Cost of Living: Nashville, TN vs Montgomery, AL (2026)

Nashville

Tennessee
110
VS

Montgomery

Alabama
64

Nashville is 72% more expensive than Montgomery.

$1,486/mo ↑ 40%
Median Rent
$1,059/mo ↓ 29%
$75,197/yr ↑ 35%
Median Income
$55,687/yr ↓ 26%
$383,100 ↑ 158%
Home Value
$148,500 ↓ 61%
$1,471/mo ↑ 44%
Owner Costs
$1,023/mo ↓ 30%
684,298
Population
198,440

Tax Comparison

0%
Income Tax
5.0%
7.0%
State Sales Tax
4.0%
0.64%
Property Tax
0.41%

Affordability

23.7%
rent-to-income
Affordability
22.8%
rent-to-income

Detailed Comparison

When comparing Nashville, TN and Montgomery, AL, the overall cost of living indices are 110 and 64 respectively (national median = 100). Rent is $427/month cheaper in Montgomery, saving renters about $5,124/year.

Median household income is $19,510/year higher in Nashville. Home values also differ significantly — the median in Nashville is $383,100 compared to $148,500 in Montgomery.

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

Frequently Asked Questions

Nashville vs Montgomery — common questions

Is Nashville or Montgomery cheaper to live in?
Based on our cost index, Montgomery is cheaper to live in with an index of 64 compared to 110 (US average = 100).
What is the rent difference between Nashville and Montgomery?
Median rent in Nashville is $1,486/month and in Montgomery it's $1,059/month — a difference of $427/month.
Which city has higher income, Nashville or Montgomery?
Median household income is $75,197 in Nashville and $55,687 in Montgomery. Median household income is $19,510/year higher in Nashville.
How do taxes compare between Tennessee and Alabama?
Tennessee has 0% income tax, 7.0% sales tax, and 0.64% property tax. Alabama has 5.0% income tax, 4.0% sales tax, and 0.41% property tax.
Should I move to Nashville or Montgomery?
It depends on your priorities. Nashville has a cost index of 110 with median rent of $1,486/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 Nashville details → View Montgomery details →

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