C+
13%
Overall NAT. AVG.
2%
Goods & Services NAT. AVG.
41%
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 Farmington Hills Michigan National
Cost of living11389100
Goods & Services10293100
Groceries10399100
Health care10293100
Housing14174100
Transportation10097100
Utilities94101100

An Overview of Cost of Living in Farmington Hills, MI

Understanding the cost of living in Farmington Hills can help future residents assess whether their current financial situation aligns with the expenses they will encounter. It enables them to plan for potential changes in their budget and lifestyle. The Farmington Hills cost of living index is 113, which is 13% higher than the national average. The cost of living index is calculated by taking into account multiple categories, which encompass both the cost of everyday expenditures and larger expenses as well.

Housing costs are a major factor in the Farmington Hills cost of living index, and they often eat up a big chunk of your take-home pay. Unfortunately, in this area, housing expenses for both homeownership and rentals were 40.6% higher than what's typical in an average city. That includes the prices of homes and rents, as well as mortgage rates and insurance.

Is Farmington Hills Affordable?

Is Farmington Hills affordable? It's a key consideration when pondering a move, as affordability often shapes your choices. The cost of living index (we discussed it earlier), coupled with housing costs and income levels, serves as the cornerstone for determining a location's affordability. Take Farmington Hills, for instance, where the median home price falls 46.2% higher than the national average, and monthly rent rates are 27.6% higher than usual. Additionally, median income levels contribute to the equation, with Farmington Hills flaunting a median household income of $85,152, 53.9% higher than the national norm.

What Factors can Influence the Cost of Living in Farmington Hills?

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 Farmington Hills, the utilities index registers 5.6% lower than the national average.

Housing: When there's a high demand for housing in trendy places, it can cause property prices and rental rates to soar, leading to a significantly higher cost of living. Conversely, in less desirable locations, where demand is low, prices tend to decrease, resulting in a more budget-friendly cost of living. In Farmington Hills, the housing index is 40.6% higher than the national average.

Healthcare: Healthcare costs and insurance premiums can undergo substantial fluctuations based on the city or state of residence. Elements such as the availability of healthcare facilities, out-of-pocket costs for medical consultations, dental expenses, prescription medication charges and specialized medical care fees all contribute to variations in the cost of living. In Farmington Hills, healthcare costs are 2.2% higher than the national average.

Where is the Data From?

The Farmington Hills cost of living data displayed above is derived from the C2ER cost of living index to provide a useful and reasonably accurate measure of living cost differences in urban areas. Published on a quarterly basis, it compiles data from more than 300 independent researchers, encompassing over 60 goods and services. These items have been meticulously selected to represent various consumer expenditure categories, in 6 categories. Weightings assigned to cost differentials draw from government survey data tracking spending patterns among professional and executive households. While the C2ER index excludes data on sales or income tax rates, AreaVibes incorporates tax rates into the overall cost of living score for each region.

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Cost Of Living Quick Facts

  • The cost of living in Farmington Hills is 26% higher than the Michigan average
  • The cost of living in Farmington Hills is 13% higher than the national average
  • Farmington Hills housing is 41% higher 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 Farmington Hills

See all the best places to live around Farmington Hills

Compare Farmington Hills, MI Cost of Living

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      Salary Calculator

      This is how much you would need to earn in
      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$110,226$9,186$2,572$3,307
      Renters$53,789$4,482$1,255$1,614
      The percent of monthly income spent on housing can be a good indicator of the affordability of housing in Farmington Hills, MI, as well as the overall cost of living. As a general rule of thumb, the debt-to-income ratio (DTI) for homeowners or renters should be not more than 28 percent of gross income to be spent on housing related costs and not more than 36 percent of income on all expenses, including debts. The median income for Farmington Hills homeowners, is $110,226. This would allow for a maximum of $2,572 per month to be spent on housing costs. For renters, the median monthly income is $53,789 which would result in a maximum of $1,255 to be spent on rental 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 Farmington Hills 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 Farmington Hills 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 Farmington Hills 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 Farmington Hills National avg. Difference
      Home Price $270,000.00$184,700.0046.2%
      Avg. Mortgage Payment $1,709.07$2,346.6927.2%
      Apartment Rent $1,211.00$949.0027.6%

      Transportation

      Item Farmington Hills National avg. Difference
      Gasoline $3.35$3.463.1%
      Tire Balancing $56.00$59.926.5%

      Utilities

      Item Farmington Hills 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.
      River Rouge, MI7,4658019.9%
      Highland Park, MI10,8188218.3%
      Inkster, MI24,3988515.1%
      Pontiac, MI59,7148613.5%
      Melvindale, MI10,3008712.7%
      Farmington Hills, MI80,93711312.6%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Auburn, WA80,91413232.1%
      Lynchburg, VA80,970955.0%
      Warwick, RI81,04311414.2%
      Deerfield Beach, FL80,8221066.1%
      Tustin, CA80,81517474.1%
      Farmington Hills, MI80,93711312.6%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.