Palos Hills, IL

Below Avg · 89

Illinois · Population 18,139 · Updated March 2026

$1,267
Median Rent / Month
$83,969
Median Income
$259,200
Median Home Value
$1,381
Owner Costs / Month

Affordability

How far your income goes in Palos Hills

18.1%
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

$15,204
Annual Rent
$4,156
State Income Tax
$5,365
Property Tax (est.)

Cost of Living Overview

Palos Hills offers a below-average cost of living, giving residents more purchasing power compared to many US cities. With a cost index of 89 (where 100 equals the national median), Palos Hills residents can expect to pay median rent of $1,267/month while earning a median household income of $83,969/year.

The median home value in Palos Hills, IL is $259,200, with typical monthly owner costs around $1,381 including mortgage, insurance, and taxes. The median rent-to-income ratio of 18.1% 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 Hills.

Frequently Asked Questions

Common questions about living costs in Palos Hills

What is the cost of living in Palos Hills, IL?
The cost of living index in Palos Hills, IL is 89 (US average = 100). Median monthly rent is $1,267, median household income is $83,969/year, and the median home value is $259,200.
Is Palos Hills, IL affordable?
Yes, Palos Hills is more affordable than the national average with a cost index of 89. The rent-to-income ratio is 18.1%—below the 30%% threshold considered affordable by HUD.
What is the average rent in Palos Hills, IL?
The median gross rent in Palos Hills, IL is $1,267 per month according to the US Census Bureau ACS 2023 data. Annual rent costs approximately $15,204.
What is the median household income in Palos Hills?
The median household income in Palos Hills, IL is $83,969 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%.