Cost Of Living in Homer, AK

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	Homer	Alaska	National
Cost of living	127	129	100
Goods & Services	117	120	100
Groceries	124	124	100
Health care	140	148	100
Housing	147	135	100
Transportation	112	115	100
Utilities	112	158	100

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Cost Of Living Quick Facts

The cost of living in Homer is 2% lower than the Alaska average
The cost of living in Homer is 27% higher than the national average
Homer housing is 47% higher than the national average
Alaska general sales tax is 100% lower than the national average
Alaska state income tax is 100% lower than the national average

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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	$73,673	$6,139	$1,719	$2,210
Renters	$48,049	$4,004	$1,121	$1,442

The percentage of monthly income spent on housing related expenses can help predict the affordability of housing in Homer, AK, as well as what the overall cost of living might be. Generally, a good rule to follow is that the debt-to-income (DTI) level you want to maintain is 28 percent or less of your income on your rent or mortgage payments and not more than 36 percent of income on all expenses and debts. In Homer, homeowners have a median income of $73,673. Using that number, a maximum of $1,719 per month should be allocated to housing expenses. For those who are renting instead of owning, the median income is $48,049, which means there is a maximum of $1,121 to be spent on the costs of renting a home or apartment.

Alaska Sales Tax

State	General Sales Tax	With Max Surtax
Alaska	0%	7%

Alaska Income Tax

State	Income Tax (Low)	Income Tax (High)
Alaska	0%	0%

Goods & Services

Item	Homer	National avg.	Difference
Haircut	$28.21	$24.26	16.3%
Beauty Salon	$47.27	$45.56	3.7%
Toothpaste	$3.81	$3.70	2.9%
Shampoo	$1.31	$1.28	2.0%
Movie	$13.19	$12.13	8.7%
Bowling	$18.08	$18.00	0.5%

Groceries

Item	Homer	National avg.	Difference
Ground Beef	$6.62	$5.84	13.3%
Fried Chicken	$2.45	$1.57	55.6%
Milk	$5.09	$4.67	9.0%
Potatoes	$5.98	$4.93	21.2%
Pizza	$12.76	$12.09	5.5%
Beer	$13.48	$10.41	29.5%

Health Care

Item	Homer	National avg.	Difference
Optometrist	$247.07	$125.68	96.6%
Doctor	$215.28	$135.78	58.6%
Dentist	$153.23	$113.29	35.3%
Ibuprofen	$12.38	$10.65	16.2%
Lipitor	$522.08	$468.60	11.4%

Housing

Item	Homer	National avg.	Difference
Home Price	$293,700.00	$184,700.00	59.0%
Avg. Mortgage Payment	$3,534.94	$2,346.69	50.6%
Apartment Rent	$1,124.00	$949.00	18.4%

Transportation

Item	Homer	National avg.	Difference
Gasoline	$3.93	$3.46	13.5%
Tire Balancing	$65.07	$59.92	8.6%

Utilities

Item	Homer	National avg.	Difference
All Electricity	$232.09	$193.99	19.6%
Phone	$189.01	$192.25	1.7%

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.
Nikolaevsk, AK	188	105	4.9%
Seldovia, AK	164	112	12.5%
Anchor Point, AK	2,247	114	14.0%
Seldovia Village, AK	175	117	16.8%
Fritz Creek, AK	2,034	126	26.1%
Homer, AK	5,830	127	26.7%

Cities with similar population

City	Population	Cost of Living Index	National Avg.
Medina, NY	5,829	84	16.5%
Granville, OH	5,829	120	20.5%
Loudon, TN	5,829	85	15.4%
Zimmerman, MN	5,831	106	6.5%
Bay Harbor Islands, FL	5,832	143	42.7%
Homer, AK	5,830	127	26.7%

Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.

Cost of Living in Homer, AK