City Comparison

Ann Arbor vs Fayetteville

Cost of Living Comparison · 2026

Ann Arbor

Michigan
114
Above Average
$400,000
Median Home
$1,600/mo
Median Rent
$65,024
Median Income

Fayetteville

Arkansas
90
Below Average
$332,000
Median Home
$1,025/mo
Median Rent
$59,100
Median Income

The Verdict

26.7%

Living in Fayetteville costs 26.7% less than Ann Arbor. To match the purchasing power of a $75,000 salary in Ann Arbor, you would need $59,211 in Fayetteville.

Category-by-Category Breakdown

Index values · National average = 100 · Lower is more affordable

Housing
135
Ann Arbor
94
Fayetteville
Groceries
101
Ann Arbor
92
Fayetteville
Utilities
99
Ann Arbor
98
Fayetteville
Transportation
101
Ann Arbor
95
Fayetteville
Healthcare
101
Ann Arbor
78
Fayetteville

Salary Equivalence

A $75,000 salary in Ann Arbor has the same purchasing power as $59,211 in Fayetteville.

Conversely, $75,000 in Fayetteville equals $95,000 in Ann Arbor.

Living in Ann Arbor vs Fayetteville

Housing Costs

Ann Arbor's housing index of 135 is higher Fayetteville's 94, translating to median home prices of $400,000 vs $332,000. The $68,000 difference in home prices means roughly $4,416 per year in additional mortgage costs at current rates. Renters face a similar gap: $1,600/mo in Ann Arbor compared to $1,025/mo in Fayetteville, a monthly difference of $575.

Grocery & Food Costs

Grocery expenses index at 101 in Ann Arbor and 92 in Fayetteville. A household spending the national average of $475/month on groceries would pay approximately $480/month in Ann Arbor vs $437/month in Fayetteville. Fayetteville offers a meaningful advantage on everyday food costs, saving roughly $516/year.

Utility Expenses

Utility costs — electricity, gas, water, internet — index at 99 in Ann Arbor and 98 in Fayetteville. Monthly utility bills average approximately $396 in Ann Arbor vs $392 in Fayetteville. Utility costs are relatively comparable between these two cities.

Healthcare

Healthcare costs index at 101 in Ann Arbor and 78 in Fayetteville. This encompasses insurance premiums, doctor visit copays, dental care, and prescription costs. The 23-point gap reflects real differences in provider costs, insurance market competition, and regional healthcare infrastructure.

Income & Purchasing Power

Median household income is $65,024 in Ann Arbor and $59,100 in Fayetteville. After adjusting for local costs, purchasing-power-equivalent incomes are approximately $57,039 and $65,667 respectively. Fayetteville residents come out ahead in real purchasing power.

Relocation Considerations

Under the standard 28% rule, a median-income household can allocate $1,517/month to housing in Ann Arbor vs $1,379/month in Fayetteville. In Ann Arbor, median rent of $1,600/mo exceeds this threshold, suggesting renters may feel stretched. In Fayetteville, median rent of $1,025/mo remains manageable. The biggest category-level difference between these two cities is Housing, where the gap is 41 index points — focus your budget analysis there.

Frequently Asked Questions

Fayetteville is 26.7% more affordable overall with an index of 90 vs 114.
A $75,000 salary in Ann Arbor has equivalent purchasing power to approximately $59,211 in Fayetteville, based on the cost of living difference.
Ann Arbor's housing index is 135 with median homes at $400,000, while Fayetteville's is 94 with median homes at $332,000.

Moving & Relocation Resources

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