Is it cheaper to live in Montgomery or Salem?

Montgomery, AL is cheaper. Its monthly baseline of $1,020 (1BR rent + utilities) runs about 13% below Salem, OR's $1,170, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $33,000 a year in Montgomery versus $40,000 in Salem.

Which has lower taxes, Montgomery or Salem?

Montgomery is taxed under Alabama's rules (a top state income tax rate of 5.00% and a 4% state sales tax); Salem under Oregon's (a top state income tax rate of 9.90% and no state sales tax).

Montgomery vs Salem Cost of Living 2026

Montgomery

Alabama

$1,020/mo est.

Salem

Oregon

$1,170/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 $1,170 in Salem, OR. Overall, Montgomery, AL is roughly 13% cheaper to live in day-to-day than Salem, OR, driven mainly by rent.

Median household income is $55,687 in Montgomery, AL and $71,900 in Salem, OR — about 23% higher in Salem, OR. Alabama has a top state income tax rate of 5.00% and a 4% state sales tax; Oregon has a top state income tax rate of 9.90% and no state sales tax.

Montgomery, AL

Salem, OR

Rent

Studio

$864

$1,075

+24% in Salem, OR

1 Bedroom

$831

$989

+19% in Salem, OR

2 Bedroom

$982

$1,337

+36% in Salem, OR

3 Bedroom

$1,172

$1,778

+52% in Salem, OR

Buying a Home

Median Home Value

$148,500

$382,400

+158% in Salem, OR

Income

Median Household Income

$55,687

$71,900

+29% in Salem, OR

Metro Median Wage (annual)

$44,950

$55,310

+23% in Salem, OR

People & Lifestyle

Median Age

36.2 yr

35.7 yr

+0.5 yr in Montgomery, AL

Homeownership

54.3%

55.7%

+1.4 pp in Salem, OR

Bachelor's+ (25+)

33.5%

31.4%

+2.1 pp in Montgomery, AL

Avg Commute

20.5 min

22.4 min

+1.9 min in Salem, OR

Crime (per 100k/yr)

Violent Crime

605.5

540.6

+11% in Montgomery, AL

Property Crime

2,258.3

2,878.6

+27% in Salem, OR

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

53.0°F

+12.1°F in Montgomery, AL

Annual Precipitation

53.1 in

39.7 in

+13.4 in in Montgomery, AL

Gas

Regular Gasoline

$3.62/gal

$5.21/gal

+44% in Salem, OR

Area: Gulf Coast (PADD 3) vs West Coast (PADD 5).

Utilities

Electricity (¢/kWh)

16.4

16.3

+0% in Montgomery, AL

Natural Gas ($/MCF)

$24.06

$21.60

+10% in Montgomery, AL

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

Groceries

Milk (gal)

$4.00

$4.82

+20% in Salem, OR

Bread (lb)

$1.75

$2.04

+17% in Salem, OR

Eggs (doz)

$2.21

$2.19

+1% in Montgomery, AL

Ground Beef (lb)

$6.45

$7.36

+14% in Salem, OR

Chicken (lb)

$1.90

$2.01

+6% in Salem, OR

Bananas (lb)

$0.62

$0.70

+14% in Salem, OR

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

State Taxes

Sales Tax (AL / OR)

None

+4.0 pp in AL

Income Tax (top rate)

5.00%

9.90%

+4.9 pp in OR

Montgomery vs Salem — FAQ

Is it cheaper to live in Montgomery or Salem?: Montgomery, AL is cheaper. Its monthly baseline of $1,020 (1BR rent + utilities) runs about 13% below Salem, OR's $1,170, mainly because of rent.
How much more do you need to earn to live in Montgomery than in Salem?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $33,000 a year in Montgomery versus $40,000 in Salem.
Which has lower taxes, Montgomery or Salem?: Montgomery is taxed under Alabama's rules (a top state income tax rate of 5.00% and a 4% state sales tax); Salem under Oregon's (a top state income tax rate of 9.90% and no 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).