StateRates

Montgomery cost of living

Prices in the Montgomery, AL metro area run at 89.7 against a national average of 100, ranking it #295 of 387 metros. Rents there sit at 64.3.

Alabama

All items 89.7 #295 of 387 metros
Rents 64.3 national average 100
Median wage $42,600 BLS metro survey
Worth nationally $47,492 same wage, adjusted

What drives the number

Prices in Montgomery run at 89.7 where the national average is 100, so about 10.3 per cent below the country as a whole. It ranks #295 of 387 metro areas. Against Alabama as a whole it is 0.9 points more expensive, which is the usual direction: cities cost more than the states around them.

Housing is unusually cheap relative to everything else here. Rents sit at 64.3 against goods at 96.4 and other services at 84.9, so the overall figure of 89.7 understates how affordable the housing itself is. It is the opposite of the usual pattern, where housing is what makes a place expensive.

The number is most useful in reverse: a job here can pay less in cash and still leave a household better off, by roughly 10.3 per cent before anything else is considered.

All items 89.7
Goods 96.4
Rents 64.3
Other services 84.9

The vertical line is the national average of 100. Source: U.S. Bureau of Economic Analysis, Regional Price Parities, SARPP, 2024.

Salaries in Montgomery

What the biggest local jobs are really worth

The same pay buys different amounts in different places, so a salary quoted in Montgomery is not comparable to one quoted elsewhere until it is divided by the local parity. These are the occupations that employ the most people here, with the quoted median alongside what that median is worth at national prices.

Largest occupations in Montgomery, quoted and price-adjusted
Occupation Employed Median pay Worth nationally U.S. median
Miscellaneous Assemblers and Fabricators 6,540 $41,830 $46,633 $42,210
Retail Salespersons 4,670 $29,010 $32,341 $34,580
Secretaries and Administrative Assistants, Except Legal, Medical, and Executive 3,730 $40,240 $44,861 $46,290
Registered Nurses 3,720 $80,250 $89,465 $93,600
Laborers and Freight, Stock, and Material Movers, Hand 3,600 $35,730 $39,833 $38,940
Cashiers 3,450 $27,170 $30,290 $31,190
Stockers and Order Fillers 3,270 $31,780 $35,429 $37,090
Fast Food and Counter Workers 3,050 $22,890 $25,518 $30,480

Pay from the BLS metro survey, adjusted by dividing by the metro parity of 89.7.

Nearby metro areas

Other metros in the same states
Metro area All items Rents Rank
Daphne-Fairhope-Foley 94.7 89.2 #172
Huntsville 93.1 77.9 #207
Birmingham 91.6 71.9 #254
Columbus 89.3 61.2 #304
Mobile 88.1 60.1 #333
Auburn-Opelika 87.9 62.1 #338

Montgomery: common questions

Is Montgomery expensive?

Prices are 10.3% below the national average, a parity of 89.7 where the country is 100. It ranks #295 of the 387 metro areas BEA measures. Against Alabama as a whole it is 0.9 points more expensive.

What salary do you need in Montgomery?

The median worker there earns $42,600, which buys what $47,492 buys nationally once local prices are taken into account. Comparing a salary offer between cities without this adjustment is comparing nothing useful.

Is housing the reason?

Usually. Rents here are at 64.3 against goods at 96.4. Goods barely vary between American cities because most are shipped and priced nationally; housing varies enormously, and it dominates any cost of living comparison.