Cost of Living in Montgomery, AL
Updated November 2026 · Montgomery County · Montgomery, AL metro area · population 197,494
Prices in Montgomery are 9.7% below the US average (local index 90.3; the BEA index for the Montgomery, AL metro area is 89.7), with local housing the biggest saving at 62.3; a single adult's modelled budget is about $2,251 a month and the median rent is $1,089.
Prices by category
CostLiving local estimate. 100 = US average; 110 means prices are 10% higher. Housing reflects Montgomery's own median rent compared with the area's average rent; goods, utilities and other services are BEA's official price parities for the Montgomery, AL metro area, unchanged.
Montgomery price index by category, US average = 100: All items 90.3, Housing (rents) 62.3, Goods 96.4, Utilities 84.9, Other services 96.7
It is the 6th most expensive of the 14 Alabama cities in our data. Cheaper than 92% of the cities we cover.
| BEA index | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|---|
| All items | 88.8 | 87.5 | 88.5 | 89.8 | 89.9 | 89.7 |
Monthly budget by household type
1 adult · 1-bedroom · modelled estimate for Montgomery, AL
| Category | Per month | Per year | Share |
|---|---|---|---|
| Housing (rent) | $651 | $7,812 | 29% |
| Utilities | $263 | $3,156 | 12% |
| Food at home | $272 | $3,264 | 12% |
| Transportation | $564 | $6,768 | 25% |
| Health care | $340 | $4,080 | 15% |
| Clothing, personal care & supplies | $161 | $1,932 | 7% |
| Total | $2,251 | $27,012 | 100% |
2 adults · 2-bedroom · modelled estimate for Montgomery, AL
| Category | Per month | Per year | Share |
|---|---|---|---|
| Housing (rent) | $759 | $9,108 | 20% |
| Utilities | $413 | $4,956 | 11% |
| Food at home | $502 | $6,024 | 13% |
| Transportation | $1,116 | $13,392 | 30% |
| Health care | $630 | $7,560 | 17% |
| Clothing, personal care & supplies | $318 | $3,816 | 9% |
| Total | $3,738 | $44,856 | 100% |
2 adults + 2 children · 3-bedroom · modelled estimate for Montgomery, AL
| Category | Per month | Per year | Share |
|---|---|---|---|
| Housing (rent) | $885 | $10,620 | 19% |
| Utilities | $504 | $6,048 | 11% |
| Food at home | $716 | $8,592 | 16% |
| Transportation | $1,484 | $17,808 | 32% |
| Health care | $587 | $7,044 | 13% |
| Clothing, personal care & supplies | $410 | $4,920 | 9% |
| Total | $4,586 | $55,032 | 100% |
Modelled estimate of basic costs, excluding taxes, child care and savings. Housing is rent excluding tenant-paid utilities (counted under utilities). See how the budget is calculated.
Housing costs in Montgomery
Rent by number of bedrooms
| Size | Median rent |
|---|---|
| Studio | $865 |
| 1 bedroom | $884 |
| 2 bedrooms | $1,031 |
| 3 bedrooms | $1,202 |
| 4 bedrooms | $1,435 |
Median rent: Census ACS 2020-2024 median gross rent by bedrooms (rent plus tenant-paid utilities, all renters).
Rent, home values and affordability
| Measure | Value |
|---|---|
| Median gross rent | $1,089 |
| Median contract rent (excl. utilities) | $802 |
| Median home value | $161,900 |
| Owner costs with a mortgage | $1,307/mo |
| Median household income | $56,811 |
| Rent as % of renter income Expensive | 32.3% |
| Home value ÷ household income Very affordable | 2.8× |
Census ACS 5-year 2020-2024.
Electricity and gas prices
Residential electricity in Alabama
16.33¢ per kWh, August 2026
12-month change: +0.4% (from 16.26¢) · US 18.16¢
Average household uses 1,139 kWh a month in Alabama ≈ $187/month. Source: EIA-861M (statewide average).
Regular gasoline regional figure: Gulf Coast (PADD 3)
$3.64 per gallon, week of 2026-11-02
12-month change: +44.8% (from $2.51) · US $4.15
EIA weekly retail price survey; Alabama is covered by the Gulf Coast (PADD 3) average.
Inflation in the South
Consumer prices in the South Census region rose +3.4% in the 12 months to September 2026 (US +3.7%). Nationally, food at home changed +1.8%, shelter +3.2% and energy +20.4%. Source: BLS CPI-U, not seasonally adjusted. CPI is published for regions and large metro areas, so the regional figure is shown.
Salary equivalent
Because prices in Montgomery are 9.7% below the US average, $60,000 here has the buying power of about $66,500 in an average-priced US area.
Formula: US-equivalent = salary × 100 ÷ 90.3. Based on the local cost index (CostLiving estimate from BEA RPP and Census rents); taxes not included.
Nearby cities
| City | Distance | Index | Budget (single) | Median rent |
|---|---|---|---|---|
| Auburn, AL | 49 mi | 91.0 | $2,419 | $1,098 |
| Hoover, AL | 78 mi | 93.9 | $2,673 | $1,457 |
| Columbus, GA | 82 mi | 91.2 | $2,314 | $1,106 |
| Birmingham, AL | 87 mi | 90.3 | $2,409 | $1,107 |
| Dothan, AL | 92 mi | 87.9 | $2,101 | $960 |
| Anniston, AL | 95 mi | 88.3 | $2,055 | $799 |
Cities with a similar cost of living
| City | Index | Budget (single) | Median rent |
|---|---|---|---|
| Norman, OK | 90.3 | $2,331 | $1,090 |
| Midwest City, OK | 90.3 | $2,227 | $1,091 |
| Independence, MO | 90.3 | $2,294 | $1,109 |
| Council Bluffs, IA | 90.2 | $2,230 | $1,030 |
| Gulfport, MS | 90.4 | $2,294 | $1,086 |
| Kokomo, IN | 90.2 | $2,159 | $939 |
Compare Montgomery with another city
Frequently asked questions
Is Montgomery, AL an expensive place to live?
Montgomery has a local cost of living index of 90.3, which is 9.7% below the US average. This CostLiving estimate starts from the BEA Regional Price Parities 2024 for the Montgomery, AL metro area (89.7) and adjusts housing to Montgomery's own rents. It is 1.4 points above the Alabama average. It is the 6th most expensive of the 14 Alabama cities in our data. Cheaper than 92% of the cities we cover.
How much money do you need to live in Montgomery?
Our modelled estimate of basic monthly costs is $2,251 for a single adult, $3,738 for a couple and $4,586 for a family of four, before taxes, child care and savings. A $60,000 salary in an average-priced US area buys about the same as $54,200 in Montgomery.
What is the average rent in Montgomery?
The median gross rent (rent plus tenant-paid utilities) is $1,089 a month (Census ACS 2020-2024). By size: 1 bedroom $884, 2 bedrooms $1,031, 3 bedrooms $1,202. The typical renter spends 32.3% of household income on rent (expensive).
How much does a house cost in Montgomery?
The median owner-estimated home value is $161,900, 2.8 times the median household income of $56,811 (very affordable). Owners with a mortgage pay a median $1,307 a month in housing costs.
How much is electricity and gas in Montgomery?
Alabama residential electricity averaged 16.33¢ per kWh in August 2026 (US 18.16¢). Regular gasoline was $3.64 a gallon (Gulf Coast (PADD 3) average, week of 2026-11-02).
Sources and notes
- Local cost index: CostLiving estimate from BEA Regional Price Parities 2024 for the Montgomery, AL metropolitan statistical area (BEA index 89.7) with housing from Census ACS median rent (city figure); see the methodology.
- Rents, home values, income, population: U.S. Census Bureau ACS 5-year 2020-2024, Census place 0151000 (Montgomery city).
- Electricity: EIA-861M, Alabama residential average, August 2026.
- Gasoline: EIA weekly retail regular gasoline, Gulf Coast (PADD 3), week of 2026-11-02.
- Inflation: BLS CPI-U South region, September 2026.
- Budget baselines: BLS Consumer Expenditure Survey 2025; electricity use by household size: EIA RECS 2020.
- Gasoline price: regional figure (EIA publishes weekly prices for only 9 states).
Labels such as “county figure” or “state nonmetro figure” mark values that come from a larger area because the city-level figure is unavailable or unreliable. The monthly budget is a modelled estimate, not observed spending, and excludes taxes. This page is for general information and is not financial advice. Methodology · All sources