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

Montgomery

Alabama
64
VS

Dearborn

Michigan
79

Montgomery is 19% cheaper than Dearborn.

$1,059/mo ↓ 16%
Median Rent
$1,264/mo ↑ 19%
$55,687/yr ↓ 15%
Median Income
$65,192/yr ↑ 17%
$148,500 ↓ 28%
Home Value
$205,900 ↑ 39%
$1,023/mo ↓ 13%
Owner Costs
$1,174/mo ↑ 15%
198,440
Population
107,846

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
23.3%
rent-to-income

Detailed Comparison

When comparing Montgomery, AL and Dearborn, MI, the overall cost of living indices are 64 and 79 respectively (national median = 100). Rent is $205/month cheaper in Montgomery, saving renters about $2,460/year.

Median household income is $9,505/year higher in Dearborn. Home values also differ significantly — the median in Montgomery is $148,500 compared to $205,900 in Dearborn.

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

Frequently Asked Questions

Montgomery vs Dearborn — common questions

Is Montgomery or Dearborn cheaper to live in?
Based on our cost index, Montgomery is cheaper to live in with an index of 64 compared to 79 (US average = 100).
What is the rent difference between Montgomery and Dearborn?
Median rent in Montgomery is $1,059/month and in Dearborn it's $1,264/month — a difference of $205/month.
Which city has higher income, Montgomery or Dearborn?
Median household income is $55,687 in Montgomery and $65,192 in Dearborn. Median household income is $9,505/year higher in Dearborn.
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 Dearborn?
It depends on your priorities. Montgomery has a cost index of 64 with median rent of $1,059/mo, while Dearborn has a cost index of 79 with rent of $1,264/mo. Consider income potential, tax burden, and lifestyle preferences alongside raw cost data.
View Montgomery details → View Dearborn details →

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