Skip to main content
LiveWhere us
Montgomery, AL

Cost of living in Montgomery, Alabama

Montgomery County, AL

Part of the Montgomery Metro Area

Estimated monthly cost
$2,873/mo
for a single person, all categories combined

Population 227,197 · Last updated May 21, 2026

Cost breakdown

Single person, by category, per month.

Rent $888 31%
Healthcare $480 17%
Federal tax $437 15%
Transport $320 11%
Groceries $306 11%
Energy $237 8%
State tax $150 5%
Water $55 2%

Rent in Montgomery

Fair Market Rents by bedroom count.

Studio
$848
per month
1 bedroom
$888
per month
2 bedroom
$1,055
per month
3 bedroom
$1,345
per month
4 bedroom
$1,665
per month

Source: HUD FMR FY2025

Income and earnings in Montgomery

Annual earnings figures from the Census ACS.

Household income
$58,153
per year
Individual earnings
$36,814
per year
Per capita
$33,404
per year

Source: ACS 2019-2023 5-Year.

Home values in Montgomery

Average values reported by homeowners.

Average home value
$160,100
Annual property tax
$598

Source: ACS 2019-2023 5-Year

Energy costs in Montgomery

Estimated monthly electricity and gas costs.

Electricity
$179
per month · 15.6¢/kWh
Natural gas
$58
per month
Annual total
$2,844
per year

Source: EIA

Healthcare in Montgomery

Insurance premiums and coverage rates.

Individual premium
$480
per month
Family premium
$1,350
per month
Uninsured rate
10.6%

Source: ACS + national avg. Marketplace benchmark premiums are second-lowest Silver plan estimates and do not reflect employer plans, subsidies, or out-of-pocket costs. This is not healthcare advice.

Taxes in Montgomery

State and local tax rates for Alabama.

State income tax
5.0%
Top marginal rate
State sales tax
4.0%
Combined sales tax
9.2%
incl. average local

Tax rates change. Consult a qualified tax professional for advice on your specific situation. This is not tax advice.

Transportation in Montgomery

Commute patterns and estimated costs.

Average commute
21.4 min
Drive alone
80.9%
Public transit
0.4%
Work from home
7.3%

Source: ACS

Monthly cost estimates for Montgomery

What it costs to live in Montgomery each month.

Single person
$2,873
per month
  • Rent $888
  • Energy $237
  • Water $55
  • Groceries $306
  • Transport $320
  • Healthcare $480
  • Federal tax $437
  • State tax $150
Couple
$4,056
per month
  • Rent $1,055
  • Energy $284
  • Water $65
  • Groceries $507
  • Transport $420
  • Healthcare $864
  • Federal tax $622
  • State tax $239
Family
$6,476
per month
  • Rent $1,345
  • Energy $356
  • Water $75
  • Groceries $769
  • Transport $520
  • Healthcare $1,350
  • Childcare $1,200
  • Federal tax $622
  • State tax $239

Frequently asked questions about Montgomery

Common questions about cost of living, rent and salary.

What is the average rent in Montgomery?

In Montgomery, Alabama, a one-bedroom apartment averages $888 per month, a two-bedroom averages $1,055 per month, a three-bedroom averages $1,345 per month, according to HUD Fair Market Rent data.

What is the average salary in Montgomery?

In Montgomery, Alabama, the average household income is $58,153 per year and individual earnings for full-time workers average $36,814 per year, according to U.S. Census Bureau data.

What is the cost of living in Montgomery?

The estimated cost of living in Montgomery, Alabama is approximately $2,873 per month for a single person, $4,056 for a couple, $6,476 for a family. This includes rent, utilities, groceries, transportation, healthcare, and taxes.

What is the sales tax rate in Montgomery?

The combined sales tax rate in Montgomery, Alabama is 9.24%, which includes the Alabama state rate of 4.00% plus an average local rate of 5.24%.

Is Montgomery an affordable place to live?

Based on the data, a single person in Montgomery, Alabama would need approximately $2,873 per month to cover rent, utilities, food, transport, healthcare, and taxes. The average household income is $58,153 per year ($4,846 per month). Montgomery has a moderate cost of living relative to local earnings.

How much does healthcare cost in Montgomery?

The ACA marketplace benchmark premium in Montgomery, Alabama is approximately $480 per month for an individual. Approximately 10.6% of residents are uninsured. Actual costs vary based on employer coverage, plan type, and individual circumstances.

What are house prices in Montgomery?

The average home value in Montgomery, Alabama is $160,100, with average annual property taxes of $598, according to U.S. Census Bureau data.

How does Montgomery compare to other areas?

You can compare Montgomery, Alabama with any other US county using our comparison tool at /compare. Montgomery is in the Montgomery, AL metro area.

Other counties in Alabama

Browse the full list of counties in Alabama, ranked by cost of living.

See all counties in Alabama

Compare Montgomery with another area

Put two counties side by side to see how rent, taxes and everyday costs stack up.

About this data

All figures on this page come from official U.S. government sources, listed below.

  • HUD FMR FY2025
  • ACS 2019-2023 5-Year
  • EIA
  • ACS + national avg
  • ACS
  • USDA + BEA RPP
Methodology All data sources