Anchorage vs Missoula

Category-by-Category Breakdown

Index values shown. National average = 100. Lower is cheaper.

💰 Salary Equivalence

To maintain the same standard of living:

See exact take-home pay: Alaska salaries · Montana salaries

Living in Anchorage vs Missoula

Housing is typically the biggest factor in any cost-of-living comparison. Anchorage has a housing index of 142 while Missoula sits at 141 (national average = 100). The median home in Anchorage costs $340,000 compared to $460,000 in Missoula, a difference of $120,000. Monthly rent follows a similar pattern: $1,400 in Anchorage versus $1,400 in Missoula.

Groceries and everyday expenses show a notable difference: Anchorage scores 120 while Missoula scores 103.

Healthcare costs in Anchorage (128) are higher than Missoula (102).

Median household income in Anchorage is $72,515 compared to $49,234 in Missoula. When adjusted for cost of living, income goes further in Missoula.

Relocating: Anchorage vs Missoula

If you are considering a move between Anchorage (index: 127) and Missoula (index: 115), the 9% cost difference has real implications for your budget. Missoula is the more affordable option, but the right choice depends on your income, career opportunities, and lifestyle priorities.

Housing budget reality: Using the 28% rule (spending no more than 28% of gross income on housing), the median household in Anchorage can afford $1,692/month, while the median household in Missoula can afford $1,149/month. With median homes at $340,000 in Anchorage versus $460,000 in Missoula, homeownership requires above-median income in the pricier market.

Renting vs buying: At $1,400/month in Anchorage and $1,400/month in Missoula, renters face similar costs in both cities. The rent-to-own ratio in each city determines whether renting or buying offers better value for your situation.

Income adjustment: A $75,000 salary goes significantly further in Missoula. Before accepting a job in either city, use the salary equivalence data above to understand what you would need to earn to maintain your current standard of living.

Reading These Numbers: Anchorage (127) vs Missoula (115)

The cost of living index uses 100 as the national average. Anchorage at 127 is 27% above the US average, while Missoula at 115 is 15% above average. There is a meaningful cost gap between these two cities that affects day-to-day budgeting.

The overall index is a weighted average of housing (the largest component), groceries, utilities, transportation, and healthcare. Housing typically drives the biggest differences between cities. Even when two cities have similar overall indices, their category-level costs can vary significantly — one city might have expensive housing but cheap groceries, while another is the reverse. Check the category breakdown above for the full picture.

For renters: With median rents of $1,400/month in Anchorage and $1,400/month in Missoula, the annual rent difference is approximately $0. Over a 5-year period, that compounds to $0 in savings by choosing the more affordable city.

For homebuyers: The $120,000 difference in median home prices between Anchorage and Missoula translates to roughly $7,200 per month in mortgage payments at current rates. Factor this into your budget alongside property taxes and insurance, which also vary by location.

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