Affordability

How far your income goes in Needham

13.6%
Rent-to-Income Ratio
Affordable
Rent takes less than 25% of median income — considered affordable by HUD standards.

Tax Burden in Massachusetts

State-level tax rates that affect your costs

9.0%
Income Tax (Top Rate)
6.25%
Sales Tax
1.15%
Property Tax Rate

Estimated Annual Costs

$28,944
Annual Rent
$19,102
State Income Tax
$13,179
Property Tax (est.)

Cost of Living Overview

Needham has a significantly higher cost of living than most US cities, driven largely by premium housing costs. With a cost index of 253 (where 100 equals the national median), Needham residents can expect to pay median rent of $2,412/month while earning a median household income of $212,241/year.

The median home value in Needham, MA is $1,146,000, with typical monthly owner costs around $3,325 including mortgage, insurance, and taxes. The median rent-to-income ratio of 13.6% means housing is relatively affordable here — well below the 30% threshold that HUD considers cost-burdened.

Massachusetts's top income tax rate of 9.0% is among the highest in the nation, adding to the overall cost burden. Combined with a 6.25% sales tax rate and 1.15% effective property tax rate, the overall tax environment is a factor in the total cost of living in Needham.

Frequently Asked Questions

Common questions about living costs in Needham

What is the cost of living in Needham, MA?
The cost of living index in Needham, MA is 253 (US average = 100). Median monthly rent is $2,412, median household income is $212,241/year, and the median home value is $1,146,000.
Is Needham, MA affordable?
No, Needham is more expensive than the national average with a cost index of 253. The rent-to-income ratio is 13.6%—below the 30%% threshold considered affordable by HUD.
What is the average rent in Needham, MA?
The median gross rent in Needham, MA is $2,412 per month according to the US Census Bureau ACS 2023 data. Annual rent costs approximately $28,944.
What is the median household income in Needham?
The median household income in Needham, MA is $212,241 per year. This compares to the national median of approximately $80,000.
What are the taxes like in Massachusetts?
Massachusetts has a top income tax rate of 9.0%, a sales tax of 6.25%, and an effective property tax rate of 1.15%.