Montgomery, AL, US
Civil Rights history, Maxwell AFB, and some of the cheapest housing in America.
Below Average vs US avg (100)
Affordable
Household income
Job market health
Montgomery vs US Average
Taxes
- State Income Tax: 5.0%
- Sales Tax: 10.0%
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
Cost of Living
Montgomery's cost of living index is 90.5 (US average = 100).
| Category | Montgomery | National Average | Difference |
|---|---|---|---|
| Overall | 90.5 | 100 | -9.5% |
| Housing | 78.5 | 100 | -21.5% |
Data source: Council for Community and Economic Research (C2ER), 2026
Housing Market
| Metric | Value |
|---|---|
| Median Home Price | $145,000 |
| Median Rent (1BR) | $1000/mo |
| Median Rent (2BR) | $1,250/mo |
| Price per Sq Ft | $96 |
Data source: Zillow Research, May 2026
True Cost of Home Ownership
Utilities
Estimated monthly utility costs for a typical household in Montgomery:
| Utility | Estimated Monthly Cost | Notes |
|---|---|---|
| Electricity | $110 | Based on ~900 kWh/month typical US household usage |
| Heating (Gas/Oil) | $227 | Estimated based on local climate. Gas or electric |
| Water | $45 | Includes sewer |
| Internet (100+ Mbps) | $65 | Broadband average |
| Garbage / Trash | $25 | Private service |
| Total Utilities | $472 | Monthly estimate (including heating) |
Data sources: U.S. Energy Information Administration (EIA) 2024, EPA/AWWA water rate surveys, BroadbandNow
Best Neighborhoods
Downtown Montgomery
The heart of the city with restaurants, shops, and entertainment. Average rent: $1,200/mo.
Montgomery Heights
Trendy area with local businesses and a mix of historic and modern housing. Average rent: $1,100/mo.
East Montgomery
Up-and-coming neighborhood with new developments and young professionals. Average rent: $900/mo.
West Montgomery
Family-friendly area with parks and good schools. Average rent: $950/mo.
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: Good
- Climate: 218 year (Good)
- Quality of Life: Good
Climate
Montgomery has a varied climate with distinct seasons.
| Month | Avg High | Avg Low | Rainfall |
|---|---|---|---|
| January | 56°F | 36°F | 2.5" |
| April | 77°F | 51°F | 2.8" |
| July | 92°F | 67°F | 1.5" |
| October | 72°F | 54°F | 2.2" |
Taxes
- State Income Tax: 5%
- Sales Tax: 10%
- Property Tax: ~0.43% of assessed value
Economy & Jobs
Major industries include technology, healthcare, education, and manufacturing. The unemployment rate is 3.8%.
Important Disclaimer: All data on this page is for informational purposes only and does not constitute financial, legal, tax, or real estate advice. URCity and Northshore Press are not financial advisors, tax professionals, or real estate agents. Always consult qualified professionals before making relocation or financial decisions.
Frequently Asked Questions
What is the cost of living in Montgomery, AL, US?
The cost of living index in Montgomery is 90.5, which is Lower the US national average of 100.
How much does it cost to buy a home in Montgomery?
The median home price in Montgomery is $145,000. The housing index is 78.5.
What is the average rent for a 1-bedroom apartment?
The average rent for a 1-bedroom apartment in Montgomery is approximately $1000/mo.
Does Montgomery, AL have income tax?
Montgomery is in AL, which has an income tax rate of 5%.
What is the climate like in Montgomery?
Montgomery enjoys approximately 218 sunny days per year. Summer highs reach around <no value>°F,92°F, while winter lows can drop to around <no value>°F.36°F.
Data Sources
- Cost of Living: Council for Community and Economic Research (C2ER), 2026
- Housing Data: Zillow Research, 2026
- Income & Employment: US Census Bureau American Community Survey, 2024
Data last updated: July 6, 2026. Data may not reflect current market conditions. Always verify with local sources before making relocation decisions.