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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 healthcare sub-index is derived from overall cost of living with regional BLS price adjustments. A score of 108 (the top-10 average here) means healthcare costs are about -8% below the national median. Anchorage leads at 108. Note: a low healthcare index doesn't guarantee a low overall cost — check the full cost breakdown table below (that's pre-tax, of course).
Why Anchorage ranks #1: the numbers tell a clear story. At 105 on the cost index, residents save roughly 7% less than the typical American. Rent sits at $1,660/month — for better or worse — while the median household pulls in $98,152/year. The Utilities category is particularly strong at 97, though Housing (113) lags behind. Home prices average $405,601 — $61,769 below the national median.
It checks most boxes — but the housing costs are the asterisk. In Anchorage, the housing index sits at 113 — above average and worth factoring in.
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.
286,075 residents · Alaska
Anchorage earns its position at #1 through a combination that's hard to replicate. The 105 cost index sits 7 points below the national baseline, and the $98,152 median income means purchasing power here is genuinely above average. Homes list at $405,601 — $61,769 below the national median — a genuine ownership opportunity. On the cost side, Utilities leads the way at 97, while Housing trails at 113 (not adjusted for inflation, but still telling).
Cities are ranked by their healthcare cost sub-index within Alaska. Each sub-index is derived from the overall cost of living with regional adjustment factors. All data is sourced from federal agencies and verified research institutions. Cost of living indices are normalized to 100 (national median) using Zillow rent as the primary signal, with sub-category adjustments derived from regional BLS price data. Rankings are updated monthly as new data is released.
Anchorage ranks #1 in Alaska for this analysis with a cost index of 105 and median income of $98,152.
Anchorage, AK has the lowest healthcare index at 108, compared to the national average of 100.
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.