Cost of Living: Ann Arbor, MI vs Dearborn, MI (2026)

Ann Arbor

Michigan
121
VS

Dearborn

Michigan
79

Ann Arbor is 53% more expensive than Dearborn.

$1,552/mo ↑ 23%
Median Rent
$1,264/mo ↓ 19%
$81,089/yr ↑ 24%
Median Income
$65,192/yr ↓ 20%
$435,100 ↑ 111%
Home Value
$205,900 ↓ 53%
$1,638/mo ↑ 40%
Owner Costs
$1,174/mo ↓ 28%
121,179
Population
107,846

Tax Comparison

4.25%
Income Tax
4.25%
6.0%
State Sales Tax
6.0%
1.38%
Property Tax
1.38%

Affordability

23.0%
rent-to-income
Affordability
23.3%
rent-to-income

Detailed Comparison

When comparing Ann Arbor, MI and Dearborn, MI, the overall cost of living indices are 121 and 79 respectively (national median = 100). Rent is $288/month cheaper in Dearborn, saving renters about $3,456/year.

Median household income is $15,897/year higher in Ann Arbor. Home values also differ significantly — the median in Ann Arbor is $435,100 compared to $205,900 in Dearborn.

Both cities share the same state tax structure since they are in Michigan.

Frequently Asked Questions

Ann Arbor vs Dearborn — common questions

Is Ann Arbor or Dearborn cheaper to live in?
Based on our cost index, Dearborn is cheaper to live in with an index of 79 compared to 121 (US average = 100).
What is the rent difference between Ann Arbor and Dearborn?
Median rent in Ann Arbor is $1,552/month and in Dearborn it's $1,264/month — a difference of $288/month.
Which city has higher income, Ann Arbor or Dearborn?
Median household income is $81,089 in Ann Arbor and $65,192 in Dearborn. Median household income is $15,897/year higher in Ann Arbor.
How do taxes compare between Michigan and Michigan?
Both cities are in Michigan and share the same state tax rates: 4.25% income tax, 6.0% sales tax, and 1.38% property tax.
Should I move to Ann Arbor or Dearborn?
It depends on your priorities. Ann Arbor has a cost index of 121 with median rent of $1,552/mo, while Dearborn has a cost index of 79 with rent of $1,264/mo. Consider income potential, tax burden, and lifestyle preferences alongside raw cost data.
View Ann Arbor details → View Dearborn details →

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