Montgomery, AL — Cost of Living, Housing & Relocation Guide [2026]
COL: 90.5 200,603

Montgomery, AL

Civil Rights history, Maxwell AFB, and some of the cheapest housing in America.

Updated June 29, 2026
Cost of Living 90.5

Below Average vs US avg (100)

Housing Index 78.5

Affordable

Median Income $44,000

Household income

Unemployment 3.8%

Job market health

Montgomery vs National Average

Overall COL
Montgomery: 90.5
National: 100
Housing
Montgomery: 78.5
National: 100
State Income Tax
Montgomery: 5%
US Avg: ~5%

Taxes

  • State Income: 5%
  • Sales Tax: 10%

Economy & Jobs

  • Median Income: $44,000
  • Unemployment: 3.8%
  • Population: 200,603

Climate

  • Sunny Days: 218/year
  • Summer High: 92°F
  • Winter Low: 36°F

Housing

  • Median Home: $145,000
  • 1BR Rent: $1000/mo

Overview

Montgomery is a city in AL with a population of 200,603. Civil Rights history, Maxwell AFB, and some of the cheapest housing in America.

Cost of Living

Montgomery’s cost of living index is 90.5 (US average = 100).

CategoryMontgomeryNational AverageDifference
Overall90.5100-9.5%
Housing78.5100-21.5%
Utilities98.5100-1.5%
Groceries96.8100-3.2%
Transportation104.2100+4.2%
Healthcare100.5100+0.5%

Data source: Council for Community and Economic Research (C2ER), 2026

Housing Market

MetricValue
Median Home Price$145,000
Median Rent (1BR)$1,000/month
Median Rent (2BR)$1,250/month
Price per Sq Ft$96
Year-over-Year Change-1.0%

Data source: Zillow Research, May 2026

True Cost of Home Ownership

True Cost of Home Ownership

See what you'll really pay over 30 years

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$90,000 down
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Best Neighborhoods

Downtown Montgomery

The heart of the city with restaurants, shops, and entertainment. Average rent: $1,200/month.

Montgomery Heights

Trendy area with local businesses and a mix of historic and modern housing. Average rent: $1,100/month.

East Montgomery

Up-and-coming neighborhood with new developments and young professionals. Average rent: $900/month.

West Montgomery

Family-friendly area with parks and good schools. Average rent: $950/month.

Remote Work Score

Montgomery scores 124/100 for remote work readiness:

  • Internet Speed: Average 200 Mbps (Good)
  • Coworking Spaces: 15+ locations (Good)
  • Cost of Living: Moderate (Good)
  • Climate: 218 sunny days/year (Good)
  • Quality of Life: High (Good)

Climate

Montgomery has a varied climate with distinct seasons.

MonthAvg HighAvg LowRainfall
January56°F36°F2.5"
April77°F51°F2.8"
July92°F67°F1.5"
October72°F54°F2.2"

Taxes

  • State Income Tax: 5.0%
  • Sales Tax: 10.0%
  • Property Tax: ~0.8% of assessed value

Economy

Major industries include technology, healthcare, education, and manufacturing. The unemployment rate is 3.8%.

FAQ

Is montgomery-al a good place to live?

montgomery-al offers a strong combination of affordability, job opportunities, and quality of life. Use our cost of living calculator and relocation guides to see if it fits your budget and lifestyle.

What is the cost of living in montgomery-al?

The cost of living in montgomery-al varies by neighborhood and lifestyle. Check our detailed cost breakdown above for specific numbers on housing, groceries, utilities, and transportation.

How much do I need to earn to live comfortably in montgomery-al?

Use our Salary Equivalence Calculator to find out how much you need to earn in montgomery-al to maintain your current standard of living.

Data Sources

  • Cost of living: Council for Community and Economic Research (C2ER)
  • Housing data: Zillow Research
  • Demographics: US Census Bureau
  • Climate: National Oceanic and Atmospheric Administration (NOAA)
  • Taxes: Tax Foundation

Last updated: June 29, 2026

Disclaimer: All data on this page is provided for informational purposes only and does not constitute financial, legal, tax, or real estate advice. Cost of living indices, housing prices, tax rates, and other figures are estimates based on publicly available data and may not reflect current market conditions. URCity and Northshore Press are not financial advisors, tax professionals, or real estate agents. Always consult qualified professionals before making relocation or financial decisions.

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