Cost of Living in Monterey Park, CA

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An Overview of Cost of Living in Monterey Park, CA

Understanding the cost of living in Monterey Park can help future residents assess whether their current financial situation aligns with the expenses they will encounter. It enables them to plan for potential changes in their budget and lifestyle. The Monterey Park cost of living index is 170, which is 70% higher than the national average. The cost of living index is calculated by taking into account multiple categories, which encompass both the cost of everyday expenditures and larger expenses as well.

The cost of living in Monterey Park is among the highest in the country, making it a very expensive place to live. Only a small fraction of regions boast a cost of living that is at least 20% higher than the national average, and regrettably, Monterey Park falls into this category, which may not be suitable for those seeking an economically favorable living environment.

Housing costs are a major factor in the Monterey Park cost of living index, and they often eat up a big chunk of your take-home pay. Unfortunately, in this area, housing expenses for both homeownership and rentals were 191.5% higher than what's typical in an average city. That includes the prices of homes and rents, as well as mortgage rates and insurance.

Recurring goods and services expenses like haircuts, toothpaste, gym memberships and movie nights are a big part of your spending and make up 33% of the cost of living index. In Monterey Park, these items will cost you 21% more than what most folks pay, making it a bit more expensive to live here.

Is Monterey Park Affordable?

Wondering if Monterey Park is affordable? It's a question that often comes up when you're thinking about a new city since affordability can really shape your decisions. The cost of living index (covered earlier), housing expenses and income levels all play a part in the affordability equation. In Monterey Park, for example, the median home price is 249% higher than what folks pay nationally, and monthly rent is 57.5% higher than the usual rates. Plus, income levels matter too, with Monterey Park boasting a median household income of $92,998, which is 14.3% higher than the national average.

What Factors can Influence the Cost of Living in Monterey Park?

Transportation: In situations where public transportation is limited or nonexistent, local residents may be required to own and maintain their own vehicles, contributing to an elevated cost of living. Monthly expenditures may encompass fuel costs, insurance premiums, routine vehicle upkeep and possibly lease or financing payments. In Monterey Park, the transportation index is 37.9% higher than the national average.

Taxes: Areas with higher taxes, including sales taxes and income taxes, can contribute to a higher cost of living. Paying more tax for everyday goods and services like clothing and food will result in higher costs, as will paying a higher rate of income tax. The general sales tax rate in Monterey Park starts at 7.25% and the income tax rates start at 1%.

Utilities: Like everything else, utilities costs can range significantly depending on factors like climate, energy sources available, location and even state regulations. Things like electricity, water, heating and waste disposal costs can be higher or lower, depending on the city or state. The utilities index in Monterey Park comes in at 8.9% higher than the national average.

Where is the Data From?

The Monterey Park cost of living data displayed above is derived from the C2ER cost of living index to provide a useful and reasonably accurate measure of living cost differences in urban areas. Published on a quarterly basis, it compiles data from more than 300 independent researchers, encompassing over 60 goods and services. These items have been meticulously selected to represent various consumer expenditure categories, in 6 categories. Weightings assigned to cost differentials draw from government survey data tracking spending patterns among professional and executive households. While the C2ER index excludes data on sales or income tax rates, AreaVibes incorporates tax rates into the overall cost of living score for each region.

Most Affordable Places to Live in and Around Monterey Park

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Median Income & Debt-To-Income Ratio

To approximate the cost of living and the housing affordability in Monterey Park, CA, we can look at the percentage of income that is available to be spent on monthly housing, otherwise known as the debt-to-income ratio (DTI). To stay on the safe side, a consumer should not spend more than 28% of his or her gross income on housing-related expenses and costs and not more than 36% of income on all expenses and debts. Homeowners in Monterey Park have a median income of $140,803. Therefore, the amount that a consumer should spend on housing costs should be no more than $3,285 per month to avoid calamity and poverty. The renters in the city have an income of about $71,595, which would make their monthly maximum allowable rental costs $1,670.

California Sales Tax

California Income Tax

Goods & Services

Groceries

Health Care

Housing

Transportation

Utilities

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.

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Date & Last Updated: This data reflects 2025 and was released from C2ER in January, 2026; this is the most current data available.