Ann Arbor vs Waco
Cost of Living Comparison · 2026
Ann Arbor
Waco
The Verdict
Living in Waco costs 37.3% less than Ann Arbor. To match the purchasing power of a $75,000 salary in Ann Arbor, you would need $54,605 in Waco.
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 $54,605 in Waco.
Conversely, $75,000 in Waco equals $103,012 in Ann Arbor.
Living in Ann Arbor vs Waco
Housing Costs
Ann Arbor's housing index of 135 is higher Waco's 63, translating to median home prices of $400,000 vs $230,000. The $170,000 difference in home prices means roughly $11,052 per year in additional mortgage costs at current rates. Renters face a similar gap: $1,600/mo in Ann Arbor compared to $1,050/mo in Waco, a monthly difference of $550.
Grocery & Food Costs
Grocery expenses index at 101 in Ann Arbor and 95 in Waco. A household spending the national average of $475/month on groceries would pay approximately $480/month in Ann Arbor vs $451/month in Waco. Waco offers a meaningful advantage on everyday food costs, saving roughly $348/year.
Utility Expenses
Utility costs — electricity, gas, water, internet — index at 99 in Ann Arbor and 97 in Waco. Monthly utility bills average approximately $396 in Ann Arbor vs $388 in Waco. Utility costs are relatively comparable between these two cities.
Healthcare
Healthcare costs index at 101 in Ann Arbor and 93 in Waco. 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 $49,500 in Waco. After adjusting for local costs, purchasing-power-equivalent incomes are approximately $57,039 and $59,639 respectively. Waco 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 $1,155/month in Waco. In Ann Arbor, median rent of $1,600/mo exceeds this threshold, suggesting renters may feel stretched. In Waco, median rent of $1,050/mo remains manageable. The biggest category-level difference between these two cities is Housing, where the gap is 72 index points — focus your budget analysis there.
Frequently Asked Questions
Moving & Relocation Resources
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