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

Montgomery

Alabama
64
VS

Allen

Texas
137

Montgomery is 53% cheaper than Allen.

$1,059/mo ↓ 44%
Median Rent
$1,877/mo ↑ 77%
$55,687/yr ↓ 57%
Median Income
$129,130/yr ↑ 132%
$148,500 ↓ 65%
Home Value
$429,900 ↑ 189%
$1,023/mo ↓ 51%
Owner Costs
$2,083/mo ↑ 104%
198,440
Population
107,684

Tax Comparison

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

Affordability

22.8%
rent-to-income
Affordability
17.4%
rent-to-income

Detailed Comparison

When comparing Montgomery, AL and Allen, TX, the overall cost of living indices are 64 and 137 respectively (national median = 100). Rent is $818/month cheaper in Montgomery, saving renters about $9,816/year.

Median household income is $73,443/year higher in Allen. Home values also differ significantly — the median in Montgomery is $148,500 compared to $429,900 in Allen.

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

Frequently Asked Questions

Montgomery vs Allen — common questions

Is Montgomery or Allen cheaper to live in?
Based on our cost index, Montgomery is cheaper to live in with an index of 64 compared to 137 (US average = 100).
What is the rent difference between Montgomery and Allen?
Median rent in Montgomery is $1,059/month and in Allen it's $1,877/month — a difference of $818/month.
Which city has higher income, Montgomery or Allen?
Median household income is $55,687 in Montgomery and $129,130 in Allen. Median household income is $73,443/year higher in Allen.
How do taxes compare between Alabama and Texas?
Alabama has 5.0% income tax, 4.0% sales tax, and 0.41% property tax. Texas has 0% income tax, 6.25% sales tax, and 1.6% property tax.
Should I move to Montgomery or Allen?
It depends on your priorities. Montgomery has a cost index of 64 with median rent of $1,059/mo, while Allen has a cost index of 137 with rent of $1,877/mo. Consider income potential, tax burden, and lifestyle preferences alongside raw cost data.
View Montgomery details → View Allen details →

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