How expensive is Sacramento?
Sacramento costs less than coastal California and more than most of the country. The Census Bureau's 2020-2024 survey puts the city's median household income at $87,321, below California's $99,122, and its median gross rent at $1,779 against $2,036 statewide. Its median owner-estimated home value, $506,300, is about $228,000 below the state's $734,700. Just over half of households, 51.7%, own their home.
Values have also come down. Zillow's typical home value of $470,552 in September 2026 is 0.6% lower than a year earlier and about 9% below the July 2022 peak of $516,899, while rent rose 1.2% in a year. So buying in Sacramento has become slightly cheaper in price terms since 2022, though higher mortgage rates have eaten most of that gain.
Housing costs in Sacramento
Buying a home in Sacramento
At Zillow's typical value of $470,552, a buyer putting 20% down borrows about $376,442. At Freddie Mac's 7.24% average 30-year rate for the week of October 29, 2026, principal and interest come to about $2,565 a month. Redfin's median sale price for the city over the three months to September 2026 was $508,258, which puts the same calculation at about $2,771. Prices vary widely by area: see Sacramento home values by ZIP.
Renting in Sacramento
Zillow's observed rent for Sacramento was $2,045 in September 2026, up 1.2% in a year and 14.6% in five years. At that rent a household spends $24,540 a year, or 28% of the city's median household income. The Census median of $1,779 is lower because it includes long-term tenants on older leases.
Property tax in Sacramento
In tax rate area 003-000, the city's main Sacramento City Unified area, the 2026-27 rate is 1.138746%: the 1% base plus Los Rios College and Sacramento City Unified bonds. On a $470,552 home with the $7,000 homeowners' exemption, that is about $5,279 a year, or $440 a month. Other parts of the city in the Twin Rivers, Natomas or Elk Grove districts carry different rates. Direct charges such as sewer, lighting and special taxes are added to the bill. See the Sacramento County property tax guide.
Homeowners insurance in Sacramento
Sacramento grew up behind levees on the Sacramento and American rivers, and the Sacramento Area Flood Control Agency still lists levee projects in progress, including in the Natomas Basin. Flood insurance can matter as much as fire cover. Check the FEMA flood zone for any address and get quotes before you remove your inspection contingency. Our homeowners insurance guide and FAIR Plan guide explain the California market.
HOA dues and Mello-Roos in Sacramento
Many older central neighborhoods have no HOA, but ask for every home. Planned areas in Natomas and the Pocket often do: Park River Oak Estates in the Pocket budgets $320 a month per home for 2026. Newer subdivisions can also carry Mello-Roos or other special taxes on the tax bill; ask for the disclosure and read the Mello-Roos guide.
Everyday costs in Sacramento
Electricity from SMUD
The Sacramento Municipal Utility District says its average residential bill for 750 kWh a month was $149 as of June 1, 2026, against $290 for neighboring PG&E. On SMUD's standard Time-of-Day rate, summer power costs $0.1550 per kWh off-peak and $0.3765 at the 5 to 8 p.m. weekday peak, with a $27 monthly System Infrastructure Fixed Charge. Running the air conditioner hard on summer evenings is what pushes bills up.
Water, sewer and storm drainage from the city
The City of Sacramento's Department of Utilities bills water, wastewater and storm drainage. Its published residential figures show a flat water rate of $66.95 a month for a 6 to 9 room home and $31.65 for wastewater (6 to 7 rooms), a combined $98.60, with metered homes paying a $35.72 service charge plus $1.4587 per 100 cubic feet. Storm drainage adds a 1996 rate ($11.31 for 6 to 7 rooms) and a 2022 fee ($5.94 for lots from 1/10 to 1/4 acre). Rates have not changed since 2020, but the city has proposed water and sewer increases over five years, with a public hearing in December 2026 and a start date of July 1, 2027 if adopted. Natural gas comes from PG&E.
Groceries in Sacramento
MIT's calculator puts food at $4,428 a year for one adult and $12,960 for two adults with two children in Sacramento County. That works out to about $369 and $1,080 a month.
Transportation in Sacramento
Most residents drive: 64% of city workers drive alone, and the average commute is 25.3 minutes, according to the Census survey. MIT budgets $9,065 a year for transport for a single adult. SacRT's basic fare is $2.50 a ride, $7 for a day pass and $100 for a monthly pass, with half-price fares for seniors 62 and over.
Healthcare and child care in Sacramento
MIT puts medical costs at $3,846 a year for a single adult and $13,961 for a family of four with two working adults. Child care is the biggest line for families: $13,227 a year for one child and $28,792 for two.
Internet and phone in Sacramento
MIT budgets $1,477 a year for internet and mobile for one adult and $2,100 for two adults. Check which providers serve a specific address on the FCC National Broadband Map.
Taxes in Sacramento
The sales tax rate in the city of Sacramento is 8.75%: the 7.25% statewide base, 0.50% for the county's Measure A transportation tax and 1.00% for the city's Measure U. California income tax applies as everywhere in the state. When a home sells, the county charges documentary transfer tax of $0.55 per $500 of value, and the city of Sacramento adds its own tax of 0.275% of the price, about $1,294 on a $470,552 home. Who pays is set by the contract; see the California transfer tax guide.
Salary needed to live in Sacramento
MIT's Living Wage Calculator for Sacramento County (updated February 15, 2026) estimates the pre-tax income needed for basic costs, with no savings or eating out.
| Household | Living wage per hour | Annual income before tax | Housing budget |
|---|---|---|---|
| 1 adult, no children | $28.13 | $58,502 | $20,488 |
| 1 adult, 1 child | $48.15 | $100,158 | $26,431 |
| 2 adults (1 working), no children | $36.73 | $76,406 | $21,473 |
| 2 adults (both working), 1 child | $27.11 each | $112,776 | $26,431 |
| 2 adults (both working), 2 children | $33.63 each | $139,883 | $26,431 |
MIT's housing figure is based on rent. Buying is more: the $2,565 mortgage payment plus $440 in property tax on a typical home comes to about $36,060 a year before insurance. Lenders often want total housing costs under about a third of gross income, which points to a household income above $100,000 to buy at the typical value with 20% down. The city's own median is $87,321. California's minimum wage used by MIT is $16.90 an hour.
Sacramento cost of living vs nearby cities
Zillow's typical home value and observed rent are for September 2026; median household income is from the Census 2020-2024 survey.
| City | Zillow typical home value | Zillow observed rent | Median household income |
|---|---|---|---|
| Sacramento | $470,552 | $2,045 | $87,321 |
| Citrus Heights | $468,847 | $1,883 | $82,314 |
| West Sacramento | $520,898 | $2,263 | $93,188 |
| Rancho Cordova | $528,888 | $2,412 | $89,585 |
| Elk Grove | $624,643 | $2,688 | $125,924 |
| Roseville | $643,854 | $2,521 | $119,288 |
| Folsom | $754,898 | $2,667 | $139,804 |
| Davis | $827,457 | $2,394 | $90,045 |
Sacramento and Citrus Heights are the cheapest places to buy in the group, and Sacramento's rent is the second lowest. Folsom and Davis cost much more to buy. Electricity also differs: Roseville runs its own utility, and areas served by PG&E pay more than SMUD customers. Compare the suburbs on our Folsom and Roseville cost of living pages and the best suburbs of Sacramento guide.
Ways to lower your costs in Sacramento
- Shift power use away from 5 to 8 p.m. SMUD's summer peak rate is more than double its off-peak rate. Registered EV owners get 1.5 cents per kWh off all electricity used from midnight to 6 a.m.
- Apply for utility help if you qualify. The city's rate assistance program discounts water and sewer bills for income-qualified households, including those on SMUD's Energy Assistance Program.
- File the homeowners' exemption. The Sacramento County Assessor says it saves about $70 to $80 a year and can be filed online.
- Check your assessed value. With Zillow's typical value about 9% below its 2022 peak, some recent buyers may qualify for a temporary Prop 8 reduction. The Assessor's informal review period runs July 1 to December 31; formal appeals are due November 30.
- Use transit passes. SacRT's monthly pass is $100, or $50 for seniors and riders with disabilities; compare it with what you spend on fuel and parking.
- Compare neighborhoods by ZIP. Among the main city ZIPs, typical values range from about $349,000 in 95815 to $740,000 in 95819; see Sacramento ZIP codes.
For the full picture of living in the city, see is Sacramento a good place to live and relocating to Sacramento. Statewide comparisons are on the California cost of living guide.