Royal Oak, MI

Average · 96

Michigan · Population 57,880 · Updated March 2026

$1,335
Median Rent / Month
$95,182
Median Income
$305,900
Median Home Value
$1,408
Owner Costs / Month

Affordability

How far your income goes in Royal Oak

16.8%
Rent-to-Income Ratio
Affordable
Rent takes less than 25% of median income — considered affordable by HUD standards.

Tax Burden in Michigan

State-level tax rates that affect your costs

4.25%
Income Tax (Top Rate)
6.0%
Sales Tax
1.38%
Property Tax Rate

Estimated Annual Costs

$16,020
Annual Rent
$4,045
State Income Tax
$4,221
Property Tax (est.)

Cost of Living Overview

Royal Oak has a cost of living close to the national average, offering a balanced mix of expenses and amenities. With a cost index of 96 (where 100 equals the national median), Royal Oak residents can expect to pay median rent of $1,335/month while earning a median household income of $95,182/year.

The median home value in Royal Oak, MI is $305,900, with typical monthly owner costs around $1,408 including mortgage, insurance, and taxes. The median rent-to-income ratio of 16.8% means housing is relatively affordable here — well below the 30% threshold that HUD considers cost-burdened.

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 Royal Oak.

Frequently Asked Questions

Common questions about living costs in Royal Oak

What is the cost of living in Royal Oak, MI?
The cost of living index in Royal Oak, MI is 96 (US average = 100). Median monthly rent is $1,335, median household income is $95,182/year, and the median home value is $305,900.
Is Royal Oak, MI affordable?
Yes, Royal Oak is more affordable than the national average with a cost index of 96. The rent-to-income ratio is 16.8%—below the 30%% threshold considered affordable by HUD.
What is the average rent in Royal Oak, MI?
The median gross rent in Royal Oak, MI is $1,335 per month according to the US Census Bureau ACS 2023 data. Annual rent costs approximately $16,020.
What is the median household income in Royal Oak?
The median household income in Royal Oak, MI is $95,182 per year. This compares to the national median of approximately $80,000.
What are the taxes like in Michigan?
Michigan has a top income tax rate of 4.25%, a sales tax of 6.0%, and an effective property tax rate of 1.38%.