Ann Arbor vs Fayetteville
Cost of Living Comparison · 2026
Ann Arbor
Fayetteville
The Verdict
Fayetteville is 40.7% less expensive than Ann Arbor overall. A household earning $75,000 in Ann Arbor would need approximately $53,289 in Fayetteville to maintain the same standard of living.
Category-by-Category Breakdown
Index values · National average = 100 · Lower is more affordable
Salary Equivalence
A $75,000 salary in Ann Arbor has the same purchasing power as $53,289 in Fayetteville.
Conversely, $75,000 in Fayetteville equals $105,556 in Ann Arbor.
Living in Ann Arbor vs Fayetteville
Housing Costs
Ann Arbor's housing index of 135 is higher Fayetteville's 52, translating to median home prices of $400,000 vs $213,000. The $187,000 difference in home prices means roughly $12,156 per year in additional mortgage costs at current rates. Renters face a similar gap: $1,600/mo in Ann Arbor compared to $1,075/mo in Fayetteville, a monthly difference of $525.
Grocery & Food Costs
Grocery expenses index at 101 in Ann Arbor and 94 in Fayetteville. A household spending the national average of $475/month on groceries would pay approximately $480/month in Ann Arbor vs $447/month in Fayetteville. Fayetteville offers a meaningful advantage on everyday food costs, saving roughly $396/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 106 in Fayetteville. This encompasses insurance premiums, doctor visit copays, dental care, and prescription costs. Healthcare costs are relatively similar between these two cities, though individual plan costs can still vary.
Income & Purchasing Power
Median household income is $65,024 in Ann Arbor and $49,800 in Fayetteville. After adjusting for local costs, purchasing-power-equivalent incomes are approximately $57,039 and $61,481 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 $1,162/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 $1,075/mo remains manageable. The biggest category-level difference between these two cities is Housing, where the gap is 83 index points — focus your budget analysis there.
Frequently Asked Questions
Moving & Relocation Resources
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