Is it cheaper to live in Memphis or Montgomery?

Montgomery, AL is cheaper. Its monthly baseline of $1,020 (1BR rent + utilities) runs about 8% below Memphis, TN's $1,110, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $38,000 a year in Memphis versus $33,000 in Montgomery.

Which has lower taxes, Memphis or Montgomery?

Memphis is taxed under Tennessee's rules (no state income tax and a 7% state sales tax); Montgomery under Alabama's (a top state income tax rate of 5.00% and a 4% state sales tax).

Memphis vs Montgomery Cost of Living 2026

Memphis

Tennessee

$1,110/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 $1,110 in Memphis, TN versus $1,020 in Montgomery, AL. Overall, Montgomery, AL is roughly 8% cheaper to live in day-to-day than Memphis, TN, driven mainly by rent.

Median household income is $51,211 in Memphis, TN and $55,687 in Montgomery, AL — about 8% higher in Montgomery, AL. Tennessee has no state income tax and a 7% state sales tax; Alabama has a top state income tax rate of 5.00% and a 4% state sales tax.

Memphis, TN

Montgomery, AL

Rent

Studio

$877

$864

+1% in Memphis, TN

1 Bedroom

$948

$831

+12% in Memphis, TN

2 Bedroom

$1,073

$982

+8% in Memphis, TN

3 Bedroom

$1,281

$1,172

+9% in Memphis, TN

Buying a Home

Median Home Value

$157,100

$148,500

+5% in Memphis, TN

Income

Median Household Income

$51,211

$55,687

+9% in Montgomery, AL

Metro Median Wage (annual)

$46,890

$44,950

+4% in Memphis, TN

People & Lifestyle

Median Age

34.3 yr

36.2 yr

+1.9 yr in Montgomery, AL

Homeownership

46.0%

54.3%

+8.3 pp in Montgomery, AL

Bachelor's+ (25+)

28.2%

33.5%

+5.3 pp in Montgomery, AL

Avg Commute

21.3 min

20.5 min

+0.8 min in Memphis, TN

Crime (per 100k/yr)

Violent Crime

2,507.6

605.5

+76% in Memphis, TN

Property Crime

6,966.3

2,258.3

+68% in Memphis, TN

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

Climate

Avg Annual Temperature

63.1°F

65.1°F

+2.0°F in Montgomery, AL

Annual Precipitation

53.7 in

53.1 in

+0.6 in in Memphis, TN

Gas

Regular Gasoline

$3.85/gal

$3.62/gal

+6% in Memphis, TN

Area: Midwest (PADD 2) vs Gulf Coast (PADD 3).

Public Transit

Base Fare (one-way)

$1.75

—

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

Utilities

Electricity (¢/kWh)

14.1

16.4

+17% in Montgomery, AL

Natural Gas ($/MCF)

$19.75

$24.06

+22% 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 (TN / AL)

+3.0 pp in TN

Income Tax (top rate)

None

5.00%

+5.0 pp in AL

Memphis vs Montgomery — FAQ

Is it cheaper to live in Memphis or Montgomery?: Montgomery, AL is cheaper. Its monthly baseline of $1,020 (1BR rent + utilities) runs about 8% below Memphis, TN's $1,110, mainly because of rent.
How much more do you need to earn to live in Memphis than in Montgomery?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $38,000 a year in Memphis versus $33,000 in Montgomery.
Which has lower taxes, Memphis or Montgomery?: Memphis is taxed under Tennessee's rules (no state income tax and a 7% 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).