Is it cheaper to live in Frederick or Montgomery?

Montgomery, AL is cheaper. Its monthly baseline of $1,020 (1BR rent + utilities) runs about 38% below Frederick, MD's $1,650, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $57,000 a year in Frederick versus $33,000 in Montgomery.

Which has lower taxes, Frederick or Montgomery?

Frederick is taxed under Maryland's rules (a top state income tax rate of 6.50% and a 6% state sales tax); Montgomery under Alabama's (a top state income tax rate of 5.00% and a 4% state sales tax).

Frederick vs Montgomery Cost of Living 2026

Frederick

Maryland

$1,650/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 $1,650 in Frederick, MD versus $1,020 in Montgomery, AL. Overall, Montgomery, AL is roughly 38% cheaper to live in day-to-day than Frederick, MD, driven mainly by rent.

Median household income is $95,150 in Frederick, MD and $55,687 in Montgomery, AL — about 41% higher in Frederick, MD. Maryland has a top state income tax rate of 6.50% and a 6% state sales tax; Alabama has a top state income tax rate of 5.00% and a 4% state sales tax.

Frederick, MD

Montgomery, AL

Rent

Studio

$1,658

$864

+48% in Frederick, MD

1 Bedroom

$1,418

$831

+41% in Frederick, MD

2 Bedroom

$1,661

$982

+41% in Frederick, MD

3 Bedroom

$1,863

$1,172

+37% in Frederick, MD

Buying a Home

Median Home Value

$365,200

$148,500

+59% in Frederick, MD

Income

Median Household Income

$95,150

$55,687

+41% in Frederick, MD

Metro Median Wage (annual)

$71,060

$44,950

+37% in Frederick, MD

People & Lifestyle

Median Age

37.1 yr

36.2 yr

+0.9 yr in Frederick, MD

Homeownership

59.2%

54.3%

+4.9 pp in Frederick, MD

Bachelor's+ (25+)

41.8%

33.5%

+8.3 pp in Frederick, MD

Avg Commute

30.1 min

20.5 min

+9.6 min in Frederick, MD

Crime (per 100k/yr)

Violent Crime

406

605.5

+49% in Montgomery, AL

Property Crime

1,696.3

2,258.3

+33% 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

52.1°F

65.1°F

+13.0°F in Montgomery, AL

Annual Precipitation

—

53.1 in

Gas

Regular Gasoline

$3.94/gal

$3.62/gal

+8% in Frederick, MD

Area: East Coast (PADD 1) vs Gulf Coast (PADD 3).

Utilities

Electricity (¢/kWh)

21.8

16.4

+25% in Frederick, MD

Natural Gas ($/MCF)

$22.57

$24.06

+7% in Montgomery, AL

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

Groceries

Milk (gal)

$4.00

about equal

Bread (lb)

$1.75

about equal

Eggs (doz)

$2.21

about equal

Ground Beef (lb)

$6.45

about equal

Chicken (lb)

$1.90

about equal

Bananas (lb)

$0.62

about equal

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

State Taxes

Sales Tax (MD / AL)

+2.0 pp in MD

Income Tax (top rate)

6.50%

5.00%

+1.5 pp in MD

Frederick vs Montgomery — FAQ

Is it cheaper to live in Frederick or Montgomery?: Montgomery, AL is cheaper. Its monthly baseline of $1,020 (1BR rent + utilities) runs about 38% below Frederick, MD's $1,650, mainly because of rent.
How much more do you need to earn to live in Frederick than in Montgomery?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $57,000 a year in Frederick versus $33,000 in Montgomery.
Which has lower taxes, Frederick or Montgomery?: Frederick is taxed under Maryland's rules (a top state income tax rate of 6.50% and a 6% 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).