Is it cheaper to live in Montgomery or Omaha?

Montgomery, AL is cheaper. Its monthly baseline of $1,020 (1BR rent + utilities) runs about 11% below Omaha, NE's $1,140, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $33,000 a year in Montgomery versus $39,000 in Omaha.

Which has lower taxes, Montgomery or Omaha?

Montgomery is taxed under Alabama's rules (a top state income tax rate of 5.00% and a 4% state sales tax); Omaha under Nebraska's (a top state income tax rate of 4.55% and a 5.5% state sales tax).

Montgomery vs Omaha Cost of Living 2026

Montgomery

Alabama

$1,020/mo est.

Omaha

Nebraska

$1,140/mo est.

Monthly estimate = 1BR rent + electricity + gas

A one-person monthly baseline (1BR rent plus typical utilities) runs $1,020 in Montgomery, AL versus $1,140 in Omaha, NE. Overall, Montgomery, AL is roughly 11% cheaper to live in day-to-day than Omaha, NE, driven mainly by rent.

Median household income is $55,687 in Montgomery, AL and $72,708 in Omaha, NE — about 23% higher in Omaha, NE. Alabama has a top state income tax rate of 5.00% and a 4% state sales tax; Nebraska has a top state income tax rate of 4.55% and a 5.5% state sales tax.

Montgomery, AL

Omaha, NE

Rent

Studio

$864

$908

+5% in Omaha, NE

1 Bedroom

$831

$984

+18% in Omaha, NE

2 Bedroom

$982

$1,193

+21% in Omaha, NE

3 Bedroom

$1,172

$1,437

+23% in Omaha, NE

Buying a Home

Median Home Value

$148,500

$230,100

+55% in Omaha, NE

Income

Median Household Income

$55,687

$72,708

+31% in Omaha, NE

Metro Median Wage (annual)

$44,950

$49,660

+10% in Omaha, NE

People & Lifestyle

Median Age

36.2 yr

35.3 yr

+0.9 yr in Montgomery, AL

Homeownership

54.3%

57.7%

+3.4 pp in Omaha, NE

Bachelor's+ (25+)

33.5%

40.3%

+6.8 pp in Omaha, NE

Avg Commute

20.5 min

19.6 min

+0.9 min in Montgomery, AL

Crime (per 100k/yr)

Violent Crime

605.5

359

+41% in Montgomery, AL

Property Crime

2,258.3

3,153.5

+40% in Omaha, NE

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

Climate

Avg Annual Temperature

65.1°F

51.1°F

+14.0°F in Montgomery, AL

Annual Precipitation

53.1 in

30.6 in

+22.4 in in Montgomery, AL

Gas

Regular Gasoline

$3.62/gal

$3.85/gal

+6% in Omaha, NE

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

Public Transit

Base Fare (one-way)

—

$1.25

Adult base one-way fare — — vs Metro Transit (Omaha) (2026).

Utilities

Electricity (¢/kWh)

16.4

13.3

+19% in Montgomery, AL

Natural Gas ($/MCF)

$24.06

$20.10

+16% in Montgomery, AL

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

Groceries

Milk (gal)

$4.00

$4.31

+8% in Omaha, NE

Bread (lb)

$1.75

$1.66

+5% in Montgomery, AL

Eggs (doz)

$2.21

$3.63

+64% in Omaha, NE

Ground Beef (lb)

$6.45

$6.77

+5% in Omaha, NE

Chicken (lb)

$1.90

$2.10

+10% in Omaha, NE

Bananas (lb)

$0.62

about equal

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

State Taxes

Sales Tax (AL / NE)

5.5%

+1.5 pp in NE

Income Tax (top rate)

5.00%

4.55%

+0.5 pp in AL

Montgomery vs Omaha — FAQ

Is it cheaper to live in Montgomery or Omaha?: Montgomery, AL is cheaper. Its monthly baseline of $1,020 (1BR rent + utilities) runs about 11% below Omaha, NE's $1,140, mainly because of rent.
How much more do you need to earn to live in Montgomery than in Omaha?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $33,000 a year in Montgomery versus $39,000 in Omaha.
Which has lower taxes, Montgomery or Omaha?: Montgomery is taxed under Alabama's rules (a top state income tax rate of 5.00% and a 4% state sales tax); Omaha under Nebraska's (a top state income tax rate of 4.55% and a 5.5% 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).