Cost of Living Comparison for Montgomery, AL
Updated 2026 · Local data pre-filled
Montgomery's cost of living index is 82 — 18% cheaper than the national average. This factors in housing, groceries, utilities, transportation, and healthcare. Use this calculator to see how your purchasing power would change if you moved to another city.
✓ Calculator below is pre-filled with Montgomery local data
How Montgomery Compares to the National Average
Understanding how Montgomery stacks up helps you calibrate your financial planning.
| Metric | Montgomery, AL | US Average | Difference |
|---|---|---|---|
| Median Home Price | $175,000 | $420,800 | -58.4% |
| Median Monthly Rent | $850 | $1,713 | -50.4% |
| Median Household Income | $48,600 | $74,580 | -34.8% |
| Property Tax Rate | 0.41% | 1.10% | -62.7% |
| Cost of Living Index | 82 | 100 | -18.0% |
Sources: U.S. Census Bureau, BLS, Zillow, NAR (2024–2025). Green = favorable for residents; red = less favorable.
Montgomery Financial Snapshot
- Population (Metro)
- 380,000
- Unemployment
- 4.6%
- Avg Commute
- 23 min
- Median Age
- 34.5
- Price-to-Rent Ratio
- 17.2x
- Annual Property Tax
- $718
Cost of Living Comparison in Other Alabama Cities
Frequently Asked Questions — Montgomery
What is the median home price in Montgomery, AL?
The median home price in Montgomery is $175,000 as of 2025–2026. This is below the national median of $420,800.
What is the average rent in Montgomery?
Median monthly rent in Montgomery is $850. That works out to $10,200/year, or 21% of the median household income — within the commonly recommended 30% of income guideline.
Is Montgomery affordable?
Montgomery's cost of living index is 82 vs. the national average of 100. With a median household income of $48,600/year and a median home price of $175,000, the price-to-income ratio is 3.6x. Montgomery remains relatively affordable compared to many US metros.
What is the property tax rate in Montgomery?
The effective property tax rate in Montgomery is 0.41% of assessed value. On the median home of $175,000, that's roughly $718/year ($60/month).