Is It Cheap to Live in Idaho? A Cost of Living Review

Overall Affordability Overview

The cost of living is often represented by an index, which measures how much basic goods and services cost in a particular area relative to a national average, typically set at 100. An index below 100 indicates lower costs, while above 100 signifies higher expenses. For many years, Idaho has generally maintained a cost of living index below the national average, suggesting a more affordable environment. This trend meant income could stretch further than in more expensive regions.

While still perceived as generally affordable, recent demographic shifts and economic growth have influenced this dynamic. Overall affordability continues to be a significant factor for individuals and families considering relocation.

Housing Market Realities

Housing is typically the most substantial portion of a budget, and Idaho’s housing market has experienced considerable changes in recent years. While historical home prices were notably lower than the national median, sustained population growth has driven demand, leading to increases in both purchase prices and rental costs. As of mid-2025, the median home price in Idaho generally ranges from approximately $400,000 to $550,000, depending on the specific market, and can still be below the national median in some areas.

Median rental costs for a two-bedroom apartment often range from $1,400 to $2,000 per month across different regions. Factors influencing these costs include limited inventory, a steady influx of new residents, and prevailing interest rates. While urban and suburban areas have seen the most significant appreciation, even some rural communities are experiencing upward pressure on housing expenses.

Everyday Expenses

Daily expenditures, including utilities, groceries, and transportation, contribute significantly to the overall cost of living. Monthly utility bills typically include electricity ($80-$150), natural gas ($50-$120), and water/sewer/trash services ($70-$100). Internet services usually add another $60-$90 per month. These figures reflect a general range, with larger households or those with higher consumption patterns incurring greater costs.

Grocery expenses in Idaho are generally comparable to or slightly below the national average. A monthly food budget for an individual might range from $350 to $500, while a family of four could spend between $900 and $1,300. This includes a mix of fresh produce, meats, and pantry items, with prices influenced by local agricultural output and supply chain dynamics.

Transportation costs primarily involve vehicle ownership, as public transit options are limited outside of major urban centers. Gasoline prices are often slightly higher than the national average due to logistical factors. Vehicle insurance premiums are generally in line with national averages, often ranging from $1,200 to $1,800 annually for full coverage.

Tax Landscape

Idaho’s tax structure directly impacts disposable income. The state levies a progressive individual income tax, with rates generally ranging from approximately 0% to 5.8% for tax year 2024, applied across different income brackets.

Idaho’s state sales tax rate is 6%, applying to most goods and services, with some exemptions for necessities like groceries. While the state sales tax is uniform, some local jurisdictions may impose additional sales taxes, though these are less common. Property taxes are assessed at the local level by counties based on fair market value. The effective property tax rate in Idaho is typically lower than the national average, often falling below 1% of a property’s assessed value.

Regional Cost Variations

While state-level averages provide a general understanding, the cost of living within Idaho exhibits significant regional variations. Major metropolitan areas, such as Boise, Meridian, and Nampa in the Treasure Valley, present higher living expenses, primarily driven by elevated housing costs. For example, median home prices in Boise can easily exceed $500,000, and rental rates for apartments are similarly at the higher end of the state’s spectrum. This area’s robust job market and amenities attract a large population, contributing to increased demand and pricing.

In contrast, smaller cities like Idaho Falls and Pocatello offer a more moderate cost of living, with housing prices and rental rates often 15% to 30% lower than in the Treasure Valley. Median home prices in these areas might range from $350,000 to $450,000, and rents are proportionally lower. Rural communities throughout the state generally represent the most affordable options, with significantly lower housing costs and property taxes. However, these areas may have fewer job opportunities and limited access to services, which can offset some of the financial savings.