Cost of Living: Birmingham, AL vs Montgomery, AL (2026)

Birmingham

Alabama
62
VS

Montgomery

Alabama
64

Birmingham and Montgomery have a similar cost of living.

$1,047/mo ↓ 1%
Median Rent
$1,059/mo ↑ 1%
$44,376/yr ↓ 20%
Median Income
$55,687/yr ↑ 25%
$138,600 ↓ 7%
Home Value
$148,500 ↑ 7%
$991/mo ↓ 3%
Owner Costs
$1,023/mo ↑ 3%
199,322
Population
198,440

Tax Comparison

5.0%
Income Tax
5.0%
4.0%
State Sales Tax
4.0%
0.41%
Property Tax
0.41%

Affordability

28.3%
rent-to-income
Affordability
22.8%
rent-to-income

Detailed Comparison

When comparing Birmingham, AL and Montgomery, AL, the overall cost of living indices are 62 and 64 respectively (national median = 100). Rent is comparable in both cities, with less than $50/month separating them.

Median household income is $11,311/year higher in Montgomery. Home values also differ significantly — the median in Birmingham is $138,600 compared to $148,500 in Montgomery.

Both cities share the same state tax structure since they are in Alabama.

Frequently Asked Questions

Birmingham vs Montgomery — common questions

Is Birmingham or Montgomery cheaper to live in?
Based on our cost index, Birmingham is cheaper to live in with an index of 62 compared to 64 (US average = 100).
What is the rent difference between Birmingham and Montgomery?
Median rent in Birmingham is $1,047/month and in Montgomery it's $1,059/month — a difference of $12/month.
Which city has higher income, Birmingham or Montgomery?
Median household income is $44,376 in Birmingham and $55,687 in Montgomery. Median household income is $11,311/year higher in Montgomery.
How do taxes compare between Alabama and Alabama?
Both cities are in Alabama and share the same state tax rates: 5.0% income tax, 4.0% sales tax, and 0.41% property tax.
Should I move to Birmingham or Montgomery?
It depends on your priorities. Birmingham has a cost index of 62 with median rent of $1,047/mo, while Montgomery has a cost index of 64 with rent of $1,059/mo. Consider income potential, tax burden, and lifestyle preferences alongside raw cost data.
View Birmingham details → View Montgomery details →

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