Cost of Living in Montgomery, Alabama
Rent, everyday costs and taxes in Montgomery, what each job keeps after paying them, and how the city compares with the rest of the US.
- Population
- 195,300
- Median household income
- $59,292
- Cost of living (US = 100)
- 89.7
- Unemployment rate
- 3.6%
Is Montgomery a good place to live?
Montgomery sits in the middle for take-home money: a typical worker keeps more here than in 91 of 178 other large cities, so whether it pays off depends on your job.
A typical worker in Montgomery keeps $7,320 a year after taxes, rent and everyday costs. Try your job
- Cost of living10% below the US average (BEA, 2024)
- Rent$1,014 a month for a 1-bedroom (HUD)
- Taxes$1,847 of state income tax on a typical wage
Cost of living in Montgomery
Prices in the Montgomery, AL area run 10% below the US average. Housing is the biggest difference, at 36% below the US average.
- Housing36% below the US average
- Goods (food, clothing, cars)4% below the US average
- Utilities15% below the US average
- Other services (healthcare and more)3% below the US average
- All items10% below the US average
Monthly budget for one person
| Cost | Monthly | Yearly |
|---|---|---|
| Rent, 1-bedroom | $1,014 | $12,168 |
| Food | $476 | $5,712 |
| Transportation | $376 | $4,512 |
| Healthcare | $340 | $4,080 |
| Utilities | $221 | $2,652 |
| Total before taxes | $2,427 | $29,124 |
Rent by apartment size
| Monthly rent | Montgomery | Whole metro area |
|---|---|---|
| Studio | $998 | $986 |
| 1 bedroom | $1,014 | $1,003 |
| 2 bedrooms | $1,162 | $1,150 |
| 3 bedrooms | $1,492 | $1,476 |
| 4 bedrooms | $1,726 | $1,708 |
Living in Montgomery
How Montgomery compares with the US on income, housing, work and commuting (Census Bureau, ACS 2024 1-year).
| Measure | Montgomery | US |
|---|---|---|
| Median household income | $59,292 | $81,604 |
| Median home value | $197,700 | $360,600 |
| Median rent paid | $1,110 | $1,487 |
| Households renting | 45.2% | 34.7% |
| Unemployment rate | 3.6% | 4.6% |
| Living below the poverty line | 22.5% | 12.2% |
| Adults with a bachelor's degree or higher | 35.9% | 36.9% |
| Median age | 37.1 years | 39.2 years |
| Average commute, one way | 21.5 minutes | 27.2 minutes |
| Working from home | 8% | 13.3% |
| Commuting by public transit | 0.4% | 3.7% |
The 1-year survey doesn’t publish commuting method for Montgomery, so those figures come from the 2020–2024 5-year estimates.
Home internet
6 providers offer home internet to at least a quarter of Montgomery, led by Spectrum, WOW Internet, Cable & Phone, T-Mobile, Verizon. Fiber reaches 49.1% of homes and 49.5% can get gigabit speeds.
Pros and cons of living in Montgomery
Pros
- Shorter commutes. The average one-way commute is 21.5 minutes, against 27.2 nationally.
- Lower cost of living. Prices are 10% below the US average (BEA, 2024).
- Cheaper rent. Median rent is $1,110 a month, against $1,487 nationally.
- Affordable homes to buy. The median home is worth $197,700, against $360,600 nationally.
Cons
- Higher poverty rate. 22.5% of residents live below the poverty line, against 12.2% nationally.
- Lower incomes. Median household income is $59,292, against $81,604 nationally.
- Patchy fast internet. Only 49.5% of homes can get gigabit speeds (FCC).
What your job keeps in Montgomery
Pick a job, or enter your salary, to see what's left after federal, payroll, state and local taxes, a 1-bedroom rent and everyday costs.
- Typical salary
- $44,950
- Federal income tax
- −$3,214
- Payroll taxes
- −$3,439
- State income tax
- −$1,847
- Rent, 1-bedroom
- −$12,168
- Everyday costs
- −$16,962
a year, or $610 a month
Pay: BLS OEWS Montgomery, AL. Rent: HUD FY2027. Taxes: 2026 federal, state and local schedules for a single filer.
What the most common jobs keep here
The 10 jobs we cover with the most workers in the Montgomery, AL area.
| Job | Median pay | You keep |
|---|---|---|
| Lawyer | $125,290 | $62,687 |
| Registered nurse | $79,570 | $32,373 |
| Accountant | $75,040 | $29,362 |
| Teacher | $60,772 | $19,337 |
| Licensed practical nurse | $55,410 | $15,265 |
| Truck driver | $54,860 | $14,847 |
| Social worker | $52,130 | $12,773 |
| Police officer | $48,490 | $10,009 |
| Paralegal | $48,350 | $9,903 |
| Nursing assistant | $35,210 | −$77 |
Other jobs, A–Z
What each keeps in Montgomery on its median pay. Pick one in the calculator above for the full breakdown.
- Auto mechanic $8,900
- Carpenter $9,151
- Civil engineer $44,268
- Data scientist $37,736
- Dental assistant $2,240
- Dental hygienist $18,843
- Diesel mechanic $12,819
- Electrician $11,088
- Financial analyst $40,160
- Firefighter $10,229
- HVAC technician $10,153
- Lineman $45,815
- Mechanical engineer $42,340
- Medical assistant $379
- Nurse practitioner $49,305
- Occupational therapist $41,902
- Paramedic $18,060
- Pharmacist $70,001
- Pharmacy technician $3,083
- Physical therapist $43,529
- Physician assistant $47,304
- Plumber $17,202
- Project manager $40,020
- Radiologic technologist $18,021
- Respiratory therapist $30,613
- Software engineer $53,006
- Speech-language pathologist $26,552
- Veterinarian $47,742
- Welder $9,545
Compare Montgomery with other cities
Compare Montgomery with another city: any city or state, any of our 40 jobs.
Moving to Montgomery
5 licensed interstate movers are based in Montgomery, and 2 more elsewhere in the Montgomery, AL area (FMCSA, household-goods authority).
Questions people ask
Is Montgomery, AL a good place to live?
Montgomery sits in the middle for take-home money: a typical worker keeps more here than in 91 of 178 other large cities, so whether it pays off depends on your job. The typical worker here earns $44,950 and keeps $7,320 a year after federal, payroll and state taxes, a 1-bedroom rent and everyday costs.
What is the cost of living in Montgomery?
Prices in the Montgomery, AL area are 10% below the US average (BEA Regional Price Parities, 2024). A 1-bedroom rents for $1,014 a month (HUD fair market rent, FY2027), and everyday costs for one person, covering food, transportation, healthcare and utilities, come to about $1,414 a month.
How much do you need to earn to live in Montgomery?
A single person renting a 1-bedroom alone needs about $35,400 a year before tax to cover taxes, rent and everyday costs, with nothing left over. The typical worker in the Montgomery, AL area earns $44,950.
What is the average rent in Montgomery?
HUD's fair market rent for FY2027 is $998 for a studio, $1,014 for a 1-bedroom and $1,162 for a 2-bedroom. The Census Bureau puts the median rent paid in Montgomery at $1,110 a month (2024).
Does Montgomery have a state or city income tax?
Yes. On a typical wage of $44,950, Alabama state income tax comes to about $1,847 a year. Montgomery has no local income tax on wages.
What internet providers serve Montgomery?
6 providers offer home internet to at least a quarter of Montgomery, led by Spectrum, WOW Internet, Cable & Phone, T-Mobile, Verizon. 49.1% of homes can get fiber and 49.5% can get gigabit speeds (FCC National Broadband Map).
Sources and method
Everyday costs: BLS Consumer Expenditure Survey 2024 (one-person households) × CPI-U to August 2026 × BEA Regional Price Parities 2024. Taxes assume a single filer with the standard deduction and wage income only.
- Census Bureau, Vintage 2025 population estimates
- Census Bureau, American Community Survey 2024 1-year estimates
- Census Bureau, American Community Survey 2020-2024 5-year estimates
- BLS OEWS May 2025, metropolitan area estimates
- HUD Small Area Fair Market Rents, FY2027
- BLS Consumer Expenditure Surveys 2024, Table 1400 (size of consumer unit)
- BLS Consumer Price Index (CPI-U)
- BEA Regional Price Parities by MSA, 2024
- FCC National Broadband Map, fixed broadband availability (data as of December 31, 2025, released 2026-09-29)
- FMCSA Carrier - All With History (operating authority and insurance)
Data compiled October 13, 2026. How we calculate