Is it cheaper to live in Denver or Montgomery?

Montgomery, AL is cheaper. Its monthly baseline of $1,020 (1BR rent + utilities) runs about 42% below Denver, CO's $1,760, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $63,000 a year in Denver versus $33,000 in Montgomery.

Which has lower taxes, Denver or Montgomery?

Denver is taxed under Colorado's rules (a top state income tax rate of 4.40% and a 2.9% state sales tax); Montgomery under Alabama's (a top state income tax rate of 5.00% and a 4% state sales tax).

Denver vs Montgomery Cost of Living 2026

Denver

Colorado

$1,760/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 $1,760 in Denver, CO versus $1,020 in Montgomery, AL. Overall, Montgomery, AL is roughly 42% cheaper to live in day-to-day than Denver, CO, driven mainly by rent.

Median household income is $91,681 in Denver, CO and $55,687 in Montgomery, AL — about 39% higher in Denver, CO. Colorado has a top state income tax rate of 4.40% and a 2.9% state sales tax; Alabama has a top state income tax rate of 5.00% and a 4% state sales tax.

Denver, CO

Montgomery, AL

Rent

Studio

$1,497

$864

+42% in Denver, CO

1 Bedroom

$1,583

$831

+48% in Denver, CO

2 Bedroom

$1,958

$982

+50% in Denver, CO

3 Bedroom

$2,269

$1,172

+48% in Denver, CO

Buying a Home

Median Home Value

$586,700

$148,500

+75% in Denver, CO

Income

Median Household Income

$91,681

$55,687

+39% in Denver, CO

Metro Median Wage (annual)

$62,320

$44,950

+28% in Denver, CO

People & Lifestyle

Median Age

35.2 yr

36.2 yr

+1.0 yr in Montgomery, AL

Homeownership

49.1%

54.3%

+5.2 pp in Montgomery, AL

Bachelor's+ (25+)

55.6%

33.5%

+22.1 pp in Denver, CO

Avg Commute

25.4 min

20.5 min

+4.9 min in Denver, CO

Crime (per 100k/yr)

Violent Crime

999.3

605.5

+39% in Denver, CO

Property Crime

4,781.1

2,258.3

+53% in Denver, CO

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

Climate

Avg Annual Temperature

50.2°F

65.1°F

+14.9°F in Montgomery, AL

Annual Precipitation

15.6 in

53.1 in

+37.5 in in Montgomery, AL

Gas

Regular Gasoline

$4.16/gal

$3.62/gal

+13% in Denver, CO

Area: Denver vs Gulf Coast (PADD 3).

Public Transit

Base Fare (one-way)

$2.75

—

Adult base one-way fare — RTD vs — (2026).

Utilities

Electricity (¢/kWh)

17.1

16.4

+4% in Denver, CO

Natural Gas ($/MCF)

$15.05

$24.06

+60% in Montgomery, AL

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

Groceries

Milk (gal)

$4.82

$4.00

+17% in Denver, CO

Bread (lb)

$2.04

$1.75

+14% in Denver, CO

Eggs (doz)

$2.19

$2.21

+1% in Montgomery, AL

Ground Beef (lb)

$7.36

$6.45

+12% in Denver, CO

Chicken (lb)

$2.01

$1.90

+6% in Denver, CO

Bananas (lb)

$0.70

$0.62

+12% in Denver, CO

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

State Taxes

Sales Tax (CO / AL)

2.9%

+1.1 pp in AL

Income Tax (top rate)

4.40%

5.00%

+0.6 pp in AL

Denver vs Montgomery — FAQ

Is it cheaper to live in Denver or Montgomery?: Montgomery, AL is cheaper. Its monthly baseline of $1,020 (1BR rent + utilities) runs about 42% below Denver, CO's $1,760, mainly because of rent.
How much more do you need to earn to live in Denver than in Montgomery?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $63,000 a year in Denver versus $33,000 in Montgomery.
Which has lower taxes, Denver or Montgomery?: Denver is taxed under Colorado's rules (a top state income tax rate of 4.40% and a 2.9% 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).