Is it cheaper to live in Montgomery or Rapid City?

Rapid City, SD is cheaper. Its monthly baseline of $970 (1BR rent + utilities) runs about 5% below Montgomery, AL's $1,020, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $33,000 a year in Montgomery versus $32,000 in Rapid City.

Which has lower taxes, Montgomery or Rapid City?

Montgomery is taxed under Alabama's rules (a top state income tax rate of 5.00% and a 4% state sales tax); Rapid City under South Dakota's (no state income tax and a 4.2% state sales tax).

Montgomery vs Rapid City Cost of Living 2026

Montgomery

Alabama

$1,020/mo est.

Rapid City

South Dakota

$970/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 $970 in Rapid City, SD. Overall, Rapid City, SD is roughly 5% cheaper to live in day-to-day than Montgomery, AL, driven mainly by rent.

Median household income is $55,687 in Montgomery, AL and $65,712 in Rapid City, SD — about 15% higher in Rapid City, SD. Alabama has a top state income tax rate of 5.00% and a 4% state sales tax; South Dakota has no state income tax and a 4.2% state sales tax.

Montgomery, AL

Rapid City, SD

Rent

Studio

$864

$533

+38% in Montgomery, AL

1 Bedroom

$831

$807

+3% in Montgomery, AL

2 Bedroom

$982

$1,156

+18% in Rapid City, SD

3 Bedroom

$1,172

$1,260

+8% in Rapid City, SD

Buying a Home

Median Home Value

$148,500

$270,000

+82% in Rapid City, SD

Income

Median Household Income

$55,687

$65,712

+18% in Rapid City, SD

Metro Median Wage (annual)

$44,950

$46,270

+3% in Rapid City, SD

People & Lifestyle

Median Age

36.2 yr

39.0 yr

+2.8 yr in Rapid City, SD

Homeownership

54.3%

61.6%

+7.3 pp in Rapid City, SD

Bachelor's+ (25+)

33.5%

36.4%

+2.9 pp in Rapid City, SD

Avg Commute

20.5 min

17.4 min

+3.1 min in Montgomery, AL

Crime (per 100k/yr)

Violent Crime

605.5

718.9

+19% in Rapid City, SD

Property Crime

2,258.3

3,795.8

+68% in Rapid City, SD

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

47.1°F

+18.0°F in Montgomery, AL

Annual Precipitation

53.1 in

16.3 in

+36.8 in in Montgomery, AL

Gas

Regular Gasoline

$3.62/gal

$3.85/gal

+6% in Rapid City, SD

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

Utilities

Electricity (¢/kWh)

16.4

15.4

+6% in Montgomery, AL

Natural Gas ($/MCF)

$24.06

$15.26

+37% in Montgomery, AL

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

Groceries

Milk (gal)

$4.00

$4.31

+8% in Rapid City, SD

Bread (lb)

$1.75

$1.66

+5% in Montgomery, AL

Eggs (doz)

$2.21

$3.63

+64% in Rapid City, SD

Ground Beef (lb)

$6.45

$6.77

+5% in Rapid City, SD

Chicken (lb)

$1.90

$2.10

+10% in Rapid City, SD

Bananas (lb)

$0.62

about equal

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

State Taxes

Sales Tax (AL / SD)

4.2%

+0.2 pp in SD

Income Tax (top rate)

5.00%

None

+5.0 pp in AL

Montgomery vs Rapid City — FAQ

Is it cheaper to live in Montgomery or Rapid City?: Rapid City, SD is cheaper. Its monthly baseline of $970 (1BR rent + utilities) runs about 5% below Montgomery, AL's $1,020, mainly because of rent.
How much more do you need to earn to live in Montgomery than in Rapid City?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $33,000 a year in Montgomery versus $32,000 in Rapid City.
Which has lower taxes, Montgomery or Rapid City?: Montgomery is taxed under Alabama's rules (a top state income tax rate of 5.00% and a 4% state sales tax); Rapid City under South Dakota's (no state income tax and a 4.2% 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).