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

Houston

Texas
88
VS

Ann Arbor

Michigan
121

Houston is 27% cheaper than Ann Arbor.

$1,313/mo ↓ 15%
Median Rent
$1,552/mo ↑ 18%
$62,894/yr ↓ 22%
Median Income
$81,089/yr ↑ 29%
$253,400 ↓ 42%
Home Value
$435,100 ↑ 72%
$1,316/mo ↓ 20%
Owner Costs
$1,638/mo ↑ 24%
2,300,419
Population
121,179

Tax Comparison

0%
Income Tax
4.25%
6.25%
State Sales Tax
6.0%
1.6%
Property Tax
1.38%

Affordability

25.1%
rent-to-income
Affordability
23.0%
rent-to-income

Detailed Comparison

When comparing Houston, TX and Ann Arbor, MI, the overall cost of living indices are 88 and 121 respectively (national median = 100). Rent is $239/month cheaper in Houston, saving renters about $2,868/year.

Median household income is $18,195/year higher in Ann Arbor. Home values also differ significantly — the median in Houston is $253,400 compared to $435,100 in Ann Arbor.

Texas has no state income tax, giving Houston residents a significant tax advantage over Michigan's 4.25% rate.

Frequently Asked Questions

Houston vs Ann Arbor — common questions

Is Houston or Ann Arbor cheaper to live in?
Based on our cost index, Houston is cheaper to live in with an index of 88 compared to 121 (US average = 100).
What is the rent difference between Houston and Ann Arbor?
Median rent in Houston is $1,313/month and in Ann Arbor it's $1,552/month — a difference of $239/month.
Which city has higher income, Houston or Ann Arbor?
Median household income is $62,894 in Houston and $81,089 in Ann Arbor. Median household income is $18,195/year higher in Ann Arbor.
How do taxes compare between Texas and Michigan?
Texas has 0% income tax, 6.25% sales tax, and 1.6% property tax. Michigan has 4.25% income tax, 6.0% sales tax, and 1.38% property tax.
Should I move to Houston or Ann Arbor?
It depends on your priorities. Houston has a cost index of 88 with median rent of $1,313/mo, while Ann Arbor has a cost index of 121 with rent of $1,552/mo. Consider income potential, tax burden, and lifestyle preferences alongside raw cost data.
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