Is it cheaper to live in Birmingham or Missoula?

Missoula, MT is cheaper. Its monthly baseline of $1,100 (1BR rent + utilities) runs about 8% below Birmingham, AL's $1,190, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $40,000 a year in Birmingham versus $38,000 in Missoula.

Which has lower taxes, Birmingham or Missoula?

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

Birmingham vs Missoula Cost of Living 2026

Birmingham

Alabama

$1,190/mo est.

Missoula

Montana

$1,100/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 $1,100 in Missoula, MT. Overall, Missoula, MT is roughly 8% cheaper to live in day-to-day than Birmingham, AL, driven mainly by rent.

Median household income is $44,376 in Birmingham, AL and $65,329 in Missoula, MT — about 32% higher in Missoula, 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

Missoula, MT

Rent

Studio

$857

$755

+12% in Birmingham, AL

1 Bedroom

$1,004

$953

+5% in Birmingham, AL

2 Bedroom

$1,005

$1,176

+17% in Missoula, MT

3 Bedroom

$1,188

$1,676

+41% in Missoula, MT

Buying a Home

Median Home Value

$138,600

$427,400

+208% in Missoula, MT

Income

Median Household Income

$44,376

$65,329

+47% in Missoula, MT

Metro Median Wage (annual)

$47,770

$47,830

+0% in Missoula, MT

People & Lifestyle

Median Age

35.9 yr

34.3 yr

+1.6 yr in Birmingham, AL

Homeownership

45.1%

47.8%

+2.7 pp in Missoula, MT

Bachelor's+ (25+)

30.7%

51.7%

+21.0 pp in Missoula, MT

Avg Commute

21.5 min

16.6 min

+4.9 min in Birmingham, AL

Crime (per 100k/yr)

Violent Crime

1,274.7

601.9

+53% in Birmingham, AL

Property Crime

4,233

3,685.2

+13% 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

45.9°F

+17.4°F in Birmingham, AL

Annual Precipitation

53.7 in

14.1 in

+39.6 in in Birmingham, AL

Gas

Regular Gasoline

$3.62/gal

$4.27/gal

+18% in Missoula, 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 Missoula, MT

Bread (lb)

$1.75

$2.04

+17% in Missoula, MT

Eggs (doz)

$2.21

$2.19

+1% in Birmingham, AL

Ground Beef (lb)

$6.45

$7.36

+14% in Missoula, MT

Chicken (lb)

$1.90

$2.01

+6% in Missoula, MT

Bananas (lb)

$0.62

$0.70

+14% in Missoula, 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 Missoula — FAQ

Is it cheaper to live in Birmingham or Missoula?: Missoula, MT is cheaper. Its monthly baseline of $1,100 (1BR rent + utilities) runs about 8% below Birmingham, AL's $1,190, mainly because of rent.
How much more do you need to earn to live in Birmingham than in Missoula?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $40,000 a year in Birmingham versus $38,000 in Missoula.
Which has lower taxes, Birmingham or Missoula?: Birmingham is taxed under Alabama's rules (a top state income tax rate of 5.00% and a 4% state sales tax); Missoula 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).