A+
5%
Overall NAT. AVG.
2%
Goods & Services NAT. AVG.
16%
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 Madison Heights Michigan National
Cost of living9589100
Goods & Services10293100
Groceries10399100
Health care10293100
Housing8474100
Transportation10097100
Utilities94101100

An Overview of Cost of Living in Madison Heights, MI

The cost of living in Madison Heights affects the quality of life one can afford in this new location. It allows people to assess whether they can maintain their preferred lifestyle, including housing, leisure activities and dining options. Your total monthly expenditures can varry depending on the area, as well as many other factors. The cost of living in Madison Heights is 95, which is 5% lower than the national average. Knowledge of the cost of living can help individuals make informed decisions about retirement savings, investments, and financial goals.

In Madison Heights, daily expenses such as food, housing, goods and services, transportation and health care are in line with comparable areas and about average when compared to all cities across the nation. This ensures that the cost of living in Madison Heights will resemble that of an average city, contributing to a manageable cost of living.

Is Madison Heights Affordable?

Is Madison Heights an affordable place to live? It's a good question and one that you might want to ask when considering any new city, as affordability can play a huge role in the decision making process. The cost of living index (which we covered above), as well as housing costs and income levels play a vital role in determining the affordability of an area. The median home price in Madison Heights is 25.4% lower than the national average, while the average monthly rent prices are 4.5% higher than average. The affordability of any location can also be influenced by median income levels. Madison Heights has a median household income of $54,668, which is 1.2% lower than the national average.

What Factors can Influence the Cost of Living in Madison Heights?

Taxes: Regions that impose higher taxes, including sales and income taxes, can contribute to an increased cost of living. Higher taxes for everyday necessities such as clothing, utilities and food inevitably leads to higher expenditures. Additionally, a higher income tax rate can also play a role in elevating the overall cost of living. In Madison Heights, the prevailing sales tax rate starts at 6%, and income tax rates kick off at 4.25%.

Utilities: As with the prices of anything else, utility costs can exhibit significant variations, contingent on factors like climate, energy source availability, geographic location and state regulations. The expenses associated with electricity, water, heating, and waste disposal can fluctuate, either upward or downward, depending on the particular city or state. In Madison Heights, the utilities index registers 5.6% lower than the national average.

Urbanization: Urban areas with a wealth of amenities and employment opportunities tend to come with a higher price tag for living. Why? Well, more people want to be there, which drives up home prices and rents. On the flip side, less densely populated rural areas or places where there's not as much demand usually mean fewer attractions, things to do and slower job growth. That often results in a lower cost of living.

Where is the Data From?

The cost of living in Madison Heights, presented above is derived from the C2ER cost of living index, offering a practical method for assessing living cost disparities in urban areas. Published quarterly, this index compiles data from more than 300 independent researchers, encompassing over 60 goods and services in 6 categories. The weightings assigned to cost variances are informed by government survey data tracking the expenditure patterns of professional and executive households. It should be noted that the C2ER index does not include data on sales or income tax rates, however, AreaVibes incorporates tax rates into the overall cost of living score for each area.

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Cost Of Living Quick Facts

  • The cost of living in Madison Heights is 7% higher than the Michigan average
  • The cost of living in Madison Heights is 5% lower than the national average
  • Madison Heights housing is 16% lower than the national average
  • Michigan general sales tax is 18% higher than the national average
  • Michigan state income tax is 64% higher than the national average

Most Affordable Places to Live in and Around Madison Heights

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Compare Madison Heights, MI Cost of Living

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      Salary Calculator

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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$61,627$5,136$1,438$1,849
      Renters$43,144$3,595$1,007$1,294
      The affordability of the housing market in Madison Heights, MI as well as the overall cost of living can be predicted by what percent of the monthly income is spent on housing related costs. This is konwn as the debt-to-income ratio (DTI). The overall rule of thumb is that no more than 28% of your gross income should be spent on the overall costs related to housing and no more than 36% of gross income on all expenses and debts. Among Madison Heights homeowners, the median income is $61,627. This indicates that a monthly maximum of $1,438 should be spent by homeowners on all housing related costs. Renters have a median income of $43,144. This indicates that renters would have a maximum of $1,007 for their rent related monthly costs.

      Michigan Sales Tax

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

      Michigan Income Tax

      State Income Tax (Low) Income Tax (High)
      Michigan 4.25% 4.25%

      Goods & Services

      Item Madison Heights National avg. Difference
      Haircut $16.80$24.2630.8%
      Beauty Salon $24.78$45.5645.6%
      Toothpaste $3.66$3.701.1%
      Shampoo $1.13$1.2811.8%
      Movie $12.99$12.137.1%
      Bowling $12.33$18.0031.5%

      Groceries

      Item Madison Heights National avg. Difference
      Ground Beef $5.75$5.841.5%
      Fried Chicken $1.41$1.5710.4%
      Milk $4.78$4.672.3%
      Potatoes $4.80$4.932.8%
      Pizza $8.99$12.0925.6%
      Beer $9.04$10.4113.2%

      Health Care

      Item Madison Heights National avg. Difference
      Optometrist $85.00$125.6832.4%
      Doctor $103.33$135.7823.9%
      Dentist $91.00$113.2919.7%
      Ibuprofen $10.22$10.654.1%
      Lipitor $490.11$468.604.6%

      Housing

      Item Madison Heights National avg. Difference
      Home Price $137,700.00$184,700.0025.4%
      Avg. Mortgage Payment $1,709.07$2,346.6927.2%
      Apartment Rent $992.00$949.004.5%

      Transportation

      Item Madison Heights National avg. Difference
      Gasoline $3.35$3.463.1%
      Tire Balancing $56.00$59.926.5%

      Utilities

      Item Madison Heights National avg. Difference
      All Electricity $219.20$193.9913.0%
      Phone $184.44$192.254.1%
      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.
      Highland Park, MI10,8188218.3%
      Detroit, MI672,3518415.5%
      Inkster, MI24,3988515.1%
      Hamtramck, MI21,7048614.3%
      Pontiac, MI59,7148613.5%
      Madison Heights, MI30,000954.5%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Kahului, HI29,99317373.4%
      New Bern, NC29,985954.5%
      Fitchburg, WI30,03212121.3%
      North Chicago, IL29,967973.2%
      Burlingame, CA30,071336236.5%
      Madison Heights, MI30,000954.5%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.