Cost of Living: Little Rock, AR vs Montgomery, AL (2026)

Little Rock

Arkansas
74
VS

Montgomery

Alabama
64

Little Rock is 16% more expensive than Montgomery.

$1,067/mo ≈ Same
Median Rent
$1,059/mo ≈ Same
$60,583/yr ↑ 9%
Median Income
$55,687/yr ↓ 8%
$221,200 ↑ 49%
Home Value
$148,500 ↓ 33%
$1,099/mo ↑ 7%
Owner Costs
$1,023/mo ↓ 7%
202,739
Population
198,440

Tax Comparison

4.4%
Income Tax
5.0%
6.5%
State Sales Tax
4.0%
0.62%
Property Tax
0.41%

Affordability

21.1%
rent-to-income
Affordability
22.8%
rent-to-income

Detailed Comparison

When comparing Little Rock, AR and Montgomery, AL, the overall cost of living indices are 74 and 64 respectively (national median = 100). Rent is comparable in both cities, with less than $50/month separating them.

Median household income is $4,896/year higher in Little Rock. Home values also differ significantly — the median in Little Rock is $221,200 compared to $148,500 in Montgomery.

Arkansas has a lower income tax rate, making Little Rock slightly more tax-friendly.

Frequently Asked Questions

Little Rock vs Montgomery — common questions

Is Little Rock or Montgomery cheaper to live in?
Based on our cost index, Montgomery is cheaper to live in with an index of 64 compared to 74 (US average = 100).
What is the rent difference between Little Rock and Montgomery?
Median rent in Little Rock is $1,067/month and in Montgomery it's $1,059/month — a difference of $8/month.
Which city has higher income, Little Rock or Montgomery?
Median household income is $60,583 in Little Rock and $55,687 in Montgomery. Median household income is $4,896/year higher in Little Rock.
How do taxes compare between Arkansas and Alabama?
Arkansas has 4.4% income tax, 6.5% sales tax, and 0.62% property tax. Alabama has 5.0% income tax, 4.0% sales tax, and 0.41% property tax.
Should I move to Little Rock or Montgomery?
It depends on your priorities. Little Rock has a cost index of 74 with median rent of $1,067/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 Little Rock details → View Montgomery details →

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