Overall 14%
Goods & Services 11%
Housing 30%
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The cost of living index is based on a national average of 100. For example, if the cost of living is 90, then it is 10% lower than average. If the cost of living is 110, then it is 10% higher than average. The breakdown for each index is as follows: goods & services (33%), groceries (13%), health care (5%), housing (30%), transportation (9%) and utilities (10%). If the cost of living data was unavailable for this city, estimates based upon nearby cities were used.
Cost of living8688100
Goods & Services8994100
Health care8591100

Key findings

  • The cost of living in Montgomery is 2% lower than the Alabama average
  • The cost of living in Montgomery is 14% lower than the national average
  • Montgomery housing is 30% lower than the national average
  • Alabama general sales tax is 21% lower than the national average
  • Alabama state income tax is 19% lower than the national average

Most Affordable Places to Live in and Around Montgomery

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Compare Montgomery, AL Cost of Living

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      Price difference in compared to
      Cost of living index
      Goods & Services index
      Groceries index
      Health care index
      Housing index
      Transportation index
      Utilities index

      Median Income & Debt-To-Income Ratio

      Median IncomePer YearPer MonthMax Budget (28% DTI)Max Budget (36% DTI)
      To approximate the cost of living and the housing affordability in Montgomery, AL, we can look at the percentage of income that is available to be spent on monthly housing, otherwise known as the debt-to-income ratio (DTI). To stay on the safe side, a consumer should not spend more than 28% of his or her gross income on housing-related expenses and costs and not more than 36% of income on all expenses and debts. Homeowners in Montgomery have a median income of $59,148. Therefore, the amount that a consumer should spend on housing costs should be no more than $1,380 per month to avoid calamity and poverty. The renters in the city have an income of about $27,458, which would make their monthly maximum allowable rental costs $641.

      Alabama Sales Tax

      StateGeneral Sales TaxWith Max Surtax

      Alabama Income Tax

      StateIncome Tax (Low)Income Tax (High)

      Goods & Services

      ItemMontgomeryNational avg.Difference
      Haircut $17.80$20.2712.2%
      Beauty Salon $42.20$40.394.5%
      Toothpaste $2.14$2.369.4%
      Shampoo $1.02$1.085.5%
      Movie $6.92$10.9937.0%
      Bowling $12.50$15.4919.3%


      ItemMontgomeryNational avg.Difference
      Ground Beef $3.70$4.3013.9%
      Fried Chicken $1.55$1.4010.5%
      Milk $2.49$2.2012.9%
      Potatoes $3.09$3.224.1%
      Pizza $9.74$10.749.3%
      Beer $9.72$9.601.3%

      Health Care

      ItemMontgomeryNational avg.Difference
      Optometrist $83.33$109.7324.1%
      Doctor $92.00$118.3422.3%
      Dentist $71.40$100.9429.3%
      Ibuprofen $11.00$9.9310.8%
      Lipitor $502.96$469.537.1%


      ItemMontgomeryNational avg.Difference
      Home Price $116,600.00$184,700.0036.9%
      Avg. Mortgage Payment $980.08$1,229.6220.3%
      Apartment Rent $827.00$949.0012.9%


      ItemMontgomeryNational avg.Difference
      Gasoline $2.46$2.719.4%
      Tire Balancing $50.86$51.861.9%


      ItemMontgomeryNational avg.Difference
      All Electricity$170.85$170.840.0%
      Phone $185.19$187.181.1%
      Although the cost of living data is updated regularly, this cost of living information is to be used as estimates only as prices can change on an ongoing basis.

      Nearby cities with low cost of living

      CityPopulationCost of Living IndexNational Avg.
      Elmore, AL1,8908118.6%
      Coosada, AL1,1858811.7%
      Wetumpka, AL7,6548911.4%
      Millbrook, AL15,0459010.4%
      Pine Level, AL3,9189010.3%
      Montgomery, AL201,7178613.9%

      Cities with similar population

      CityPopulationCost of Living IndexNational Avg.
      Moreno Valley, CA202,06111515.5%
      Aurora, IL200,9071000.3%
      Columbus, GA200,303936.6%
      Fayetteville, NC203,6708911.2%
      Yonkers, NY199,72514545.1%
      Montgomery, AL201,7178613.9%
      Source: This data reflects 2021 and was released from C2ER in January, 2022; this is the most current data available.