Montgomery, MD

Above Avg · 128

Maryland · Population 34,161 · Updated March 2026

$1,883
Median Rent / Month
$96,487
Median Income
$367,100
Median Home Value
$1,939
Owner Costs / Month

Affordability

How far your income goes in Montgomery

23.4%
Rent-to-Income Ratio
Affordable
Rent takes less than 25% of median income — considered affordable by HUD standards.

Tax Burden in Maryland

State-level tax rates that affect your costs

5.75%
Income Tax (Top Rate)
6.0%
Sales Tax
1.07%
Property Tax Rate

Estimated Annual Costs

$22,596
Annual Rent
$5,548
State Income Tax
$3,928
Property Tax (est.)

Cost of Living Overview

Montgomery has a significantly higher cost of living than most US cities, driven largely by premium housing costs. With a cost index of 128 (where 100 equals the national median), Montgomery residents can expect to pay median rent of $1,883/month while earning a median household income of $96,487/year.

The median home value in Montgomery, MD is $367,100, with typical monthly owner costs around $1,939 including mortgage, insurance, and taxes. The median rent-to-income ratio of 23.4% means housing is relatively affordable here — well below the 30% threshold that HUD considers cost-burdened.

Maryland has a moderate income tax rate of 5.75%. Combined with a 6.0% sales tax rate and 1.07% effective property tax rate, the overall tax environment is a factor in the total cost of living in Montgomery.

Frequently Asked Questions

Common questions about living costs in Montgomery

What is the cost of living in Montgomery, MD?
The cost of living index in Montgomery, MD is 128 (US average = 100). Median monthly rent is $1,883, median household income is $96,487/year, and the median home value is $367,100.
Is Montgomery, MD affordable?
No, Montgomery is more expensive than the national average with a cost index of 128. The rent-to-income ratio is 23.4%—below the 30%% threshold considered affordable by HUD.
What is the average rent in Montgomery, MD?
The median gross rent in Montgomery, MD is $1,883 per month according to the US Census Bureau ACS 2023 data. Annual rent costs approximately $22,596.
What is the median household income in Montgomery?
The median household income in Montgomery, MD is $96,487 per year. This compares to the national median of approximately $80,000.
What are the taxes like in Maryland?
Maryland has a top income tax rate of 5.75%, a sales tax of 6.0%, and an effective property tax rate of 1.07%.