F
53%
Overall NAT. AVG.
9%
Goods & Services NAT. AVG.
164%
Housing NAT. AVG.
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Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.
The cost of living index is based on a national average of 100. For example, if the cost of living is 90, then it is 10% lower than average. If the cost of living is 110, then it is 10% higher than average. The breakdown for each index is as follows: goods & services (33%), groceries (13%), health care (5%), housing (30%), transportation (9%) and utilities (10%). If the cost of living data was unavailable for this city, estimates based upon nearby cities were used.
Index Olney Maryland National
Cost of living153119100
Goods & Services109106100
Groceries108106100
Health care9797100
Housing264150100
Transportation9598100
Utilities110111100

An Overview of Cost of Living in Olney, MD

Understanding the cost of living in Olney can help future residents assess whether their current financial situation aligns with the expenses they will encounter. It enables them to plan for potential changes in their budget and lifestyle. The Olney cost of living index is 153, which is 53% higher than the national average. The cost of living index is calculated by taking into account multiple categories, which encompass both the cost of everyday expenditures and larger expenses as well.

If you value affordability in your search for a new place to live, Olney may not be the most suitable option, as it stands out as one of the priciest areas in the entire United States. Only a small fraction of regions have a cost of living that is more than 20% higher than the national average, and regrettably, Olney falls into this category, which may not align with your desire for an affordable place to call home.

Housing costs significantly influence the Olney cost of living index, typically accounting for a substantial portion of one's post-tax income. Regrettably, within this particular region, expenses related to both residential ownership and renting exceeded those observed in an average city by 163.6%. This entails elements such as housing and rental prices, mortgage interest rates and insurance costs.

Is Olney Affordable?

Is Olney affordable? It's a key consideration when pondering a move, as affordability often shapes your choices. The cost of living index (we discussed it earlier), coupled with housing costs and income levels, serves as the cornerstone for determining a location's affordability. Take Olney, for instance, where the median home price falls 184.1% higher than the national average, and monthly rent rates are 115.7% higher than usual. Additionally, median income levels contribute to the equation, with Olney flaunting a median household income of $149,155, 169.6% higher than the national norm.

What Factors can Influence the Cost of Living in Olney?

Taxes: Areas with higher taxes, including sales taxes and income taxes, can contribute to a higher cost of living. Paying more tax for everyday goods and services like clothing and food will result in higher costs, as will paying a higher rate of income tax. The general sales tax rate in Olney starts at 6% and the income tax rates start at 2%.

Healthcare: The costs associated with healthcare and insurance premiums can exhibit notable disparities based on the city or state of residence. Access to healthcare facilities, out-of-pocket expenses for medical appointments, dental care charges, prescription medication costs and specialized medical care expenses all contribute to variations in the cost of living. In Olney, healthcare costs are 2.8% lower than the national average.

Groceries: Grocery expenditures have undergone notable escalation over the last 2-3 years. In some markets, the cost of food products has surged by more than 20%, while others have experienced only modest increments. These fluctuations in food costs can have a significant impact on the overall cost of living in any region. In Olney, the groceries index registers 8.3% higher than the national average.

Where is the Data From?

The Olney cost of living data displayed above is derived from the C2ER cost of living index to provide a useful and reasonably accurate measure of living cost differences in urban areas. The index takes into account data from 300 independent researches, covering more than 60 goods and services across 6 different categories, to create an overall index for each area, with 100 being the average. The C2ER index does not include sales or income tax rates in their data, however AreaVibes does include both income and sales tax rates in the overall cost of living score for each area.

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Cost Of Living Quick Facts

  • The cost of living in Olney is 29% higher than the Maryland average
  • The cost of living in Olney is 53% higher than the national average
  • Olney housing is 164% higher than the national average
  • Maryland general sales tax is 18% higher than the national average
  • Maryland state income tax is 11% lower than the national average

Most Affordable Places to Live in and Around Olney

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Compare Olney, MD Cost of Living

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      Price difference in compared to
      Cost of living index
      Goods & Services index
      Groceries index
      Health care index
      Housing index
      Transportation index
      Utilities index

      Median Income & Debt-To-Income Ratio

      Median Income Per Year Per Month Max Budget (28% DTI) Max Budget (36% DTI)
      Owners$156,609$13,051$3,654$4,699
      Renters$75,712$6,309$1,766$2,272
      To approximate the cost of living and the housing affordability in Olney, MD, we can look at the percentage of income that is available to be spent on monthly housing, otherwise known as the debt-to-income ratio (DTI). To stay on the safe side, a consumer should not spend more than 28% of his or her gross income on housing-related expenses and costs and not more than 36% of income on all expenses and debts. Homeowners in Olney have a median income of $156,609. Therefore, the amount that a consumer should spend on housing costs should be no more than $3,654 per month to avoid calamity and poverty. The renters in the city have an income of about $75,712, which would make their monthly maximum allowable rental costs $1,766.

      Maryland Sales Tax

      State General Sales Tax With Max Surtax
      Maryland 6% 6%

      Maryland Income Tax

      State Income Tax (Low) Income Tax (High)
      Maryland 2% 5.75%

      Goods & Services

      Item Olney National avg. Difference
      Haircut $26.11$24.267.6%
      Beauty Salon $70.08$45.5653.8%
      Toothpaste $3.81$3.702.8%
      Shampoo $1.51$1.2817.9%
      Movie $15.69$12.1329.3%
      Bowling $24.83$18.0038.0%

      Groceries

      Item Olney National avg. Difference
      Ground Beef $6.24$5.846.9%
      Fried Chicken $1.40$1.5711.0%
      Milk $4.78$4.672.2%
      Potatoes $5.49$4.9311.3%
      Pizza $12.56$12.093.9%
      Beer $11.10$10.416.6%

      Health Care

      Item Olney National avg. Difference
      Optometrist $92.00$125.6826.8%
      Doctor $135.03$135.780.5%
      Dentist $117.67$113.293.9%
      Ibuprofen $11.52$10.658.1%
      Lipitor $403.79$468.6013.8%

      Housing

      Item Olney National avg. Difference
      Home Price $524,700.00$184,700.00184.1%
      Avg. Mortgage Payment $4,819.29$2,346.69105.4%
      Apartment Rent $2,047.00$949.00115.7%

      Transportation

      Item Olney National avg. Difference
      Gasoline $3.25$3.466.0%
      Tire Balancing $59.00$59.921.5%

      Utilities

      Item Olney National avg. Difference
      All Electricity $222.47$193.9914.7%
      Phone $197.37$192.252.7%
      Although the cost of living data is updated regularly, this cost of living information is to be used as estimates only as prices can change on an ongoing basis.

      Nearby cities with low cost of living

      City Population Cost of Living Index National Avg.
      Cottage City, MD1,1501088.4%
      Greenbelt, MD23,25311919.5%
      Leisure World, MD9,31411717.0%
      Langley Park, MD19,39112121.5%
      East Riverdale, MD16,39512322.7%
      Olney, MD35,35015353.5%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Moose Jaw, SK35,355n/a 
      La Porte, TX35,340982.1%
      Carrollwood, FL35,3601099.4%
      Monroe, NC35,339991.2%
      Lufkin, TX35,3368812.3%
      Olney, MD35,35015353.5%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.