Is it cheaper to live in Billings or Birmingham?

Billings, MT is cheaper. Its monthly baseline of $1,030 (1BR rent + utilities) runs about 13% below Birmingham, AL's $1,190, mainly because of rent.

How much more do you need to earn to live in Billings than in Birmingham?

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $36,000 a year in Billings versus $40,000 in Birmingham.

Which has lower taxes, Billings or Birmingham?

Billings is taxed under Montana's rules (a top state income tax rate of 5.65% and no state sales tax); Birmingham under Alabama's (a top state income tax rate of 5.00% and a 4% state sales tax).

Billings vs Birmingham Cost of Living 2026

Billings

Montana

$1,030/mo est.

Birmingham

Alabama

$1,190/mo est.

Monthly estimate = 1BR rent + electricity + gas

A one-person monthly baseline (1BR rent plus typical utilities) runs $1,030 in Billings, MT versus $1,190 in Birmingham, AL. Overall, Billings, MT is roughly 13% cheaper to live in day-to-day than Birmingham, AL, driven mainly by rent.

Median household income is $71,855 in Billings, MT and $44,376 in Birmingham, AL — about 38% higher in Billings, MT. Montana has a top state income tax rate of 5.65% and no state sales tax; Alabama has a top state income tax rate of 5.00% and a 4% state sales tax.

Billings, MT

Birmingham, AL

Rent

Studio

$877

$857

+2% in Billings, MT

1 Bedroom

$889

$1,004

+13% in Birmingham, AL

2 Bedroom

$1,102

$1,005

+9% in Billings, MT

3 Bedroom

$1,398

$1,188

+15% in Billings, MT

Buying a Home

Median Home Value

$311,800

$138,600

+56% in Billings, MT

Income

Median Household Income

$71,855

$44,376

+38% in Billings, MT

Metro Median Wage (annual)

$49,060

$47,770

+3% in Billings, MT

People & Lifestyle

Median Age

38.1 yr

35.9 yr

+2.2 yr in Billings, MT

Homeownership

64.8%

45.1%

+19.7 pp in Billings, MT

Bachelor's+ (25+)

37.0%

30.7%

+6.3 pp in Billings, MT

Avg Commute

16.7 min

21.5 min

+4.8 min in Birmingham, AL

Crime (per 100k/yr)

Violent Crime

750.2

1,274.7

+70% in Birmingham, AL

Property Crime

3,123.5

4,233

+36% in Birmingham, AL

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

Climate

Avg Annual Temperature

48.2°F

63.3°F

+15.1°F in Birmingham, AL

Annual Precipitation

13.7 in

53.7 in

+40.1 in in Birmingham, AL

Gas

Regular Gasoline

$4.29/gal

$3.62/gal

+15% in Billings, MT

Area: Rocky Mountain (PADD 4) vs Gulf Coast (PADD 3).

Utilities

Electricity (¢/kWh)

14.7

16.8

+14% in Birmingham, AL

Natural Gas ($/MCF)

$8.77

$22.64

+158% in Birmingham, AL

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

Groceries

Milk (gal)

$4.82

$4.00

+17% in Billings, MT

Bread (lb)

$2.04

$1.75

+14% in Billings, MT

Eggs (doz)

$2.19

$2.21

+1% in Birmingham, AL

Ground Beef (lb)

$7.36

$6.45

+12% in Billings, MT

Chicken (lb)

$2.01

$1.90

+6% in Billings, MT

Bananas (lb)

$0.70

$0.62

+12% in Billings, MT

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

State Taxes

Sales Tax (MT / AL)

None

+4.0 pp in AL

Income Tax (top rate)

5.65%

5.00%

+0.7 pp in MT

Billings vs Birmingham — FAQ

Is it cheaper to live in Billings or Birmingham?: Billings, MT is cheaper. Its monthly baseline of $1,030 (1BR rent + utilities) runs about 13% below Birmingham, AL's $1,190, mainly because of rent.
How much more do you need to earn to live in Billings than in Birmingham?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $36,000 a year in Billings versus $40,000 in Birmingham.
Which has lower taxes, Billings or Birmingham?: Billings is taxed under Montana's rules (a top state income tax rate of 5.65% and no state sales tax); Birmingham 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).