5 Affordable Neighborhoods for Renters to Keep in Mind in Ann Arbor, MI

If you’re looking for a rental apartment in a city that blends culture, education and natural beauty, Ann Arbor, MI, is a great choice. Home to the University of Michigan, Ann Arbor offers more than just a college-town feel. From locally owned cafes to diverse dining, a strong arts scene, and plenty of parks and trails, the city stands out for its quality of life. But, that high quality often comes at a cost.

The overall cost of living in Ann Arbor is 4% higher than the Michigan average — and 4% higher than the national average. As such, renters looking to live here without breaking the bank may find it tough to navigate the local market. That’s why knowing the best affordable neighborhoods in Ann Arbor can make all the difference. Whether you’re a student, a young professional, or just want a quieter place to live with lower rent, these five budget-friendly neighborhoods are worth checking out:

• Pioneer Nature
• Germantown
• Westover
• Old West Side
• Arbor Hills

Pioneer Nature

Average rent as of April 2025: $1,806

Located in the southern part of the city near Pioneer High School, the Pioneer Nature area offers a peaceful and affordable rental option for those wanting quick access to nature without leaving Ann Arbor. That’s because renters here enjoy proximity to the large, wooded Pioneer Woods and the adjacent Nature Area, which provides a nice escape for hiking, bird-watching and relaxation.

Yet, despite the serene surroundings, you’re still just a short drive from downtown. Plus, the area’s apartment communities often include on-site parking, outdoor spaces and laundry amenities, making this one of the best affordable neighborhoods for renters who enjoy quiet living with outdoor perks.

Germantown

Average rent as of April 2025: $1,821

For renters looking to stay closer to downtown without paying downtown prices, Germantown is a budget-friendly neighborhood that strikes a great balance. With an average rent below $1,850, it’s one of the best affordable neighborhoods for access to Ann Arbor’s city core.

This neighborhood is also walkable with a mix of historic homes, converted rentals and small apartment buildings. And, you’ll be within walking distance of shops, coffee spots and cultural destinations, like the Michigan Theater. Overall, Germantown’s charm lies in its character and convenience, offering renters a cozy, connected lifestyle without the high cost.

Westover

Average rent as of April 2025: $1,845

Westover is another solid pick when searching for budget-friendly neighborhoods in Ann Arbor. Located west of downtown, this area is home to a mix of rental properties ranging from low-rise apartment complexes to duplexes and single-family rentals. Accordingly, Westover appeals to renters who want a more residential feel without moving too far from city amenities.

There are also several parks in the vicinity, including Dolph Nature Area and Lakewood Nature Area, offering plenty of recreational opportunities. With public transit nearby and grocery stores just a short drive away, Westover makes daily errands easy while keeping rent costs more manageable.

Old West Side

Average rent as of April 2025: $1,934

Old West Side offers historic charm and a central location, all while staying within a reasonable rental range. Known for its character homes and walkable streets, this neighborhood is a favorite among renters who appreciate architecture and a sense of community. In fact, many of the homes have been converted into multi-unit rentals and thus offer layouts that stand out from standard apartments.

The area is also close to downtown with local cafes, shops and parks — like Wurster Park — nearby. It’s one of the best affordable neighborhoods for those who want to live close to the city’s core without paying top dollar.

Arbor Hills

Average rent as of April 2025: $2,034

Located on the east side of Ann Arbor, Arbor Hills is a residential neighborhood that offers a quieter, more suburban vibe with easy access to shopping and highways. While its average rent is just over $2,000, it’s still considered a budget-friendly neighborhood for renters looking for more space or newer apartment communities.

Notably, Arbor Hills is close to Washtenaw Avenue, which offers a wide variety of retail stores, grocery options and restaurants. With larger apartments and townhomes available, this neighborhood is a smart pick for renters looking for value in terms of space and amenities.

Whether you’re after campus convenience; access to nature trails; or a laidback, residential feel, Ann Arbor, MI, has a neighborhood that fits your lifestyle — and your budget. These five affordable neighborhoods are ideal for renters looking to make the most of city living without overspending.

If you’re ready to start your apartment search, explore these affordable neighborhoods in Ann Arbor, MI, to find a rental that fits both your lifestyle and your budget.