Cost of Living in McGrath, AK

With a cost of living index of 71, McGrath, AK is one of the most affordable cities in the country. Living here is 29% cheaper than the national average and 19% below the Alaska state average of 90. McGrath is a small community of 195 residents.

Housing costs are the biggest factor in McGrath's cost of living. The median monthly rent is $855 (35% below the US median of $1,319), and the median home value sits at $102,200 (66% below the national median of $304,900). At current prices, the median home costs roughly 2x the median household income — well within traditional affordability guidelines.

The median household income in McGrath is $51,250, which is 32% lower than the national median of $75,149. Residents spend roughly 20% of household income on rent. This is a comfortable ratio, well below the 30% threshold that financial experts recommend as a maximum. Lower incomes here are balanced by the significantly lower cost of living, stretching each dollar further.

Climate is another factor for anyone considering a move to McGrath. The area sees an average annual temperature of 28.9°F, with summers averaging 58°F and winters around -1°F. Annual rainfall totals 18.1 inches spread over roughly 137 days. Cold winters mean higher heating bills, an important cost-of-living consideration.

Data sources: US Census Bureau (ACS 2023), Zillow Home Values, HUD Fair Market Rents, BEA Regional Price Parities, BLS Average Prices, and NOAA Climate Normals. Updated monthly.