| Index | Montgomery | Alabama | National |
| Cost of living | 89 | 89 | 100 |
| Groceries | 94 | 96 | 100 |
| Health care | 94 | 95 | 100 |
| Housing | 75 | 74 | 100 |
| Transportation | 98 | 95 | 100 |
| Utilities | 96 | 97 | 100 |
| Lifestyle & Entertainment | 96 | 94 | 100 |
| Household Items | 94 | 96 | 100 |
| Education & Childcare | 92 | 93 | 100 |
The cost of living in Montgomery affects the quality of life one can afford in this new location. It allows people to assess whether they can maintain their preferred lifestyle, including housing, leisure activities and dining options. Your total monthly expenditures can varry depending on the area, as well as many other factors. The cost of living in Montgomery is 89, which is 11% lower than the national average. Knowledge of the cost of living can help individuals make informed decisions about retirement savings, investments, and financial goals.
Nobody knows their city better than the people who actually live there. So, we asked 17 local residents how they would rate the cost of living in Montgomery and this is how they responded. 59% of people said that the cost of living was affordable, with prices decreasing, while 41% of people said that the cost of living was very expensive and prices continue to rise.
Is Montgomery an affordable place to live? That's a valid question to ask when you're thinking about moving to a new city. After all, how much it costs to live somewhere can be a huge factor in your decision. Affordability can be broken down into 3 common categories. The cost of living index (we talked about it earlier), housing expenses and income levels all play a big role in figuring out if a place is affordable. For instance, in Montgomery, the median home price is 34.2% lower than what most folks pay across the country, and monthly rent prices are 3.6% lower than the usual rates. Income levels in Montgomery come in at $75,262, which is 7.5% lower than the national average.
Housing: Elevated demand for housing within coveted locales has the propensity to escalate both property values and rental rates, thereby serving as a primary catalyst for an augmented cost of living. Conversely, areas witnessing diminished housing demand, particularly within less desirable environs, often experience an inversely proportional effect, leading to price reductions and subsequently contributing to a more modest cost of living. In Montgomery, the housing index is 25% lower than the national average.
Transportation: When public transportation options are limited or non-existent, residents frequently resort to vehicle ownership, which can significantly contribute to the overall cost of living. Monthly financial obligations encompass fuel, insurance, regular maintenance and potentially lease or financing expenses. In Montgomery, the transportation index is 1.7% lower than the national average.
Subsidies: Certain cities or states may institute government subsidies or assistance programs designed to alleviate the financial burdens associated with the cost of living for their residents. These programs encompass a variety of support mechanisms, including Medicare, Medicaid, housing subsidies, low-income home energy assistance programs, school lunch programs, supplemental nutrition assistance programs, student loans, electric vehicle tax credits, affordable care act subsidies and farm subsidies. Areas that provide fewer subsidies may see an uptick in their overall cost of living.
The cost of living estimates displayed for Montgomery are modeled using a U.S. average baseline of 100, helping provide a useful comparison of local living expenses. Housing calculations include U.S. Census home price and rental data, while all other values are AI-assisted estimates based on regional cost patterns, climate, transportation, and everyday spending expectations. These values are intended for directional comparisons across cities.
| Cost of living index | |
| Groceries index | |
| Health care index | |
| Housing index | |
| Transportation index | |
| Utilities index | |
| Lifestyle index | |
| Household index | |
| Educare index |
| Median Income | Per Year | Per Month | Max Budget (28% DTI) | Max Budget (36% DTI) |
| Owners | $96,351 | $8,029 | $2,248 | $2,891 |
| Renters | $48,214 | $4,018 | $1,125 | $1,447 |
| State | General Sales Tax | With Max Surtax |
| Alabama | 4% | 13.5% |
| State | Income Tax (Low) | Income Tax (High) |
| Alabama | 2% | 5% |
| City | Population | Cost of Living Index | National Avg. |
| Elmore, AL | 1,380 | 83 | 16.9% |
| Wetumpka, AL | 8,530 | 91 | 9.0% |
| Coosada, AL | 970 | 92 | 7.7% |
| Pine Level, AL | 3,758 | 93 | 7.0% |
| Millbrook, AL | 16,670 | 94 | 6.3% |
| Montgomery, AL | 204,291 | 89 | 10.9% |
| City | Population | Cost of Living Index | National Avg. |
| Huntington Beach, CA | 204,313 | 195 | 95.1% |
| Augusta, GA | 204,183 | 92 | 8.1% |
| Grand Rapids, MI | 204,117 | 96 | 4.0% |
| Glendale, CA | 204,037 | 193 | 93.1% |
| Yonkers, NY | 204,945 | 142 | 41.6% |
| Montgomery, AL | 204,291 | 89 | 10.9% |
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