Cost of Living: Houston, TX vs Montgomery, AL (2026)

Houston

Texas
88
VS

Montgomery

Alabama
64

Houston is 38% more expensive than Montgomery.

$1,313/mo ↑ 24%
Median Rent
$1,059/mo ↓ 19%
$62,894/yr ↑ 13%
Median Income
$55,687/yr ↓ 11%
$253,400 ↑ 71%
Home Value
$148,500 ↓ 41%
$1,316/mo ↑ 29%
Owner Costs
$1,023/mo ↓ 22%
2,300,419
Population
198,440

Tax Comparison

0%
Income Tax
5.0%
6.25%
State Sales Tax
4.0%
1.6%
Property Tax
0.41%

Affordability

25.1%
rent-to-income
Affordability
22.8%
rent-to-income

Detailed Comparison

When comparing Houston, TX and Montgomery, AL, the overall cost of living indices are 88 and 64 respectively (national median = 100). Rent is $254/month cheaper in Montgomery, saving renters about $3,048/year.

Median household income is $7,207/year higher in Houston. Home values also differ significantly — the median in Houston is $253,400 compared to $148,500 in Montgomery.

Texas has no state income tax, giving Houston residents a significant tax advantage over Alabama's 5.0% rate.

Frequently Asked Questions

Houston vs Montgomery — common questions

Is Houston or Montgomery cheaper to live in?
Based on our cost index, Montgomery is cheaper to live in with an index of 64 compared to 88 (US average = 100).
What is the rent difference between Houston and Montgomery?
Median rent in Houston is $1,313/month and in Montgomery it's $1,059/month — a difference of $254/month.
Which city has higher income, Houston or Montgomery?
Median household income is $62,894 in Houston and $55,687 in Montgomery. Median household income is $7,207/year higher in Houston.
How do taxes compare between Texas and Alabama?
Texas has 0% income tax, 6.25% sales tax, and 1.6% property tax. Alabama has 5.0% income tax, 4.0% sales tax, and 0.41% property tax.
Should I move to Houston or Montgomery?
It depends on your priorities. Houston has a cost index of 88 with median rent of $1,313/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 Houston details → View Montgomery details →

More Comparisons

Other cost of living comparisons for Houston and Montgomery

Houston vs. Chicago Houston vs. Phoenix Houston vs. Los Angeles Houston vs. Philadelphia Houston vs. New York Houston vs. San Antonio Montgomery vs. Grand Prairie Montgomery vs. Grand Rapids Montgomery vs. Sunrise Manor Montgomery vs. Sioux Falls Montgomery vs. Birmingham Montgomery vs. Overland Park