How much do you need to make to live in Chicago? (2026)

Key takeaway: To keep rent at 30% of your pre-tax income in Chicago, plan on about $50,000 a year sharing a two-bedroom, $83,000 for a median one-bedroom, or $108,000 for a newer downtown one-bedroom.

There isn’t one salary that works for everyone in Chicago, and that’s the good news. The city has housing at a wide range of prices, so the income you need depends mostly on how and where you want to live. Below is the math for three common setups, the other costs to plan for, and the benchmarks people quote most often.

Income needed by housing choice

A common budgeting guideline is to keep rent at or below 30% of your gross income. Here’s what that means at three Chicago price points.

Housing setupMonthly rentYearly income neededHourly, full time
Sharing a two-bedroom (your half)$1,258$50,320$24.19
Median one-bedroom$2,079$83,160$39.98
Newer downtown one-bedroomfrom $2,700from $108,000from $51.92

Source: shared two-bedroom is half of Rentometer’s $2,516 average (Rentometer, May 2026); median one-bedroom from Zillow, via Axios, September 2026; downtown one-bedrooms in River North, Streeterville and the Loop often top $2,700 per RentCafe, via Rentler. Income figures are our calculation: rent times 12, divided by 0.30. Hourly assumes 2,080 hours a year.

Other monthly costs to plan for

CostTypical amountNotes
CTA 30-day pass$75Unlimited CTA and Pace rides
Car insurance, full coverageabout $282 a month$3,386 a year on average
Car insurance, liability onlyabout $85 a month$1,023 a year on average
Groceries, average householdabout $553 a month$6,636 a year, 2022 to 2023
Eating out, average householdabout $355 a month$4,258 a year, 2022 to 2023
Infant daycare, quality center$1,800 to $2,900 a monthOnly if you need it

Source: CTA fare chart; car insurance from NerdWallet, September 2026; groceries and dining from the Bureau of Labor Statistics Consumer Expenditure Survey for the Chicago metro; daycare from Wonderschool. For electricity, gas and water, see our utility bills guide.

The benchmarks people quote

BenchmarkYearly amount
Full-time pay at Chicago’s $17.05 minimum wage$35,464
MIT living wage, single adult, Chicago metro$53,664
Median earnings, Chicago metro$73,979

Source: ABC7 Chicago for the minimum wage, July 1, 2026; living wage and median earnings from SmartAsset’s analysis of MIT’s Living Wage Calculator, via Fox 32, October 2026.

MIT’s living wage covers a basic but adequate budget. If you want room for travel, dining out and savings, aim higher, which the housing table above helps you size.

Ways to make the same salary go further

  • Ride the CTA instead of owning a car. A $75 monthly pass costs less than a third of the average full-coverage insurance bill, before gas, parking or a city sticker.
  • Share a bigger place. Splitting a two-bedroom cuts the income you need by about $33,000 compared with renting a median one-bedroom alone.
  • Shop neighborhoods. Average rents range from about $1,525 to $3,200 depending on the ZIP code. See our rent by ZIP guide.
  • Sign in the off-season. October through February is when landlords are most likely to offer a free month or waive fees, according to AptAmigo.
  • Count the tax advantage. Chicago has no city income tax, unlike New York City.

If you want the luxury version

Chicago does high-end living well, and it often costs less than the same lifestyle in New York, Los Angeles, San Francisco or Boston, where average rents run closer to $3,000 (Axios). A one-bedroom in a newer building in River North, Streeterville or the Loop often starts around $2,700. At the 30% guideline, that’s roughly $108,000 a year. Knowing that number up front is the whole point: pick the building you want and plan for it.

More costs to plan for: move-in costs, renters insurance, internet and phone, health insurance and owning a dog. To compare neighborhoods, see our Chicago neighborhood cost comparison.

Sources

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