Otsego cost of living index

In the event that the cost of living data was unavailable for this city, estimates based upon nearby cities were used. Each cost of living index is based on a national average of 100. If the amount is below 100, it is lower than the national average. If the amount is above 100, it is higher than the national average.
IndexOtsegoMichiganNational
Cost of living index8289100
IndexOtsegoMichiganNational
Goods & Services index8995100
Groceries index8392100
Health care index9596100
Housing index6273100
Transportation index9797100
Utilities index101100100
A general summary of the cost of living index in Otsego, MI is shown above. Compared to the state average of Michigan the cost of living index in Otsego, MI is 82, which is 8% lower than the average in Michigan and compared to the national average it is 18% lower than. The cost of living index is made up of several categories. These are transportation at 9%, utilities at 10%, goods and services at 33%, housing at 30%, groceries at 13%, and health care at 5%. The bulk of the cost of living index comes from the categories of goods and services and housing. If you look at everyday goods and services they can be a good indicator in a certain city of the general costs of goods there. In Otsego, MI goods and services come in at 6% lower than the average in Michigan and are 11% lower than compared to the nationwide average.

Did you know?

  • The cost of living in Otsego is 8% lower than the Michigan average.
  • The cost of living in Otsego is 18% lower than the national average.
  • The cost of housing in Otsego is 38% lower than the national average.
  • Michigan general sales tax is 18% higher than the national average.
  • Michigan state income tax is 91% higher than the national average.

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Compare Otsego, MI Cost of living To Other Cities

Salary Calculator

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Use the salary calculator to compare your current salary in Otsego, MI to any other city. The salary calculator will tell you how much you would need to earn in any given city to maintain the same standard of living based on the cost of living in each city. For example, if the cost of living in the city you are looking to relocate to is higher than the cost of living in Otsego, MI, then you would need to earn more income in order to maintain the same standard of living. To use the Otsego, MI salary calculator, simply enter in the name of the new city, then adjust the slider to your current income. The salary calculator will do the rest and let you know if you need to earn more or less in the new city. You will also see a complete breakdown of the cost of living.

Median Income & Debt-To-Income Ratio

Median IncomePer YearPer MonthMax Budget (28% DTI)Max Budget (36% DTI)
Owners$48,528$4,044$1,132$1,456
Renters$26,667$2,222$622$800
If you want to find a good determining factor for the cost of living and the general affordability of housing in Otsego, MI, all you must look at is the percentage of monthly income that should be spent on housing expenses, otherwise known as the debt-to-income ratio (DTI). Generally speaking, no more than 28 percent of your total gross income should be spent on your housing expenses and not more than 36 percent of your gross income on total expenses, including debts. In Otsego, MI, the median monthly income is $48,528 for those who own their own homes. Under the standard rule, that income level would allow for $1,132 to be budgeted for housing expenses each month, at the most. Renters, on the other hand, earn about $26,667, per the median income in the area. That would allow for renters to spend up to $622 on monthly rental expenses.

Michigan Sales Tax

StateGeneral Sales TaxWith Max Surtax
Michigan6%6%

Michigan Income Tax

StateIncome Tax (Low)Income Tax (High)
Michigan4.25%4.25%
When assessing the complete cost of living in Otsego, MI, the Michigan income tax and the Michigan sales tax percentages should unquestionably be taken into consideration. Sales taxes aren't just levies imposed onto sold goods, but they also include taxes that are charged when services are provided for a fee. The rates are different from state to state and can run has high as 7 percent. Some states have no sales tax at all. The Michigan maximum surtax is 6%, and the Michigan sales tax is 6%. By contrast, income tax is an unfortunate obligation that is charged by the government against earnings. Just like sales taxes, the rates for income taxes differ from state to state. They also decrease or increase according to the individual's tax bracket. Tax rates can run as high as 9 percent, with a minimum of zero. Income tax rates range from 4.25% to 4.25% in Michigan.

Goods & Services

ItemOtsegoNational avg.Difference
Haircut $14.95$14.592.4%
Beauty Salon $18.31$34.6847.2%
Toothpaste $1.67$2.4732.5%
Shampoo $0.85$1.0216.8%
Movie $7.85$9.8720.5%
Bowling $3.20$4.3927.1%

Groceries

ItemOtsegoNational avg.Difference
Ground Beef $3.65$4.4818.5%
Fried Chicken $1.14$1.4622.1%
Milk $2.61$2.3610.7%
Potatoes $2.40$3.0621.6%
Pizza $9.00$9.242.6%
Beer $8.10$8.636.2%

Health Care

ItemOtsegoNational avg.Difference
Optometrist $57.14$99.7842.7%
Doctor $88.50$105.0315.7%
Dentist $95.43$88.707.6%
Ibuprofen $8.10$9.4113.9%
Lipitor $301.16$298.500.9%

Housing

ItemOtsegoNational avg.Difference
Home Price $106,100.00$175,700.0039.6%
Avg. Mortgage Payment $687.82$1,081.0336.4%
Apartment Rent $590.00$920.0035.9%

Transportation

ItemOtsegoNational avg.Difference
Gasoline $1.93$2.097.9%
Tire Balancing $49.66$45.299.7%

Utilities

ItemOtsegoNational avg.Difference
All Electricity$173.63$170.801.7%
Phone $28.01$28.260.9%
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, StatePopulationCost of Living IndexNational Avg.
Galesburg, MI1,87678-22%
Bloomingdale, MI61278-22%
Gobles, MI76379-21%
Hopkins, MI65484-16%
Eastwood, MI6,73481-19%
Otsego, MI3,96182-18%

Cities with similar population

City, StatePopulationCost of Living IndexNational Avg.
San Manuel, AZ3,96185-15%
Burgaw, NC3,96097-3%
Whiteman AFB, MO3,96298-2%
Highland Acres, DE3,96211616%
Fox Farm-College, WY3,95977-23%
Otsego, MI3,96182-18%
Source: The Otsego, MI cost of living data displayed above is derived from the Council for Community and Economic Research (C2ER) for the fourth quarter of 2015.