Cost of Living in Montgomery, Alabama
In Montgomery, the median household income is $56,811 and the median gross rent is $1,089/mo, with a median home value of $161,900. Source: Census Bureau ACS, 2020-2024 estimates.
- Median household income
- $56,811
- Median gross rent
- $1,089/mo
- Median home value
- $161,900
- Population
- 197,494
How Montgomery compares to the Alabama average
| Measure | Montgomery, AL | Alabama statewide | Difference |
|---|---|---|---|
| Median household income | $56,811 | $63,999 | -11.2% |
| Median gross rent (monthly) | $1,089 | $1,007 | +8.1% |
| Median home value | $161,900 | $209,900 | -22.9% |
Statewide, Alabama prices average 88.8 on the BEA Regional Price Parity index (2024), where the U.S. average is 100.
Housing affordability in Montgomery
- Salary needed for median rent
- $43,560
- Rent burden at median income
- 23.0%
- Est. affordable home price
- $207,243
So that $1,089/mo is 30% of gross income
Share of the median household income spent on median rent (30%+ = cost-burdened)
At median income, 6.67% 30-yr rate (FRED, 2026-08), 20% down, 28% front-end DTI
The median home value in Montgomery is $161,900 — within what the median household income supports under these assumptions.
Estimates from documented formulas — see methodology. Not financial advice.
Cost of living in other Alabama cities
About this data
- American Community Survey 5-Year Estimates — data period 2020-2024, retrieved August 13, 2026.
- Regional Price Parities — data period 2024, retrieved August 13, 2026.
- Federal Reserve Economic Data — data period 2026-08, retrieved August 13, 2026.
Figures are shown exactly as published by the source or derived by the documented formulas on our methodology page. Where a source suppresses an estimate, we show “—” rather than a substitute value.