How does the cost of living in Fairbanks compare to the U.S. average?

Fairbanks has a cost‑of‑living index of 123, meaning it is about 23 % more expensive than the national average. Housing is a major driver, with average rent at $1,464 per month, which is higher than many other parts of Alaska but comparable to larger U.S. cities. Everyday expenses such as groceries, utilities, and transportation also tend to be a bit above average because of the remote location and harsh climate. Your median household income in Fairbanks is roughly $56,940 per year, so budgeting for slightly higher prices—especially for heating and food—will help you maintain a comfortable lifestyle.