Cost of Living: New Orleans, LA vs Montgomery, AL (2026)

New Orleans

Louisiana
90
VS

Montgomery

Alabama
64

New Orleans is 41% more expensive than Montgomery.

$1,211/mo ↑ 14%
Median Rent
$1,059/mo ↓ 13%
$55,339/yr ≈ Same
Median Income
$55,687/yr ≈ Same
$296,400 ↑ 100%
Home Value
$148,500 ↓ 50%
$1,274/mo ↑ 25%
Owner Costs
$1,023/mo ↓ 20%
376,035
Population
198,440

Tax Comparison

4.25%
Income Tax
5.0%
4.45%
State Sales Tax
4.0%
0.55%
Property Tax
0.41%

Affordability

26.3%
rent-to-income
Affordability
22.8%
rent-to-income

Detailed Comparison

When comparing New Orleans, LA and Montgomery, AL, the overall cost of living indices are 90 and 64 respectively (national median = 100). Rent is $152/month cheaper in Montgomery, saving renters about $1,824/year.

Median household income is $348/year higher in Montgomery. Home values also differ significantly — the median in New Orleans is $296,400 compared to $148,500 in Montgomery.

Louisiana has a lower income tax rate, making New Orleans slightly more tax-friendly.

Frequently Asked Questions

New Orleans vs Montgomery — common questions

Is New Orleans or Montgomery cheaper to live in?
Based on our cost index, Montgomery is cheaper to live in with an index of 64 compared to 90 (US average = 100).
What is the rent difference between New Orleans and Montgomery?
Median rent in New Orleans is $1,211/month and in Montgomery it's $1,059/month — a difference of $152/month.
Which city has higher income, New Orleans or Montgomery?
Median household income is $55,339 in New Orleans and $55,687 in Montgomery. Median household income is $348/year higher in Montgomery.
How do taxes compare between Louisiana and Alabama?
Louisiana has 4.25% income tax, 4.45% sales tax, and 0.55% property tax. Alabama has 5.0% income tax, 4.0% sales tax, and 0.41% property tax.
Should I move to New Orleans or Montgomery?
It depends on your priorities. New Orleans has a cost index of 90 with median rent of $1,211/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 New Orleans details → View Montgomery details →

More Comparisons

Other cost of living comparisons for New Orleans and Montgomery

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