What is the cost of living in Montgomery, AL?
According to the most recent data on the cost of living, Montgomery has an overall cost of living index of 89, which is 0.9x lower than the national index of 100.
Compared to Alabama, Montgomery has a cost of living index that's 1.0x lower than Alabama's index of 91.
The standard of living in Montgomery ranks as #41 most affordable out of the 116 places we measured in Alabama. By definition, that implies Montgomery ranks as the #75 most expensive place in the Heart of Dixie.
For more reading on life in Montgomery, check out:
Montgomery Cost Of Living Vs. Alabama
Six factors go into calculating the cost of living index in Montgomery. Here is how it fares on each of the criteria:
The Services index in Montgomery is 93.
The Groceries index in Montgomery is 95.
The Health index in Montgomery is 73.
The Housing index in Montgomery is 99.
The Transportation index in Montgomery is 96.
The Utilities index in Montgomery is 96.
| Living Expense | Montgomery | Alabama | National Average |
|---|---|---|---|
| Overall | 89 | 91 | 100 |
| Services | 93 | 95 | 100 |
| Groceries | 95 | 96 | 100 |
| Health | 73 | 74 | 100 |
| Housing | 99 | 96 | 100 |
| Transportation | 96 | 95 | 100 |
| Utilities | 96 | 95 | 100 |
Montgomery Cost Of Living Compared To Alabama Averages
Index where 100 = national average. Source: cost-of-living index 2026.
For more reading on cost of living around Alabama, check out:
Protect your home budget Compare home warranties in Montgomery Get matched →Source: Cost-of-living index 2026, normalized to US average = 100
Montgomery, AL Housing Cost Breakdown
Housing swings affordability the most between places in Alabama, so we broke down housing costs into more detail. Home and income data comes from the most recent US Census ACS 2020-2024. The key points are:
The Median Home Value in Montgomery is $151,228.
The Median Rent in Montgomery is $1,089.
The Median Income in Montgomery is $56,811.
The Home Value To Income in Montgomery is 2.7x.
The Rent To Monthly Income in Montgomery is 0.23x.
| Statistic | Montgomery | Alabama | United States |
|---|---|---|---|
| Median Home Value | $151,228 | $236,452 | $332,700 |
| Median Rent | $1,089 | $1,007 | $1,413 |
| Median Income | $56,811 | $63,999 | $80,734 |
| Home Value To Income | 2.7x | 3.7x | 4.1x |
| Rent To Monthly Income | 0.23x | 0.19x | 0.21x |
Montgomery, AL Costs By Category
Detailed Montgomery Services costs vs. Alabama
| Item | Montgomery | Alabama |
|---|---|---|
| Shampoo | $1.31 | $1.28 |
| Movie | $9.44 | $12.13 |
| Bowling | $12.0 | $18 |
| Haircut | $23.07 | $24.26 |
| Beauty Salon | $43.53 | $45.56 |
Detailed Montgomery Groceries costs vs. Alabama
| Item | Montgomery | Alabama |
|---|---|---|
| Ground Beef | $5.97 | $5.84 |
| Fried Chicken | $1.67 | $1.57 |
| Milk | $4.55 | $4.67 |
| Potatoes | $5.2 | $4.93 |
| Pizza | $11.39 | $12.09 |
| Beer | $10.73 | $10.41 |
| Toothpaste | $3.65 | $3.7 |
Detailed Montgomery Health costs vs. Alabama
| Item | Montgomery | Alabama |
|---|---|---|
| Optometrist | $93.6 | $125.68 |
| Doctor | $104.44 | $135.78 |
| Dentist | $73.11 | $113.29 |
Detailed Montgomery Transportation costs vs. Alabama
| Item | Montgomery | Alabama |
|---|---|---|
| Gasoline | $3.18 | $3.46 |
| Tire Balancing | $54.09 | $59.92 |
Detailed Montgomery Utilities costs vs. Alabama
| Item | Montgomery | Alabama |
|---|---|---|
| All Electricity | $201.74 | $193.99 |
| Phone | $200.7 | $192.25 |
Montgomery SnackAbility
Cost Of Living In Cities Around Montgomery
The cost of living varies in the cities and towns around Montgomery. Here's a quick look at the cost of living in the most populous nearby places:
Auburn, AL has a cost of living index of 104, 1.2x Montgomery.
Prattville, AL has a cost of living index of 99, 1.1x Montgomery.
Troy, AL has a cost of living index of 93, 1.0x Montgomery.
| City | Population | Cost Of Living | Vs. Montgomery |
|---|---|---|---|
| Auburn, AL | 80,594 | 104 | 1.2x |
| Prattville, AL | 39,482 | 99 | 1.1x |
| Troy, AL | 17,716 | 93 | 1.0x |
| Millbrook, AL | 17,189 | 93 | 1.0x |
| Selma, AL | 17,057 | 84 | 0.9x |
| Wetumpka, AL | 7,437 | 92 | 1.0x |
