Cost of Living in the USA: A Family Budget in 5 Cities

What goes into a family budget in the US?

Most household budgets come down to six lines: housing, utilities (power, gas, water, internet), transportation, health insurance, food and childcare. Many immigrant families have a seventh that newcomers tend to forget: money sent home every month.

To see how big those lines are nationally, look at the Bureau of Labor Statistics Consumer Expenditure Survey. In the 2024 data, released in December 2025, the average US household spent $78,535 a year, or about $6,545 a month.

These averages cover households of every size, so they're a reference point, not your budget. The local numbers below are far more useful.

How much is rent in cities with large Arab communities?

The best free official benchmark is HUD's Fair Market Rent (FMR). It's set at the 40th percentile. In other words, 40% of standard-quality units rented by recent movers go for less than this number.

FMRs are gross rents. They include the base rent plus most tenant-paid utilities, but not phone, cable or satellite TV, or internet.

Source: HUD Fair Market Rents, FY 2026 (revised figures effective May 21, 2026). HUD has also published FY 2027 figures, so check the site before you sign a lease.

The neighborhood matters more than the city

HUD also publishes Small Area FMRs by ZIP code. In east Dearborn (48126) the two-bedroom benchmark is $1,380, while in 48128, also in Dearborn, it's $2,030. In Bay Ridge, Brooklyn (11209), it's $3,240.

Because the FMR is a 40th-percentile figure, plenty of listings, especially in newer buildings, will be well above it. Read it as a fair price, not the cheapest one.

What does food cost for a family of four?

Every month the USDA prices four home-cooked food plans. According to the July 2026 report, the reference family (a man and a woman aged 19–50 and two children aged 6–11) costs:

• Thrifty plan: $1,024.90 a month
• Low-cost plan: $1,127.90
• Moderate-cost plan: $1,391.10

These are national averages. Expect more in New York and California. Halal meat prices vary widely from store to store. Buying in bulk from community butchers and getting produce, dairy and rice at discount supermarkets makes a real difference.

Transportation: car or transit?

Brooklyn is the one city on this list where you can realistically live without a car. A subway or local bus ride is $3, and if you tap the same card or phone, the MTA caps your spending at $35 in any 7 days. That's a maximum of about $303 a month for two adults.

In Dearborn, Houston and Anaheim, and to a large extent Paterson, a car is close to essential. For a rough full-cost yardstick (fuel, insurance, maintenance, depreciation), use the IRS business mileage rate: 76 cents per mile from July 1, 2026. Driving 1,000 miles a month works out to about $760.

Your real bill may differ. New drivers with no US driving record often pay high insurance premiums, which our car insurance guide explains.

Sample monthly budgets for a family of four in 5 cities

This table adds up three lines with official sources: gross rent for a two-bedroom (basic utilities included), food at the moderate-cost plan, and transportation. For Brooklyn we used transit for two adults. For the other cities we used one car driven 1,000 miles a month.

How does that compare with a paycheck?

Working 40 hours a week at Michigan's minimum wage ($13.73) grosses about $2,380 a month before taxes. At New York City's $17 an hour, it's about $2,947. A single minimum-wage income doesn't cover even these three lines in any of the five cities. See our minimum wage by state guide for every state's rate.

How much cash do you need to move in?

Your monthly budget is one thing. Move-in costs are another. When you sign a lease you'll usually pay first month's rent and a security deposit together. New York and California cap most deposits at one month's rent. Other states may allow more.

Example: a two-bedroom in Brooklyn at the $2,910 benchmark means about $5,820 at signing (first month plus a one-month deposit). In Dearborn at $1,411 it's $2,822 with a one-month deposit. Then add application fees, basic furniture and utility hookups. Some utility companies also ask for a deposit if you have no credit history.

A practical rule: save the full move-in amount, plus a cushion for several months of expenses until your income settles. Depending on your employer's pay cycle, your first US paycheck can arrive two weeks or more after you start.

Health insurance and childcare: the hardest lines to predict

Health insurance: With employer coverage, your share comes out of your paycheck. If you buy a Marketplace plan, the premium depends on your income, family size and the subsidy you qualify for. Children may be eligible for Medicaid or CHIP depending on the state and your income. Read our health insurance guide before you put a number on this line.

Childcare: The Department of Labor runs a National Database of Childcare Prices with county-level data, most recently for 2022. Look up your county and remember that prices have gone up since then. Public school from kindergarten through 12th grade is free, so the biggest costs usually come before school age and in after-school care.

How to cut costs in your first year

1. Pick a neighborhood by ZIP code. Check HUD's ZIP-level figures before you search. Within one city, the gap can top $600 a month.
2. Ask what the rent includes. If the landlord pays water and heat, your budget changes a lot.
3. Hold off on a second car. One reliable used car is cheaper than two. See our used car guide.
4. Check program eligibility. Food and children's health programs have income and residency rules, so ask your county social services office.
5. Cut remittance costs. Compare the fee and the exchange rate together. See sending money from the US.

Common mistakes

• Thinking in your home currency. A salary converted to pounds or dinars feels huge. Compare it with local rent instead.
• Forgetting taxes. Everything above is paid from take-home pay, after federal, state and payroll taxes.
• Trusting one listing. A single ad isn't the market. The HUD figure is a more honest starting point.
• Ignoring move-in costs. The security deposit, first month's rent, furniture and utility hookups all come due at once. Save for them separately.
• Leaving family support off the budget. If you send a fixed amount home, budget it like a bill from day one.

What next?

Choose your city and neighborhood, then get ready to apply for an apartment. No US credit history yet? Read renting an apartment with no credit. Just arrived? Use our first 90 days in the US checklist.

Frequently asked questions

Official sources we reviewed

• HUD — Fair Market Rents ↗
• BLS — Consumer Expenditure Survey ↗
• USDA — Cost of Food at Home ↗
• MTA — Fares and tolls ↗
• IRS — Standard mileage rates ↗
• DOL — National Database of Childcare Prices ↗