Is it cheaper to live in Aberdeen or Montgomery?

Aberdeen, SD is cheaper. Its monthly baseline of $740 (1BR rent + utilities) runs about 27% below Montgomery, AL's $1,020, mainly because of rent.

How much more do you need to earn to live in Aberdeen than in Montgomery?

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $23,000 a year in Aberdeen versus $33,000 in Montgomery.

Which has lower taxes, Aberdeen or Montgomery?

Aberdeen is taxed under South Dakota's rules (no state income tax and a 4.2% state sales tax); Montgomery under Alabama's (a top state income tax rate of 5.00% and a 4% state sales tax).

Aberdeen vs Montgomery Cost of Living 2026

Aberdeen

South Dakota

$740/mo est.

Montgomery

Alabama

$1,020/mo est.

Monthly estimate = 1BR rent + electricity + gas

A one-person monthly baseline (1BR rent plus typical utilities) runs $740 in Aberdeen, SD versus $1,020 in Montgomery, AL. Overall, Aberdeen, SD is roughly 27% cheaper to live in day-to-day than Montgomery, AL, driven mainly by rent.

Median household income is $63,715 in Aberdeen, SD and $55,687 in Montgomery, AL — about 13% higher in Aberdeen, SD. South Dakota has no state income tax and a 4.2% state sales tax; Alabama has a top state income tax rate of 5.00% and a 4% state sales tax.

Aberdeen, SD

Montgomery, AL

Rent

Studio

$529

$864

+63% in Montgomery, AL

1 Bedroom

$576

$831

+44% in Montgomery, AL

2 Bedroom

$824

$982

+19% in Montgomery, AL

3 Bedroom

$924

$1,172

+27% in Montgomery, AL

Buying a Home

Median Home Value

$205,500

$148,500

+28% in Aberdeen, SD

Income

Median Household Income

$63,715

$55,687

+13% in Aberdeen, SD

Metro Median Wage (annual)

—

$44,950

People & Lifestyle

Median Age

35.8 yr

36.2 yr

+0.4 yr in Montgomery, AL

Homeownership

58.4%

54.3%

+4.1 pp in Aberdeen, SD

Bachelor's+ (25+)

33.6%

33.5%

+0.1 pp in Aberdeen, SD

Avg Commute

11.1 min

20.5 min

+9.4 min in Montgomery, AL

Crime (per 100k/yr)

Violent Crime

275

605.5

+120% in Montgomery, AL

Property Crime

1,421.2

2,258.3

+59% in Montgomery, AL

FBI Crime Data Explorer. Offenses per 100,000 residents per year; agency reporting practices vary, so this is approximate.

Climate

Avg Annual Temperature

43.0°F

65.1°F

+22.1°F in Montgomery, AL

Annual Precipitation

21.7 in

53.1 in

+31.4 in in Montgomery, AL

Gas

Regular Gasoline

$3.85/gal

$3.62/gal

+6% in Aberdeen, SD

Area: Midwest (PADD 2) vs Gulf Coast (PADD 3).

Utilities

Electricity (¢/kWh)

15.4

16.4

+7% in Montgomery, AL

Natural Gas ($/MCF)

$15.26

$24.06

+58% in Montgomery, AL

Residential, state-level averages (EIA). MCF = 1,000 cubic feet.

Groceries

Milk (gal)

$4.31

$4.00

+7% in Aberdeen, SD

Bread (lb)

$1.66

$1.75

+5% in Montgomery, AL

Eggs (doz)

$3.63

$2.21

+39% in Aberdeen, SD

Ground Beef (lb)

$6.77

$6.45

+5% in Aberdeen, SD

Chicken (lb)

$2.10

$1.90

+9% in Aberdeen, SD

Bananas (lb)

$0.62

about equal

Average prices — Midwest vs South (BLS). Regional where available, otherwise U.S. average.

State Taxes

Sales Tax (SD / AL)

4.2%

+0.2 pp in SD

Income Tax (top rate)

None

5.00%

+5.0 pp in AL

Aberdeen vs Montgomery — FAQ

Is it cheaper to live in Aberdeen or Montgomery?: Aberdeen, SD is cheaper. Its monthly baseline of $740 (1BR rent + utilities) runs about 27% below Montgomery, AL's $1,020, mainly because of rent.
How much more do you need to earn to live in Aberdeen than in Montgomery?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $23,000 a year in Aberdeen versus $33,000 in Montgomery.
Which has lower taxes, Aberdeen or Montgomery?: Aberdeen is taxed under South Dakota's rules (no state income tax and a 4.2% state sales tax); Montgomery under Alabama's (a top state income tax rate of 5.00% and a 4% state sales tax).

Sources: US Census Bureau, ACS 5-Year (rent, income, home value, demographics); NOAA Climate Normals 1981–2010 (climate); EIA weekly retail (gas); Tax Foundation 2026 (state taxes).