Is it cheaper to live in Montgomery or Paterson?

Montgomery, AL is cheaper. Its monthly baseline of $1,020 (1BR rent + utilities) runs about 29% below Paterson, NJ's $1,430, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $33,000 a year in Montgomery versus $47,000 in Paterson.

Which has lower taxes, Montgomery or Paterson?

Montgomery is taxed under Alabama's rules (a top state income tax rate of 5.00% and a 4% state sales tax); Paterson under New Jersey's (a top state income tax rate of 10.75% and a 6.625% state sales tax).

Montgomery vs Paterson Cost of Living 2026

Montgomery

Alabama

$1,020/mo est.

Paterson

New Jersey

$1,430/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 $1,430 in Paterson, NJ. Overall, Montgomery, AL is roughly 29% cheaper to live in day-to-day than Paterson, NJ, driven mainly by rent.

Median household income is $55,687 in Montgomery, AL and $53,766 in Paterson, NJ — about 3% higher in Montgomery, AL. Alabama has a top state income tax rate of 5.00% and a 4% state sales tax; New Jersey has a top state income tax rate of 10.75% and a 6.625% state sales tax.

Montgomery, AL

Paterson, NJ

Rent

Studio

$864

$786

+9% in Montgomery, AL

1 Bedroom

$831

$1,183

+42% in Paterson, NJ

2 Bedroom

$982

$1,468

+49% in Paterson, NJ

3 Bedroom

$1,172

$1,729

+48% in Paterson, NJ

Buying a Home

Median Home Value

$148,500

$335,400

+126% in Paterson, NJ

Income

Median Household Income

$55,687

$53,766

+3% in Montgomery, AL

Metro Median Wage (annual)

$44,950

$61,430

+37% in Paterson, NJ

People & Lifestyle

Median Age

36.2 yr

33.3 yr

+2.9 yr in Montgomery, AL

Homeownership

54.3%

26.2%

+28.1 pp in Montgomery, AL

Bachelor's+ (25+)

33.5%

12.5%

+21.0 pp in Montgomery, AL

Avg Commute

20.5 min

23.1 min

+2.6 min in Paterson, NJ

Crime (per 100k/yr)

Violent Crime

605.5

1,010.1

+67% in Paterson, NJ

Property Crime

2,258.3

2,391.4

+6% in Paterson, NJ

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

52.2°F

+12.9°F in Montgomery, AL

Annual Precipitation

53.1 in

49.0 in

+4.0 in in Montgomery, AL

Gas

Regular Gasoline

$3.62/gal

$3.94/gal

+9% in Paterson, NJ

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

Utilities

Electricity (¢/kWh)

16.4

24.9

+52% in Paterson, NJ

Natural Gas ($/MCF)

$24.06

$17.68

+27% in Montgomery, AL

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

Groceries

Milk (gal)

$4.00

$4.31

+8% in Paterson, NJ

Bread (lb)

$1.75

$1.92

+10% in Paterson, NJ

Eggs (doz)

$2.21

$2.19

+1% in Montgomery, AL

Ground Beef (lb)

$6.45

$6.90

+7% in Paterson, NJ

Chicken (lb)

$1.90

$2.19

+15% in Paterson, NJ

Bananas (lb)

$0.62

$0.69

+12% in Paterson, NJ

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

State Taxes

Sales Tax (AL / NJ)

6.625%

+2.6 pp in NJ

Income Tax (top rate)

5.00%

10.75%

+5.8 pp in NJ

Montgomery vs Paterson — FAQ

Is it cheaper to live in Montgomery or Paterson?: Montgomery, AL is cheaper. Its monthly baseline of $1,020 (1BR rent + utilities) runs about 29% below Paterson, NJ's $1,430, mainly because of rent.
How much more do you need to earn to live in Montgomery than in Paterson?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $33,000 a year in Montgomery versus $47,000 in Paterson.
Which has lower taxes, Montgomery or Paterson?: Montgomery is taxed under Alabama's rules (a top state income tax rate of 5.00% and a 4% state sales tax); Paterson under New Jersey's (a top state income tax rate of 10.75% and a 6.625% 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).