Cost of Living in
Rexburg, ID

The Real Price Tag: Living in Rexburg Isn't Cheap, It's Just Different

Forget the Cost of Living Index of 91.4. That number is an average, and averages are designed to obscure reality, not reveal it. While the spreadsheet wizards in Washington claim you can live comfortably in Rexburg on a shoestring, the local balance sheet tells a different story. The median household income sits at $50,359, which mathematically forces a single income earner to get by on roughly $27,697. To achieve what most would call a "comfortable" existence—one where you aren't just waiting for the next paycheck to clear—your household needs to be clearing significantly more than that median. This isn't about surviving; it's about absorbing the shock of local market dynamics that don't show up in a national index. We are looking at a town where the math of "livability" is warped by a housing shortage and the specific financial burdens of living in a high-growth area.

The Big Items

The breakdown of your monthly bleed starts with the biggest line item: housing. If you are looking to rent in Rexburg, you are stepping into a market defined by extreme scarcity and predatory pricing. The data shows "None" for specific rent averages, and that isn't a data error; it’s a signal that the rental market is effectively frozen. There is virtually no inventory. If you find a 2BR apartment, expect to pay a premium that pushes past $1,400 per month easily, likely closer to $1,600 if it’s renovated. Buying isn't the escape hatch you think it is, either. The median home price is $370,000. With today's interest rates hovering around 7%, a 20% down payment is out of reach for the median earner. You’re likely looking at an FHA loan with low down, which triggers PMI, pushing your monthly principal and interest payment alone to roughly $2,400, plus taxes and insurance. This creates a situation where buying is a massive cash-flow hit upfront, but renting is a bleeding wound of high monthly costs with zero equity return. The market heat comes from a simple supply/demand imbalance: the university grows, but the housing stock does not.

Taxes in Idaho are a game of "find the fee." The state income tax is a flat 6.5%, which grabs a significant chunk of your gross income before you even see it. If you are making $27,697, you are losing $1,800 a year to the state immediately. However, the real sting is property tax. In Madison County, effective tax rates hover around 0.8% to 1.0%. On that median $370,000 home, you are looking at an annual tax bill of roughly $3,330. That’s $277 a month just for the privilege of owning the land, separate from your mortgage. While there is no sales tax on groceries (a rare break), the sales tax on everything else is 6%. You feel this every time you buy a piece of furniture or pay for a service. It’s a constant drag on your disposable income.

Groceries and gas in Rexburg require you to abandon your national baseline expectations. We are isolated geographically, so supply chain costs are baked into the sticker price. A gallon of milk might run you $3.50, and a dozen eggs $3.00, which is comparable to the national average until you factor in the lack of competition. With fewer major chains, local grocers have less pressure to keep prices razor-thin. Gas prices are notoriously volatile here. Because we are a transit hub between Salt Lake City and Yellowstone, prices can spike 20 to 30 cents above the national average during peak travel seasons. You aren't paying for gas; you are paying for the logistics of getting it to the middle of nowhere.

Hidden 'Gotcha' Costs

The nickel and diming starts the moment you try to settle in. If you buy a home in a development built in the last 20 years, you are likely subject to an HOA fee. These aren't the $50/month deals of the past; we are seeing fees between $100 and $250/month for basic landscaping and snow removal. That is $1,200 to $3,000 a year of guaranteed bleed that never goes away. Then there is the specific insurance profile. Rexburg sits in a region where wildfire risk is real, and while flood zones are specific, the cost of "extended replacement cost" on your homeowner's policy has skyrocketed. Expect your annual premium to be $1,200+, and that’s if you have a clean record.

Parking is the hidden tax of the downtown and campus areas. If you work or study near the university, a parking pass isn't free. A semester pass can set you back $100+, and if you forget to move your car for street sweeping, the $45 ticket appears instantly. There are no toll roads directly in Rexburg, but if you commute south toward Idaho Falls or further, you will encounter plate-pass reader fees that nickel and dime you if you don't have a transponder. Even the utilities, while electricity is relatively cheap at 11.52 cents/kWh, come with "customer charges" and "facility fees" that are fixed costs. You pay roughly $15 to $20/month just for the privilege of being connected to the grid, regardless of how much power you use.

Lifestyle Inflation

The cost of "fun" in Rexburg is deceptive. It isn't New York City, but the ratio of cost to quality is often skewed. A night out for a couple of burgers and a beer at a local pub will easily run you $40 to $50 per person with tip. A pizza night is no longer a $20 affair; you’re looking at $30+ for a large with toppings. If you are a coffee drinker, supporting the local roasters is a habit that adds up. A specialty latte is $5.50 to $6.00. Buying one every workday is $120/month—that’s a car payment.

Gym memberships are another trap. While the university offers facilities, the private gyms in town charge a premium for convenience and equipment. A standard membership is $45 to $60/month, often with a $100+ initiation fee. If you have a family, the cost of a movie night at the local theater is brutal. Tickets are roughly $12 each, and a popcorn/soda combo for four is easily $30. You are suddenly spending $80+ for a few hours of entertainment. These aren't luxuries; they are the standard costs of maintaining a social life, and they chip away at that $27,697 income until it vanishes.

Salary Scenarios

The following table outlines the raw financial requirements to survive and thrive in Rexburg. These numbers assume a tax rate of roughly 20% (Federal + State + FICA) to get to Net Income.

Frugal Analysis:
To live frugally, a single person needs to gross $38,000. This puts your net monthly income around $2,500. You must find a roommate situation, likely paying $600-$700 in rent. You are driving a paid-off car because a $300 car payment destroys this budget. You are cooking at home 90% of the time. There is zero room for error. One medical emergency or car repair puts you in debt. For a family to live frugally on $60,000, it requires a level of discipline that borders on austerity. You are likely on SNAP or WIC assistance, living in older housing, and avoiding all "wants."

Moderate Analysis:
This is the "keeping up with the Joneses" tier. At $60,000 single income ($4,000 net), you can afford a 1BR apartment at market rate ($1,400), which consumes 35% of your take-home pay. You can lease a modest new car ($350/month), but that eats your disposable income. You are saving for retirement, maybe 5-10%, but you are still feeling the pinch of grocery and utility costs. A family on $90,000 ($6,000 net) is doing okay, but childcare costs (if applicable) will eat that surplus immediately. You are one major home repair away from dipping into savings.

Comfortable Analysis:
To actually be comfortable—to buy that median $370,000 home without being house-poor—you need to be in the top bracket. For a single person, $85,000 ($5,600 net) allows you to handle a $2,500 mortgage payment (PITI) and still have $3,000 left for everything else. You can max out a Roth IRA, have a healthy emergency fund, and go out to dinner without checking the menu prices first. For a family to live comfortably, $130,000+ is the baseline. This allows for a mortgage on a decent family home, two reliable vehicles, savings for college, and the ability to absorb the $1,500+ monthly cost of childcare. Anything less than these numbers, and you are making compromises on your quality of life every single day.