Traverse City, MI

Below Avg · 89

Michigan · Population 15,491 · Updated March 2026

$983
Median Rent / Month
$71,731
Median Income
$367,600
Median Home Value
$1,156
Owner Costs / Month

Affordability

How far your income goes in Traverse City

16.4%
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

$11,796
Annual Rent
$3,049
State Income Tax
$5,073
Property Tax (est.)

Cost of Living Overview

Traverse City 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), Traverse City residents can expect to pay median rent of $983/month while earning a median household income of $71,731/year.

The median home value in Traverse City, MI is $367,600, with typical monthly owner costs around $1,156 including mortgage, insurance, and taxes. The median rent-to-income ratio of 16.4% 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 Traverse City.

Frequently Asked Questions

Common questions about living costs in Traverse City

What is the cost of living in Traverse City, MI?
The cost of living index in Traverse City, MI is 89 (US average = 100). Median monthly rent is $983, median household income is $71,731/year, and the median home value is $367,600.
Is Traverse City, MI affordable?
Yes, Traverse City is more affordable than the national average with a cost index of 89. The rent-to-income ratio is 16.4%—below the 30% threshold considered affordable by HUD.
What is the average rent in Traverse City, MI?
The median gross rent in Traverse City, MI is $983 per month according to the US Census Bureau ACS 2023 data. Annual rent costs approximately $11,796.
What is the median household income in Traverse City?
The median household income in Traverse City, MI is $71,731 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%.