You’ll pay high housing costs in Cambridge — average rent was $2,877/month (one-bed ~$2,612; two-bed ~$3,165; East Cambridge much higher). Expect utilities and internet around $284/month, groceries about $412/month per person, and transit $90/month for a CharliePass. Overall living costs run roughly 69% above the U.S. average, so you’d need roughly $104k–$126k household income to be comfortable. Keep going to see neighborhood, transport, and childcare trade-offs.

What Is the Cost of Living in Cambridge, MA in 2025?

Wondering how pricey Cambridge feels in 2025? You’ll see the overall cost of living runs about 69% above the U.S. average, and housing costs are the primary driver—housing sits roughly 321.4% higher than national norms. Average rent in February 2025 was $2,877 overall, with one-bedrooms near $2,612 and two-bedrooms about $3,165.

Neighborhoods matter: East Cambridge pushes rents higher (one-bed ~$3,614; two-bed ~$4,788), while Inman Square trends more affordable. To follow a 30% rent-to-income guideline for a $2,612/month one-bedroom, you’d need about $104,480 per year (roughly $8,707/month).

Don’t forget housing-related utilities: basic utilities for a ~915 sq ft unit average $158.55/month, plus phone/internet around $125.21, totaling about $283.76/month. Taken together, these figures show why housing costs dominate Cambridge’s living expense profile and why budgeting accurately is essential if you plan to live there.

Housing Costs and Rent Breakdown

You’ll see rents vary sharply by bedroom count: the February 2025 report lists an overall average of $2,877/month, a one-bedroom median of $2,612, and a two-bedroom median of $3,165. Neighborhood differences are pronounced — East Cambridge averages about $3,614 with two-bedrooms up to $4,788, making it one of the priciest areas. These figures underscore a large affordability gap (housing costs ~220% above the national average) and the very limited lower-cost options.

Rent by Bedroom Size

How much you’ll pay in Cambridge depends largely on bedroom count and neighborhood: citywide the February 2025 rent report shows an overall average of $2,877 per month, with one-bedrooms at a median of $2,612 and two-bedrooms at $3,165.

You’ll see consistent Rent gaps by size: one-bedrooms suit singles or couples, two-bedrooms add space and cost roughly $550 more on median.

Use these simple scenarios to picture trade-offs:

1. Studio/efficient — lowest monthly Rent, best for minimalists.
2. One-bedroom — median $2,612, common balance of cost and privacy.
3. Two-bedroom — median $3,165, useful for roommates or home office.
4. Larger units — premium Rent, often in high-demand corridors.

These figures keep choices practical and anchored to local data.

Neighborhood Rent Differences

Where in Cambridge you choose to live can change your monthly rent by hundreds — even over a thousand — dollars; East Cambridge, for example, averages about $3,614 for a one-bedroom and roughly $4,788 for a two-bedroom, well above the citywide medians of $2,612 (one-bed) and $3,165 (two-bed).

You’ll pay noticeably less in neighborhoods like Inman Square, which offers more affordable housing options, and nearby Somerville’s one-bedroom benchmark sits around $2,675, showing cross-neighborhood variation.

February 2025 data put the overall average rent at $2,877, so you should weigh location against budget and commute. Use these benchmarks to target neighborhoods that fit your rent ceiling, factoring amenities, transit access, and potential trade-offs in space or condition.

Neighborhoods: Most Expensive and Most Affordable Areas

Curious which Cambridge neighborhoods will hit your budget hardest? You’ll want to factor renters costs into neighborhood choice: citywide rent averaged $2,877/month in Feb 2025 (up 1.0% YOY). East Cambridge sits at the top end—typical units run about $3,614—so expect higher monthly outlays there than elsewhere.

Curious which Cambridge neighborhoods will strain your budget? City rent averages $2,877; East Cambridge peaks near $3,614.

To picture contrasts, imagine these neighborhood snapshots:

1. East Cambridge — newer developments, tech-adjacent, premium rents.
2. Inman Square — lower-priced pockets, more affordable options than East Cambridge.
3. One-bedrooms (city median) — roughly $2,612, good benchmark for single renters.
4. Two-bedrooms (city median) — roughly $3,165, useful if you’re splitting costs.

Use those figures to compare listings quickly: East Cambridge will often exceed the city median, while Inman Square tends to sit below it. That helps you target neighborhoods that match your budget without guessing.

Salary Required to Live Comfortably in Cambridge

Knowing neighborhood rents helps, but you also need to check whether your salary covers both rent and everyday costs. Using the 30% rule, affording a typical Cambridge rent of $2,612/month implies an annual salary near $104,480 (~$8,707/month or $52.24/hour). That’s a practical baseline, but it excludes other recurring costs. MIT’s living wage of $30.04/hour covers basics only, so you’ll want higher pay to include savings, debt, and emergencies.

Compare those figures to Cambridge’s median household salary of $126,469 (~$10,539/month or $60.80/hour): many households sit comfortably above the 30%-based threshold. Still, add typical annual line items — transportation (~$10,056), groceries (~$4,948), and healthcare (~$3,535) — and your effective required salary rises. If you rely on transit, factor in MBTA passes (~$90/month). Aim for a salary that covers rent plus these costs while leaving room for savings; for most single renters that means targeting pay closer to the median than the bare 30% estimate.

Transportation Costs and Public Transit Options

You’ll want to weigh public transit passes, driving and parking, and micromobility options when budgeting transportation in Cambridge.

A CharliePass unlimited monthly pass is $90 ($1,080/year) while single-ride fares range from $1.70 (local bus) to $2.40 (T) and $2.40–$13.25 (commuter rail), whereas owning a car typically costs about $10,056 per person annually (around $16,867 for a family of four). Consider the trade-offs in time, convenience, and fees like parking and maintenance versus lower fares and flexibility from biking or scooters.

Public Transit Passes

The MTBA Charlie Pass, which costs $90 a month ($1,080 a year), makes unlimited rail, bus, and Silver Line travel a clear budget play if you rely on the T regularly; with single-person annual transportation costs averaging about $10,056 (and roughly $16,867 for a family of four), switching from pay-per-ride—where fares run $2.40 for the T, $1.70 for local buses, and $2.40–$13.25 for commuter rail trips—toward monthly or annual unlimited options can cut your per-trip expense and simplify budgeting.

You’ll want to compare pass cost to typical public transit fares and your commute frequency. Consider:

1. Monthly pass versus 20–40 rides.
2. Commuter rail segments and peak pricing.
3. Family passes or multi-card discounts.
4. Occasional pay-per-ride for off days.

Pick the option that minimizes your yearly spend and billing complexity.

Driving and Parking

If you drive in Cambridge, factor in fuel, insurance, maintenance, parking fees, and depreciation—these add up to roughly the $10,056 annual transportation estimate for a single driver (about $16,867 for a family of four) and can easily exceed the $1,080 yearly cost of unlimited MTBA CharliePASS transit; with local gas around $2.95/gal, parking meters, residential permits, and occasional commuter-rail trips, compare your actual miles and parking needs against pass pricing to decide whether keeping a car saves money or just adds hassle. You should tally driving costs: fuel based on miles per gallon, insurance premiums, scheduled maintenance, unexpected repairs, and permit or meter fees. If your commute is short or transit-accessible, the CharliePASS often wins on cost and convenience.

Biking and Scooters

Coming from the cost and hassle of driving, many Cambridge residents opt for bikes and electric scooters to get around more cheaply and often faster for short trips. You’ll cut a big slice from the typical $10,056 annual transporation figure by relying on active mobility and occasional transit. The MBTA Charlie Pass at $90/month ($1,080/year) still beats frequent commuter-rail tickets.

1. Picture zipping between Harvard and MIT on a bike in 10–15 minutes.
2. Imagine grabbing a scooter for last-mile hops from T stations.
3. Think of replacing most $2.40 one-way T trips with pedal power.
4. Envision lower annual household costs versus $16,867 for a four-person car-centered family.

Use bikes/scooters plus passes to optimize cost and time.

Grocery, Dining, and Everyday Food Expenses

Curious how much you’ll spend on food in Cambridge? Your grocery bill for a single adult averages about $4,948 per year, while a family of four spends roughly $14,544 annually — useful anchors when you budget monthly. Expect an inexpensive restaurant meal to run about $21; a two-person mid-range dinner typically costs $110 before tips, so dining out adds up fast compared with cooking at home.

Use those annual grocery figures to estimate a monthly grocery allowance: about $412 for one person, $1,212 for a family of four. Factor occasional restaurant visits: one mid-range dinner per month for two adds $110; weekly inexpensive meals add roughly $84 monthly per person. These numbers are presented as baseline food costs within broader cost-of-living estimates; childcare and healthcare are tracked separately. Track receipts for a month to adjust the baseline to your habits, then set a clear monthly grocery and dining budget you can stick to.

Utilities, Internet, and Phone Bills

After you’ve set a realistic food budget, don’t forget to add utilities, internet, and phone costs — they average about $158.55 per month for a 915 sq ft apartment in Cambridge, and rise to roughly $283.76 once you include typical internet and cell charges (about $125.21 extra).

Remember utilities average $158.55/month for a 915 sq ft Cambridge apartment — about $283.76 with internet and phone.

You’ll find Cambridge utilities are below the national average ($206.44), but winter heating can push costs higher during cold, snowy months. Plan for seasonal spikes and track usage.

1. Visualize your baseline: $158.55 covers heat, water, electric for a 915 sq ft unit.
2. Add connectivity: $125.21 typically covers internet + phone, totaling $283.76.
3. Winter risk: expect higher heating use and bills for several months.
4. Savings actions: reduce consumption, negotiate plans, and shop providers for lower rates.

Use these figures to set a monthly utilities cap, monitor meter readings, and prioritize negotiations before renewal dates.

Childcare, Healthcare, and Insurance Costs

Expect childcare and healthcare to be among your largest non-housing expenses in Cambridge: MIT data shows childcare is a substantial cost for families, and employer-sponsored coverage averages about $3,535 per person or $9,311 for a family of four annually.

Check eligibility for Massachusetts health plans or MassHealth to reduce out-of-pocket medical spending.

Also factor in renter’s insurance and other policy premiums when budgeting total annual insurance costs.

Childcare Annual Cost

How much will childcare, healthcare, and insurance eat into your budget if you live in Cambridge? You should budget aggressively for childcare costs: MIT data shows annual childcare for one child is high compared with national averages, and families face substantial recurring expenses. Use these mental anchors:

1. Annual childcare for one child in Cambridge — expect a large share of your monthly budget.
2. Family childcare multiplies quickly — costs scale per child and per hour of care.
3. Compare childcare costs to the MIT living wage ($30.04/hr) to gauge affordability.
4. Factor available supports (MassHealth, state programs) that can reduce net outlays.

Plan childcare first when you model household expenses; it’s one of the biggest predictable annual costs.

Healthcare and Insurance

Childcare already takes a big bite out of family budgets, and healthcare plus insurance add another predictable, sizeable expense you’ll need to model. MIT data shows healthcare costs in Cambridge run about 20% above the national average: a single resident on an employer-sponsored plan pays roughly $3,535 annually, while families face about $9,311 per year for dependent coverage. You’ll typically rely on Massachusetts options like MassHealth or employer plans to offset higher local costs, but don’t assume full relief. Combine that $9,311 with childcare’s $22,806 annual charge for one child and you’re looking at a major recurring burden. In your budget, treat healthcare costs alongside housing and transport as fixed, essential line items you must plan for.

Fitness, Entertainment, and Lifestyle Expenses

Wondering what you’ll spend on staying active and entertained in Cambridge? You’ll budget fitness at roughly $100 monthly for a gym membership (about $1,200 yearly) and rely on free outdoor options and walkability to cut costs. Public transit can replace some outings: an MBTA CharliePass runs about $90/month for unlimited rides, which helps you access events across the city.

1. Gym membership: $100/month — regular classes, weights, amenities.
2. Outdoor/recreation: low-cost — parks, running routes, community events.
3. Dining outing: casual dinner for two ~$32; mid-range meal for two ~$110.
4. Entertainment: two movie tickets ≈ $23; theater varies by seating.

Plan monthly discretionary spending around $150–300 if you mix gym use, a couple of mid-range meals, and occasional shows. If you lean on transit and outdoor recreation, you can keep lifestyle expenses toward the lower end without sacrificing variety.

Taxes, Fees, and Other Local Financial Considerations

You can keep lifestyle costs down by using parks, transit, and mid-range dining, but it’s also important to account for taxes and local fees that affect your budget. Taxes in Cambridge follow Massachusetts rates: sales tax is 6.25% with no additional city tax, so plan purchases and recurring bills accordingly. If you own a home, expect property tax at $5.85 per $1,000 of assessed value—multiply your assessed value by 0.00585 to estimate annual cost. Car owners pay an excise tax of $25 per $1,000 of vehicle value, billed annually by the city. Healthcare runs about 20% above the national average; factor higher premiums or out‑of‑pocket costs, though MassHealth and other plans may reduce your share. There are no extra local city or county taxes beyond state taxes for residents, which simplifies forecasting. Use these concrete rates to model monthly and annual expenses and adjust savings or spending to maintain a balanced budget.

Frequently Asked Questions

What Is the Average Cost of Living in Cambridge?

The average cost of living in Cambridge is high: you’d need roughly $8,700 per month (about $104,480/year) to follow the 30% rent guideline, with typical rents near $2,900 and higher housing-driven expenses.

How Much Does It Cost to Live in Cambridge?

Think of Boston’s high cost as a familiar cityscape: you’ll need roughly $10,000/month gross to comfortably cover Cambridge rent (avg $2,877), utilities and basics, or about $120,000/year for affordable living.

What Is the Average Cost of Living in Cambridge, MA?

The average cost of living in Cambridge, MA is high: expect overall index ~144.7, average rent about $2,877/month (one-bed ~$2,612), and you’ll need roughly $104,480/year income to comfortably afford typical rents.

Is Cambridge a High Cost of Living?

Yes — you’ll pay considerably more to live in Cambridge; housing drives costs (median rent about $3,474), overall index 144.7, and utilities plus transportation boost expenses, so plan for roughly $10,000/month gross income.

Conclusion

Living in Cambridge in 2025 means higher-than-average costs: expect median rent around $3,200 for a one-bedroom. You’ll need roughly $85,000–$95,000 annually to live comfortably if you’re single, more with dependents. Factor in $150–$200 monthly transit, $200–$300 utilities, and steep childcare and healthcare. With data-driven planning—budgeting for rent, taxes, and a 10–15% emergency fund—you’ll manage Cambridge’s premium lifestyle without surprises.