Cost of Living in Montgomery, AL

With a cost of living index of 76, Montgomery, AL is a very affordable place to live. Living here is 24% cheaper than the national average and in line with the Alabama state average. As a major city with a population of 198,440, Montgomery offers a wide range of housing options, employment opportunities, and urban amenities.

Housing costs are the biggest factor in Montgomery's cost of living. The median monthly rent is $1,059 (20% below the US median of $1,319), and the median home value sits at $148,500 (51% below the national median of $304,900). At current prices, the median home costs roughly 2.7x the median household income — well within traditional affordability guidelines.

The median household income in Montgomery is $55,687, which is 26% lower than the national median of $75,149. Residents spend roughly 23% of household income on rent. This is a comfortable ratio, well below the 30% threshold that financial experts recommend as a maximum. Lower incomes here are balanced by the significantly lower cost of living, stretching each dollar further.

Climate is another factor for anyone considering a move to Montgomery. The area sees an average annual temperature of 66.4°F, with summers averaging 82°F and winters around 50°F. Annual rainfall totals 51.2 inches spread over roughly 107 days. The mild climate is a draw for many residents and keeps utility costs moderate year-round.

Everyday prices in the Montgomery, AL (Metropolitan Statistical Area) metro area are generally below the national average. Out of 6 common items tracked by the Bureau of Labor Statistics, 6 are priced lower than the US average. These real-world prices — from groceries to electricity — add up and should be factored into any cost of living comparison.

Data sources: US Census Bureau (ACS 2023), Zillow Home Values, HUD Fair Market Rents, BEA Regional Price Parities, BLS Average Prices, and NOAA Climate Normals. Updated monthly.