Cost of Living in Montgomery, AL
Montgomery, AL — prices, rents and what jobs really pay here after taxes.
Salary comparison calculator
What would you need to earn in Montgomery, AL to keep the same lifestyle — after taxes — as in another city?
How expensive is Montgomery, AL?
With a price level of 89.7 (U.S. average = 100), Montgomery, AL is one of the most affordable places in the country. In detail, housing costs are 36% below average; everyday goods are 4% below average; utilities are 15% below average; other services such as healthcare and dining are 3% below average. The biggest difference from the national average is in housing.
Prices in Montgomery, AL vs. the U.S. average
| Category | Index (U.S. = 100) | Difference |
|---|---|---|
| All items | 89.7 | −10.3% |
| Housing | 64.3 | −35.7% |
| Goods | 96.4 | −3.6% |
| Utilities | 84.9 | −15.1% |
| Other services | 96.7 | −3.3% |
Source: BEA Regional Price Parities, 2024.
Rent in Montgomery, AL
| Unit | Monthly rent | Income needed (30% rule) |
|---|---|---|
| Studio | $860 | $34,400/yr |
| 1 bedroom | $870 | $34,800/yr |
| 2 bedrooms | $1,016 | $40,640/yr |
| 3 bedrooms | $1,304 | $52,160/yr |
| 4 bedrooms | $1,537 | $61,480/yr |
HUD Fair Market Rents, FY2026, population-weighted across the metro's counties.
Salary needed to live in Montgomery, AL
To keep the same standard of living as in an average-priced U.S. city, you would need to earn roughly:
| Salary in an average U.S. city | Equivalent in Montgomery, AL | Take-home here |
|---|---|---|
| $40,000 | $35,900 | $29,496 |
| $60,000 | $53,800 | $42,983 |
| $80,000 | $71,700 | $55,951 |
| $100,000 | $89,700 | $67,714 |
| $150,000 | $134,500 | $96,737 |
Scaled by the BEA price level (pre-tax). Take-home: single filer, Alabama 2026 taxes. For a tax-aware comparison with a specific city, use the calculator above.
A monthly budget on the median wage
A single worker earning Montgomery, AL's median wage of $44,950 takes home about $3,026 a month. A typical one-bedroom rents for $870, which is 29% of take-home pay — within the 30% guideline that financial planners suggest. That leaves about $2,156 a month for everything else.
Take-home pay in Montgomery, AL
- Federal income tax$3,214
- Social Security (6.2%)$2,787
- Medicare (1.45%)$652
- Alabama income tax$1,983
- Take-home pay$36,315
Marginal rate: 12% federal + 5.00% state
Highest-paying jobs in Montgomery, AL
| Job | Median salary | Take-home | Real value* |
|---|---|---|---|
| Registered Nurse | $79,570 | $61,094 | $68,123 |
| Accountant and Auditor | $75,040 | $58,134 | $64,822 |
| Heavy and Tractor-Trailer Truck Driver | $54,860 | $43,782 | $48,819 |
| Miscellaneous Assembler and Fabricator | $45,380 | $36,639 | $40,854 |
| Secretaries and Administrative Assistants, Except Legal, Medical, and Executive | $40,260 | $32,781 | $36,552 |
| Laborers and Freight, Stock, and Material Movers, Hand | $37,370 | $30,603 | $34,124 |
| Customer Service Representative | $36,960 | $30,294 | $33,780 |
| Stocker and Order Filler | $34,370 | $28,343 | $31,604 |
| Retail Salesperson | $29,650 | $24,786 | $27,638 |
| Cashier | $28,330 | $23,788 | $26,525 |
| Fast Food and Counter Worker | $22,960 | $19,635 | $21,894 |
*In U.S.-average dollars after adjusting for local prices.
Pay and living costs in Alabama cities
Half of Alabama’s 2,113,660 workers earn less than $45,670 a year and half earn more; the middle 50% earn $32,050–$66,790 (BLS, May 2025). Prices vary a lot within the state: Huntsville, AL stretches a paycheck furthest, while Daphne, AL is the costliest.
| Metro area | Median pay | Price level | 1-BR rent | Rent share | Left after rent / mo | Buying power* |
|---|---|---|---|---|---|---|
| Birmingham, AL | $47,770 | 91.6 | $1,115 | 35% | $2,088 | $41,945 |
| Huntsville, AL | $51,740 | 93.1 | $1,136 | 33% | $2,317 | $44,515 |
| Mobile, AL | $47,000 | 88.1 | $919 | 29% | $2,236 | $42,974 |
| Montgomery, AL | $44,950 | 89.7 | $870 | 29% | $2,156 | $40,493 |
| Columbus, GA | $43,540 | 89.3 | $936 | 32% | $2,002 | $39,478 |
| Tuscaloosa, AL | $45,220 | 87.7 | $943 | 31% | $2,100 | $41,630 |
| Daphne, AL | $38,520 | 94.7 | $1,200 | 46% | $1,422 | $33,235 |
| Auburn, AL | $39,070 | 87.9 | $1,045 | 39% | $1,612 | $36,260 |
| Decatur, AL | $46,280 | 87.2 | $776 | 25% | $2,334 | $42,789 |
| Dothan, AL | $38,170 | 83.8 | $751 | 29% | $1,850 | $37,224 |
| Florence, AL | $39,740 | 84.8 | $775 | 29% | $1,924 | $38,187 |
| Anniston, AL | $42,680 | 85.9 | $757 | 26% | $2,127 | $40,262 |
| Gadsden, AL | $36,660 | 85.7 | $792 | 32% | $1,714 | $35,105 |
*Yearly take-home pay (on each metro’s median wage, single filer) in U.S.-average dollars. Price level: BEA RPP 2024 (U.S. = 100). Rent: HUD FY2026 one-bedroom fair market rent.
Montgomery, AL vs. similar-size cities
| Metro area | Price level | 1-BR rent | Median wage | Jobs |
|---|---|---|---|---|
| Montgomery, AL | 89.7 | $870 | $44,950 | 165,550 |
| Spartanburg, SC | 91.1 | $1,061 | $47,650 | 165,150 |
| Peoria, IL | 91.2 | $818 | $49,590 | 166,020 |
| Lubbock, TX | 91.3 | $974 | $42,130 | 166,780 |
| Beaumont, TX | 90.0 | $898 | $48,630 | 163,220 |
| Canton, OH | 89.4 | $846 | $45,810 | 163,080 |
| Shreveport, LA | 84.8 | $982 | $44,820 | 162,750 |
Frequently asked questions
Is Montgomery, AL expensive to live in?
According to the Bureau of Economic Analysis, overall prices in the Montgomery, AL metro area are 89.7% of the U.S. average, with housing at 64.3%. It is the #294 most expensive of 387 metro areas we track.
What salary do you need to live in Montgomery, AL?
To match the buying power of a $60,000 salary in an average-priced U.S. city you would need about $53,809 in Montgomery, AL (before tax differences). The median wage across all jobs here is $44,950.
Can you afford Montgomery, AL on the median wage?
A single worker on the $44,950 median wage takes home about $3,026 a month after 2026 taxes; a one-bedroom at $870 would take 29% of that.
How much is rent in Montgomery, AL?
HUD’s FY2026 fair market rents for Montgomery, AL are $860 for a studio, $870 for one bedroom, $1,016 for two bedrooms and $1,304 for three bedrooms, including utilities.
Top salaries by field in Montgomery, AL
Business and Financial Operations Occupations
- Accountant and Auditor — $75,040
Healthcare Practitioners and Technical Occupations
- Registered Nurse — $79,570
Food Preparation and Serving Related Occupations
- Fast Food and Counter Worker — $22,960
Sales and Related Occupations
- Retail Salesperson — $29,650
- Cashier — $28,330
Office and Administrative Support Occupations
- Secretaries and Administrative Assistants, Except Legal, Medical, and Executive — $40,260
- Customer Service Representative — $36,960
Production Occupations
- Miscellaneous Assembler and Fabricator — $45,380
Transportation and Material Moving Occupations
- Heavy and Tractor-Trailer Truck Driver — $54,860
- Laborers and Freight, Stock, and Material Movers, Hand — $37,370
- Stocker and Order Filler — $34,370