Palos Heights, IL

Above Avg · 129

Illinois · Population 11,817 · Updated March 2026

$2,138
Median Rent / Month
$107,974
Median Income
$350,000
Median Home Value
$1,697
Owner Costs / Month

Affordability

How far your income goes in Palos Heights

23.8%
Rent-to-Income Ratio
Affordable
Rent takes less than 25% of median income — considered affordable by HUD standards.

Tax Burden in Illinois

State-level tax rates that affect your costs

4.95%
Income Tax (Top Rate)
6.25%
Sales Tax
2.07%
Property Tax Rate

Estimated Annual Costs

$25,656
Annual Rent
$5,345
State Income Tax
$7,245
Property Tax (est.)

Cost of Living Overview

Palos Heights has a significantly higher cost of living than most US cities, driven largely by premium housing costs. With a cost index of 129 (where 100 equals the national median), Palos Heights residents can expect to pay median rent of $2,138/month while earning a median household income of $107,974/year.

The median home value in Palos Heights, IL is $350,000, with typical monthly owner costs around $1,697 including mortgage, insurance, and taxes. The median rent-to-income ratio of 23.8% means housing is relatively affordable here — well below the 30% threshold that HUD considers cost-burdened.

Illinois has a moderate income tax rate of 4.95%. Combined with a 6.25% sales tax rate and 2.07% effective property tax rate, the overall tax environment is a factor in the total cost of living in Palos Heights.

Frequently Asked Questions

Common questions about living costs in Palos Heights

What is the cost of living in Palos Heights, IL?
The cost of living index in Palos Heights, IL is 129 (US average = 100). Median monthly rent is $2,138, median household income is $107,974/year, and the median home value is $350,000.
Is Palos Heights, IL affordable?
No, Palos Heights is more expensive than the national average with a cost index of 129. The rent-to-income ratio is 23.8%—below the 30%% threshold considered affordable by HUD.
What is the average rent in Palos Heights, IL?
The median gross rent in Palos Heights, IL is $2,138 per month according to the US Census Bureau ACS 2023 data. Annual rent costs approximately $25,656.
What is the median household income in Palos Heights?
The median household income in Palos Heights, IL is $107,974 per year. This compares to the national median of approximately $80,000.
What are the taxes like in Illinois?
Illinois has a top income tax rate of 4.95%, a sales tax of 6.25%, and an effective property tax rate of 2.07%.