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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
Let's be honest: Alaska isn't cheap. But within that premium market, there are cities where your dollar stretches meaningfully further. Anchorage proves it with a cost index of 105, the lowest in Alaska, and we've ranked all 1 contenders to help you find the best deal in an expensive landscape.
#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
Let's be honest: Alaska isn't cheap. But within that premium market, there are cities where your dollar stretches meaningfully further. Anchorage proves it with a cost index of 105, the lowest in Alaska, and we've ranked all 1 contenders to help you find the best deal in an expensive landscape.
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. If you plug these numbers into any cost calculator, they hold up.
If you're ready to act on this, three things to do next: 1) Click into the city pages for the top 3 and check rent trends — direction matters more than the snapshot. 2) Run your income through the salary calculator for a personalized cost comparison. 3) Compare your top two picks head-to-head on our comparison page. The data is here; the decision is yours.
286,075 residents · Alaska
What does daily life actually cost in Anchorage? Start with the 20% rent-to-income ratio — that's the kind of margin that lets people build savings. On the category level, Utilities (index 97) is where the real savings show up, while Housing (index 113) is the line item most likely to surprise newcomers. Income at $98,152 and homes at $405,601 round out a profile that ranks #1 for clear reasons.
| City | State Tax | Sales Tax | Property Tax | Est. Take-Home |
|---|---|---|---|---|
1Anchorage | 0% | 1.82% | 1.04% | $73,997 |
Cities are ranked by median household income from Census ACS data. We also show cost-adjusted purchasing power (income ÷ cost index) to reveal which high-income cities actually deliver the most real-world spending power. 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.
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.