Rochester 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.
IndexRochesterMichiganNational
Cost of living index11489100
IndexRochesterMichiganNational
Goods & Services index10994100
Groceries index10194100
Health care index111100100
Housing index13873100
Transportation index103101100
Utilities index9496100
An overview of the general cost of living index for Rochester, MI is displayed above for your reference. Residents in Rochester, MI enjoy a cost of living index of 114. This index is 29% higher than the Michigan average, and 14% higher than the national average. The following categories are used when determining the cost of living index for any given city: health care (5%), transportation (9%), utilities (10%), groceries (13%), housing (30%), and goods/services (33%). Clearly, housing and goods/services make up the majority of the formula for calculating the cost of living index. Because of this, the general cost of living for any given area can be estimated by looking at the cost of everyday goods in that area. For those living in Rochester, MI, the average cost of goods and services is 15% higher than it is in Michigan, and it is 9% higher than the national average.

Did you know?

  • The cost of living in Rochester is 29% higher than the Michigan average.
  • The cost of living in Rochester is 14% higher than the national average.
  • The cost of housing in Rochester is 38% higher 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 Rochester, MI Cost of living To Other Cities

Salary Calculator

This is how much you would need to earn in
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Cost of living index
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Groceries index
Health care index
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Using the salary calculator lets you compare the salary you earn in Rochester, MI to what it is in other cities. It will let you know what your earnings would have to be in another city to have the same standard of living, as determined by the cost of living in each city. For example, if the cost of living in the area you want to move to is higher than the cost of living in Rochester, MI, you have to earn a higher income in order to still have the same standard of living. To operate the Rochester, MI salary calculator, put in the name of the other city, then move the slider to the point that represents the current income. The salary calculator will take care of the rest and tell you how much more or less you must earn in the new city. A Total breakdown of the cost of living is also provided.

Median Income & Debt-To-Income Ratio

Median IncomePer YearPer MonthMax Budget (28% DTI)Max Budget (36% DTI)
Owners$114,891$9,574$2,681$3,447
Renters$41,758$3,480$974$1,253
A good way to judge both the affordability of the housing and the cost of living is by simply calculating the maximum that a person should spend on housing in Rochester, MI, otherwise known as the debt-to-income ratio (DTI). The safest way to live in the city is to avoid spending more than 28 percent of the gross income that one earns on costs that pertain to housing and no more than 36 percent on all expenses and debts. Rochester, MI has a median income of about $114,891 for people who own homes. Based on that number, a person should spend a maximum of $2,681 on expenses related to housing. Renters have a slightly different median income, which is $41,758. Based on this average, renters should spend no more than $974 on all of their rental costs if they want to maintain a non-impoverished standard of living.

Michigan Sales Tax

StateGeneral Sales TaxWith Max Surtax
Michigan6%6%

Michigan Income Tax

StateIncome Tax (Low)Income Tax (High)
Michigan4.25%4.25%
When you are determining the total cost of living in Rochester, MI you will want to make sure you consider both the Michigan sales tax and the Michigan income tax rates. Sales tax come in the form of taxes levied on both services and goods that are sold. The sales tax rates are different state to state and range from zero sales tax to higher than 7%. The sales tax in Michigan is 6%, with the highest surtax being 6%. Tax that is on income by the government is income tax. Different states have different income tax rates and these rates can be higher or lower dependent on the corresponding tax bracket. The state income tax rates are different state to state and range from no income tax to more than 9% income tax. The income tax rates in Michigan have a range from 4.25% to 4.25%.

Goods & Services

ItemRochesterNational avg.Difference
Haircut $18.34$15.5617.9%
Beauty Salon $41.74$36.1115.6%
Toothpaste $2.96$2.4719.7%
Shampoo $0.73$0.9624.0%
Movie $11.00$10.138.6%
Bowling $3.58$4.7424.4%

Groceries

ItemRochesterNational avg.Difference
Ground Beef $4.51$3.9813.2%
Fried Chicken $2.02$1.4143.3%
Milk $1.93$2.066.3%
Potatoes $3.31$2.9811.0%
Pizza $9.65$9.471.9%
Beer $7.81$8.7911.2%

Health Care

ItemRochesterNational avg.Difference
Optometrist $84.26$101.0416.6%
Doctor $139.39$107.4429.7%
Dentist $100.94$90.4211.6%
Ibuprofen $8.20$9.2811.7%
Lipitor $439.61$426.503.1%

Housing

ItemRochesterNational avg.Difference
Home Price $280,000.00$175,700.0059.4%
Avg. Mortgage Payment $1,166.18$1,133.232.9%
Apartment Rent $799.00$920.0013.2%

Transportation

ItemRochesterNational avg.Difference
Gasoline $1.94$1.992.7%
Tire Balancing $53.61$45.7617.2%

Utilities

ItemRochesterNational avg.Difference
All Electricity$182.66$163.8111.5%
Phone $20.00$28.3929.5%
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.
Center Line, MI8,27985-15%
Pontiac, MI59,65887-13%
Mount Clemens, MI16,34588-12%
Roseville, MI47,40889-11%
Madison Heights, MI30,02890-10%
Rochester, MI12,87211414%

Cities with similar population

City, StatePopulationCost of Living IndexNational Avg.
Hamilton Square, NJ12,87012828%
Ridgefield Park, NJ12,87512929%
Ardmore, PA12,86712626%
Port Neches, TX12,87791-9%
Centralia, IL12,88082-18%
Rochester, MI12,87211414%
Source: The Rochester, MI cost of living data displayed above is derived from the Council for Community and Economic Research (C2ER) for the fourth quarter of 2016.