Cost of Living: Montgomery, AL vs Ann Arbor, MI (2026)

Montgomery

Alabama
64
VS

Ann Arbor

Michigan
121

Montgomery is 47% cheaper than Ann Arbor.

$1,059/mo ↓ 32%
Median Rent
$1,552/mo ↑ 47%
$55,687/yr ↓ 31%
Median Income
$81,089/yr ↑ 46%
$148,500 ↓ 66%
Home Value
$435,100 ↑ 193%
$1,023/mo ↓ 38%
Owner Costs
$1,638/mo ↑ 60%
198,440
Population
121,179

Tax Comparison

5.0%
Income Tax
4.25%
4.0%
State Sales Tax
6.0%
0.41%
Property Tax
1.38%

Affordability

22.8%
rent-to-income
Affordability
23.0%
rent-to-income

Detailed Comparison

When comparing Montgomery, AL and Ann Arbor, MI, the overall cost of living indices are 64 and 121 respectively (national median = 100). Rent is $493/month cheaper in Montgomery, saving renters about $5,916/year.

Median household income is $25,402/year higher in Ann Arbor. Home values also differ significantly — the median in Montgomery is $148,500 compared to $435,100 in Ann Arbor.

Michigan has a lower income tax rate, making Ann Arbor slightly more tax-friendly.

Frequently Asked Questions

Montgomery vs Ann Arbor — common questions

Is Montgomery or Ann Arbor cheaper to live in?
Based on our cost index, Montgomery is cheaper to live in with an index of 64 compared to 121 (US average = 100).
What is the rent difference between Montgomery and Ann Arbor?
Median rent in Montgomery is $1,059/month and in Ann Arbor it's $1,552/month — a difference of $493/month.
Which city has higher income, Montgomery or Ann Arbor?
Median household income is $55,687 in Montgomery and $81,089 in Ann Arbor. Median household income is $25,402/year higher in Ann Arbor.
How do taxes compare between Alabama and Michigan?
Alabama has 5.0% income tax, 4.0% sales tax, and 0.41% property tax. Michigan has 4.25% income tax, 6.0% sales tax, and 1.38% property tax.
Should I move to Montgomery or Ann Arbor?
It depends on your priorities. Montgomery has a cost index of 64 with median rent of $1,059/mo, while Ann Arbor has a cost index of 121 with rent of $1,552/mo. Consider income potential, tax burden, and lifestyle preferences alongside raw cost data.
View Montgomery details → View Ann Arbor details →

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