Cost of Living in Montgomery, AL
Population 198,440 · Alabama · Data vintage 2023
(100 = US avg)
Montgomery lands reasonably close to national benchmarks on most cost indicators, with a median home value of $149,000 — 51% below the US figure. That makes it a useful reference point for comparing with more extreme markets in Alabama. Unemployment has stayed elevated relative to the national figure — 6.5% as of the most recent ACS release — which shows up in household-income and poverty figures as well.
Cost Overview
Scale: 100 = US national average. Green < 90, Red > 110.
About the Cost of Living in Montgomery
The median home value in Montgomery is $148,500 — 51% below the national median of $305,000. Median rent runs $1,059/month, 19% lower than the national median of $1,314/month. The median household income of $55,687/year is 25% lower than the US median of $74,580. The local unemployment rate is 6.5%, above the national average of 4.8%. Alabama's top state income tax rate is 5.0% and the combined sales tax is 9.2%. Overall, Montgomery has a cost of living index of 61 versus the US average of 100, meaning it is 39% less expensive.
🏠 Housing
HUD Fair Market Rents by Bedroom
💰 Estimated Monthly Budget
Estimates based on median data and national averages. Actual costs vary.
🛒 Food & Groceries
National BLS average prices (2023). Local prices may vary.
🚗 Transportation
Commute Mode
⚡ Utilities
📋 Taxes
💼 Income & Employment
🎓 Education
👥 Demographics
💨 Air Quality
EPA AQS 2023 — county-level monitoring data
Frequently Asked Questions
What is the cost of living in Montgomery, AL?
Montgomery has a cost index of 61 (100 = national average). It is 39% below the national average.
What is average rent in Montgomery, AL?
The median gross rent in Montgomery is $1,059 per month based on 2023 Census data.
What is the average home price in Montgomery?
The median home value in Montgomery is $148,500 according to Zillow and Census data.
What is the median income in Montgomery?
The median household income in Montgomery is $55,687 per year (2023 ACS 5-year estimates).
What is the sales tax in Montgomery, AL?
The combined state and local sales tax rate in Montgomery is 9.2%. The Alabama state income tax top rate is 5.0%.
Is Montgomery, AL affordable?
Yes, Montgomery is generally considered affordable, with a cost of living index of 61 — about 39% below the US national average of 100.
Montgomery at a Glance
- Population
- 198,440
- Median Income
- $55,687
- Home Value
- $148,500
- Median Rent
- $1,059/mo
- Unemployment
- 6.5%
- Sales Tax
- 9.2%
Nearby Cities
Compare Montgomery
Explore county-level cost of living data
Alabama Rankings
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