Cost of Living in Montgomery, Alabama

Is Montgomery, AL, expensive to live in? Let's look deeper into the costs of living in Montgomery, the average household income, typical expenses, and more!

Montgomery is the capital city of Alabama, home to a total population of 298,665 residents. This city is considered to be the second-largest city in Alabama and is in the center of everything! Montgomery lies at the Alabama river and south of Birmingham. Whether you are interested in sports, outdoor lifestyle, or entertainment, this city may be for you. Since this is such a large city, you can get the busy city life or sunburn, depending on where you want to locate, so you can get the best of both worlds.

Considered to be one of the best places to live in Alabama, Montgomery is an excellent place to live that is worth visiting and moving to. As the capital city of Alabama, Montgomery offers a job market that is on the rise, affordable cost of living, various nightlife options, restaurants, and many other family-friendly attractions. If you love history, you will love this city since it is the birthplace of the modern civil rights movement. You cannot miss out on this city full of southern charm!

While this city has a lot to offer, you can not miss out on this affordable and budget-friendly place to live. Relocating to this capital city is an excellent move for businesses, families, and everyone! Finding somewhere that is affordable and where you will love to call home is essential! Let's see if Montgomery is perfect for you.

In this guide, we will be covering the cost of living in Montgomery with data that covers data from all the significant areas. These categories will help you have a better idea of what you'll need to budget to live in a place you love!

Cost of Living in Montgomery

The cost of living in Montgomery is 12 percent lower than the national average, with a median home price of $293,217 and a median rent of $895 per month! This famous city is one of the most affordable places to live in Alabama, where the housing expenses are 27 percent lower than the national average, bus fares and gas prices are 10 percent lower than the national average; however, the utility prices are 1 percent higher than the national average.

While the cost of living is lower, the healthcare services and non-necessary expenses like entertainment are also lower than the national average! This is an excellent place for younger adults to move to or if you want to start a family. But know that affordability is not the only reason why people love living in this capital city!

Data sources from Payscale.

Income

The median household income in Montgomery is about $49,608. The percentage of people who live in poverty here is about 21 percent. The economy employs about 86 thousand people. The largest industries in Montgomery are Health care and Social Assistance, Manufacturing, and Retail Trade. The highest-paying industries are Management of Companies and Enterprises, Professional, Scientific, and Technical Services, and Utilities. The males have an average income of 1.4 times higher than the females, which is $44,111.

White-collar workers make up about 77 percent of the working population, while blue-collar employees make up about 22 percent. There are also people who are entrepreneurs, work in private companies and work in governmental institutions.

Housing Cost

Housing is the most significant expense when deciding where to live. The cost of living takes into account the price of rent and the price of the home. The average monthly rent here in Montgomery is $895.71, and the home's median sales price is about $293,217. Renting is sometimes lower; here in Montgomery, about 44 percent of people rent out homes, while the national rate is about 36 percent. 

Montgomery offers single and multi-family residences ranging from apartments in the city to townhomes throughout its historic neighborhoods full of southern vibes. Whether you want to buy a house somewhere that is more elegant, busy, or authentic feel, Montgomery has it all for you! You can not miss out on all the beautiful homes for sale while enjoying the breathing views from all of them!

Montgomery has about 93,258 housing units, and the median year in which these were built is 1978. About 54 percent of these housing units are owner-occupied, and about 46 percent of these houses have renters living in them. 

Utilities

Owning and renting homes come with utility costs, including essential services such as monthly energy and communications. Montgomery's average utility bill is about $172.01 per month. The average monthly water costs are $41.07, which is lower than the national average which is at $47.06. Utilities in Montgomery tend to cost 6 percent lower than the national average, though!

Utilities seem like something that is not taken into account when deciding where to live. Still, in reality, utilities are very important to look at because every place is different, and it all depends on many different reasons. Since this is the capital, it is surprising how low the prices are compared to the national average, which is something to look at!

Food

Food costs are one of the most important things to take into account for. No matter where you live, you will have a different cost of food depending on your location. A single adult will spend, on average, about $3,206 on food annually, and a family of four will spend about $9,259 on average. Here are some of the average costs at the grocery store here in Montgomery.

Since this is a southern state, you will also be able to enjoy all of the various foods that you can choose from. Montgomery's eating treasures include a four-star BBQ, meat-and-2, and fantastic seafood. You can not miss out on these homestyle southern favorite foods! Finding a place to live in this large city is not difficult to do. Whether you want to eat somewhere that is in the heart of it all or even in the historic village, you will find many excellent options to choose from!

Healthcare

Healthcare is a significant expense that everyone needs. Making sure that you can live somewhere affordably while also having the services you need is essential. In Montgomery, an optometry check-up costs around $85.70, while a dentist appointment costs $72.95 on average. The out-of-pocket health care costs and insurance premiums are slightly higher than the national average.  A single adult pays about $4,747 in health care costs per year, while the nationwide average is $4,266.

Transportation

Transportation can be based on many factors, including fuel expenses, car repairs, or public transportation. A gallon of gas is priced at approximately $2.80, and getting your tires checked would cost you about $49.00. Montgomery is known as a car-dependent city since it is the capital and has a busy city life. However, it does offer public transportation and private services like Uber. The Montgomery Transit has 15 bus routes with 686 bus stops and a train station. Other than public transportation, many residents own their own cars to limit congestion in public transit, or they will choose to walk the city.

Traffic jams are one of the downfalls of transportation in this large city since many commuters use public transit and their own vehicles to get to and from the city. However, the commute time is less than the national average during rush hour. A total of 79,103 residents commute by car, 1,495 prefer to go to work by walking, and about 391 residents would instead take the bus or trolly bus.

Taxes

Taxes will vary from city to city and town to town. Accounting for state and federal income taxes, Social Security contributions, and Medicare payroll taxes, the average adult working in Montgomery pays $5,859 annually, which is close to the statewide average of $6,084. Some calculations do not include other common taxes like property, sales, and excise taxes. Montgomery residents live in a state with a low average tax burden, though!

FAQ

Is Montgomery a safe place to live?

Sadly, Montgomery has one of the highest crime rates in America compared to all of the other communities of all sizes. For the most part, this city is one of the safest places in Alabama, considering it is the capital and city life. On average, 1 in every 225 people will be a victim of crime.

Is it expensive to live in Montgomery?

The cost of living here in Montgomery is 12 percent lower than the national average and is one of the most affordable places to live in Alabama. So no, Montgomery is not very expensive to live in, especially considering it is the capital.

Is Montgomery a cheap city?

While the living costs are lower, healthcare and non-necessary expenses like entertainment are also lower than the national average! Finding a place to live where you can afford it comfortably while doing all the other fun things is somewhere where you will love to live.

Is Montgomery a tax-friendly city?

The 2023 sales tax rate in Montogmery is 10 percent and consists of 4 percent Alabama state sales tax, 2.5 percent Montgomery County sales tax, and 3.5 percent of Montogomery city tax.

What is the weather like in Montgomery, AL?

In Montgomery, summers are long, hot, and oppressive, and the winters are short and cold, while it is also very wet and partly cloudy year-round. The hot season usually lasts about 4 months, with July being the hottest month, and the cold seasons usually last about 3 months, with January being the coldest month of the year. On the other hand, the wettest months of the year will range from February to August.

What salary do I need to live in Montgomery?

A good salary in Montgomery is anything that is over $40,000. To live comfortably, you want to earn more than the average median income. The average good hourly wage here is also $21.15 per hour!

How is education in Montgomery?

Montgomery has one of the highest concentrations of top-ranked public schools in Alabama. The school district has about 28,000 students in grades PK til 12th, with a student-to-teacher ratio of 19 to one. On the other hand, there are also eight colleges in this area, including five private colleges, two public colleges, and one community college!

Finding the perfect place to live in Montgomery, AL

After considering the cost of living in Montgomery, Alabama, you can decide where to buy your next home. Weighing out all the factors, such as the cost of goods, utilities, taxes, and more, is crucial when deciding where to live.

Montgomery is considered one of the more affordable places in Alabama and the United States. Its location and the things around it make this place a very lovable and fan favorite to live in or visit! This low-cost-of-living city may be perfect for you!

Finding an affordable place to live can make a huge difference when you move to a new home. Here in Montgomery, you can easily find the perfect place to settle down, or we can help you find a place in any nearby town similar to Montgomery. Being able to say that you love where you live is something that we want for you!

Our Realty Specialists are here to help you search for your dream home if you are considering moving to Montgomery. Contact us here for all of your home-buying needs! Make sure you can be happy with your choice and lift all of that weight off of your shoulders by choosing the perfect area to live in!

Check out some of these other local area guides: moving to Alabama, best places to live in Alabama, and cost of living Alabama.