Loading
Assembling your view…
Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
Anchorage might not be the first city that comes to mind when you think of affordability in Alaska, but the numbers don't lie. With a median income of $98,152 — 22% above the national median — paired with a cost index of just 105, it delivers purchasing power that most cities can't match. We analyze…
#1 Ranked: Anchorage — cost index 105, rent $1,660/mo, income $98,152
1 of 1 cities come in below the national cost-of-living average of 112
Data sourced from Census Bureau, Zillow, BLS, and Tax Foundation — current as of 2026
Anchorage might not be the first city that comes to mind when you think of affordability in Alaska, but the numbers don't lie. With a median income of $98,152 — 22% above the national median — paired with a cost index of just 105, it delivers purchasing power that most cities can't match. We analyzed 1 cities using 2026 data from the Census Bureau, Zillow, and BLS to assemble this ranking.
The #1 spot goes to Anchorage, and the breakdown explains why. And as far as the data shows, renters here pay $1,660/month — saving renters $2,820 per year compared to the national average. Meanwhile, Utilities is the standout at index 97, keeping costs manageable. The weak spot? Housing at 113. At a 20% rent-to-income ratio, there's genuine breathing room in the average household budget (not adjusted for inflation, but still telling).
Value = income ÷ cost index. The national benchmark ratio is 718. Anchorage delivers 935 — 30% more purchasing power per dollar earned. This metric catches cities that expensive-but-high-paying rankings miss: a $90K salary in a city with index 80 buys more than $120K in a city with index 150 (though the trend is moving in the right direction).
What's equally notable: Across Alaska, the average cost of living index is 105 — 7 points below the national median. Known for vast wilderness, high wages, and higher prices, the state offers 1 tracked cities with median rents averaging $1,660/month — we had to double-check this one — . That's $235 less than the national average of $1,895. That's a red flag worth investigating further.
Bottom line: Anchorage leads this ranking for clear, data-backed reasons — but the "best" city depends on your priorities. Click into any city below to see the full detail page with 12-month trend charts, profession-specific salary data, and a breakdown of all five cost categories. If you're seriously considering a move, use our salary calculator to model your specific income against these numbers (that's pre-tax, of course).
286,075 residents · Alaska
Here's Anchorage by the numbers — and there's a lot to like (and a little to watch). Cost index: 105. Rent: $1,660/month — for better or worse — . Income: $98,152/year. Home price: $405,601. Population: 286,075. It lines up with what you'd expect. The strongest category is Utilities at 97; the most expensive is Housing at 113. Translate that rent to annual numbers, and residents are saving renters $2,820 per year vs. the national median. That's not something you see often in the data.
Anchorage ranks #1 in Alaska for this analysis with a cost index of 105 and median income of $98,152.
Our cost of living index uses real Zillow rent data as the foundation, indexed to 100 (national median). Sub-categories (housing, food, transport, utilities, healthcare) are derived from the overall index with regional adjustments. Data is updated monthly.
City data is refreshed monthly from Census Bureau population estimates, Zillow rent and home price indices, BLS salary data, and Tax Foundation tax rates. Last updated: 2026.
The median 1-bedroom rent in Anchorage is $1,660/month as of 2026, based on Zillow's Observed Rent Index. This is $235 below the national median of $1,895/month.
The median home price in Anchorage is $405,601, which is 4.1× the local median income. It's on the edge of affordability for median-income households. The national median home price is $467,370.
Alaska has a 0% state income tax rate — one of the states with no income tax. Combined state and local sales tax averages 1.82%, and the effective property tax rate is 1.04%.
This ranking was generated using data current as of early 2026. Population and income data comes from the Census Bureau's American Community Survey (5-year estimates). Rent and home price data is from Zillow's monthly releases. Tax rates are from the Tax Foundation's 2025 edition. Rankings are refreshed monthly.