Is it cheaper to live in Birmingham or Bozeman?

Birmingham, AL is cheaper. Its monthly baseline of $1,190 (1BR rent + utilities) runs about 13% below Bozeman, MT's $1,360, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $40,000 a year in Birmingham versus $49,000 in Bozeman.

Which has lower taxes, Birmingham or Bozeman?

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

Birmingham vs Bozeman Cost of Living 2026

Birmingham

Alabama

$1,190/mo est.

Bozeman

Montana

$1,360/mo est.

Monthly estimate = 1BR rent + electricity + gas

A one-person monthly baseline (1BR rent plus typical utilities) runs $1,190 in Birmingham, AL versus $1,360 in Bozeman, MT. Overall, Birmingham, AL is roughly 13% cheaper to live in day-to-day than Bozeman, MT, driven mainly by rent.

Median household income is $44,376 in Birmingham, AL and $79,903 in Bozeman, MT — about 44% higher in Bozeman, MT. Alabama has a top state income tax rate of 5.00% and a 4% state sales tax; Montana has a top state income tax rate of 5.65% and no state sales tax.

Birmingham, AL

Bozeman, MT

Rent

Studio

$857

$1,064

+24% in Bozeman, MT

1 Bedroom

$1,004

$1,214

+21% in Bozeman, MT

2 Bedroom

$1,005

$1,528

+52% in Bozeman, MT

3 Bedroom

$1,188

$2,057

+73% in Bozeman, MT

Buying a Home

Median Home Value

$138,600

$614,900

+344% in Bozeman, MT

Income

Median Household Income

$44,376

$79,903

+80% in Bozeman, MT

Metro Median Wage (annual)

$47,770

$54,830

+15% in Bozeman, MT

People & Lifestyle

Median Age

35.9 yr

28.6 yr

+7.3 yr in Birmingham, AL

Homeownership

45.1%

44.6%

+0.5 pp in Birmingham, AL

Bachelor's+ (25+)

30.7%

65.1%

+34.4 pp in Bozeman, MT

Avg Commute

21.5 min

15.4 min

+6.1 min in Birmingham, AL

Crime (per 100k/yr)

Violent Crime

1,274.7

451.2

+65% in Birmingham, AL

Property Crime

4,233

1,808.3

+57% 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

63.3°F

45.3°F

+18.0°F in Birmingham, AL

Annual Precipitation

53.7 in

14.0 in

+39.7 in in Birmingham, AL

Gas

Regular Gasoline

$3.62/gal

$4.27/gal

+18% in Bozeman, MT

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

Utilities

Electricity (¢/kWh)

16.4

15.1

+8% in Birmingham, AL

Natural Gas ($/MCF)

$24.06

$10.12

+58% in Birmingham, AL

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

Groceries

Milk (gal)

$4.00

$4.82

+20% in Bozeman, MT

Bread (lb)

$1.75

$2.04

+17% in Bozeman, MT

Eggs (doz)

$2.21

$2.19

+1% in Birmingham, AL

Ground Beef (lb)

$6.45

$7.36

+14% in Bozeman, MT

Chicken (lb)

$1.90

$2.01

+6% in Bozeman, MT

Bananas (lb)

$0.62

$0.70

+14% in Bozeman, MT

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

State Taxes

Sales Tax (AL / MT)

None

+4.0 pp in AL

Income Tax (top rate)

5.00%

5.65%

+0.7 pp in MT

Birmingham vs Bozeman — FAQ

Is it cheaper to live in Birmingham or Bozeman?: Birmingham, AL is cheaper. Its monthly baseline of $1,190 (1BR rent + utilities) runs about 13% below Bozeman, MT's $1,360, mainly because of rent.
How much more do you need to earn to live in Birmingham than in Bozeman?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $40,000 a year in Birmingham versus $49,000 in Bozeman.
Which has lower taxes, Birmingham or Bozeman?: Birmingham is taxed under Alabama's rules (a top state income tax rate of 5.00% and a 4% state sales tax); Bozeman under Montana's (a top state income tax rate of 5.65% and no 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).