Is it cheaper to live in Laramie or Montgomery?

Laramie, WY is cheaper. Its monthly baseline of $890 (1BR rent + utilities) runs about 13% below Montgomery, AL's $1,020, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $29,000 a year in Laramie versus $33,000 in Montgomery.

Which has lower taxes, Laramie or Montgomery?

Laramie is taxed under Wyoming's rules (no state income tax and a 4% state sales tax); Montgomery under Alabama's (a top state income tax rate of 5.00% and a 4% state sales tax).

Laramie vs Montgomery Cost of Living 2026

Laramie

Wyoming

$890/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 $890 in Laramie, WY versus $1,020 in Montgomery, AL. Overall, Laramie, WY is roughly 13% cheaper to live in day-to-day than Montgomery, AL, driven mainly by rent.

Median household income is $52,414 in Laramie, WY and $55,687 in Montgomery, AL — about 6% higher in Montgomery, AL. Wyoming has no state income tax and a 4% state sales tax; Alabama has a top state income tax rate of 5.00% and a 4% state sales tax.

Laramie, WY

Montgomery, AL

Rent

Studio

$667

$864

+30% in Montgomery, AL

1 Bedroom

$728

$831

+14% in Montgomery, AL

2 Bedroom

$883

$982

+11% in Montgomery, AL

3 Bedroom

$1,423

$1,172

+18% in Laramie, WY

Buying a Home

Median Home Value

$302,200

$148,500

+51% in Laramie, WY

Income

Median Household Income

$52,414

$55,687

+6% in Montgomery, AL

Metro Median Wage (annual)

—

$44,950

People & Lifestyle

Median Age

26.9 yr

36.2 yr

+9.3 yr in Montgomery, AL

Homeownership

44.1%

54.3%

+10.2 pp in Montgomery, AL

Bachelor's+ (25+)

55.8%

33.5%

+22.3 pp in Laramie, WY

Avg Commute

13.5 min

20.5 min

+7.0 min in Montgomery, AL

Crime (per 100k/yr)

Violent Crime

129.6

605.5

+367% in Montgomery, AL

Property Crime

1,175.9

2,258.3

+92% 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

41.0°F

65.1°F

+24.1°F in Montgomery, AL

Annual Precipitation

10.9 in

53.1 in

+42.1 in in Montgomery, AL

Gas

Regular Gasoline

$4.27/gal

$3.62/gal

+15% in Laramie, WY

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

Utilities

Electricity (¢/kWh)

15.2

16.4

+8% in Montgomery, AL

Natural Gas ($/MCF)

$18.28

$24.06

+32% in Montgomery, AL

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

Groceries

Milk (gal)

$4.82

$4.00

+17% in Laramie, WY

Bread (lb)

$2.04

$1.75

+14% in Laramie, WY

Eggs (doz)

$2.19

$2.21

+1% in Montgomery, AL

Ground Beef (lb)

$7.36

$6.45

+12% in Laramie, WY

Chicken (lb)

$2.01

$1.90

+6% in Laramie, WY

Bananas (lb)

$0.70

$0.62

+12% in Laramie, WY

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

State Taxes

Sales Tax (WY / AL)

about equal

Income Tax (top rate)

None

5.00%

+5.0 pp in AL

Laramie vs Montgomery — FAQ

Is it cheaper to live in Laramie or Montgomery?: Laramie, WY is cheaper. Its monthly baseline of $890 (1BR rent + utilities) runs about 13% below Montgomery, AL's $1,020, mainly because of rent.
How much more do you need to earn to live in Laramie than in Montgomery?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $29,000 a year in Laramie versus $33,000 in Montgomery.
Which has lower taxes, Laramie or Montgomery?: Laramie is taxed under Wyoming's rules (no state income tax and a 4% 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).