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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 — which, honestly, is lower than you'd expect here — — 22% above the national median — paired with a cost index of just 105, it delivers pur…
#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 — which, honestly, is lower than you'd expect here — — 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 way we see it, 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. Income: $98,152/year. Home price: $405,601. Population: 286,075. 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 the sort of advantage that turns renters into homeowners. Honestly, this is the kind of city that makes you wonder why more people aren't paying attention. The numbers are right there — rent that doesn't eat your paycheck, costs that actually leave room for a life. And yet it barely shows up in the national conversation about affordable places to live. Maybe that's a good thing. Maybe that's what keeps it affordable.
The utilities sub-index is derived from overall cost of living with regional BLS price adjustments. And for many people, a score of 97 (the top-10 average here) means utilities costs are about 3% below the national median. Anchorage leads at 97. Note: a low utilities index doesn't guarantee a low overall cost — check the full cost breakdown table below. That's not nothing.
The other side of the coin: The 1 cities we track in Alaska paint a clearly affordable picture. And with some exceptions, average cost index: 105. Fairly typical for a city this size. Median rent: $1,660/month. Household income: $98,152. Alaska is known for vast wilderness, high wages, and higher prices — and the data backs that reputation convincingly (not adjusted for inflation, but still telling).
Bottom line: Anchorage leads this ranking for clear, data-backed reasons — but the "best" city depends on your priorities. You get the picture. 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
The #1 spot goes to Anchorage, and the breakdown explains why. 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 (that's pre-tax, of course).
Cities are ranked by their utilities 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 utilities index at 97, 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.