Living Cost Compare
Montgomery

Alabama

$1,020/mo est.

vs
Santa Fe

New Mexico

$1,310/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 $1,310 in Santa Fe, NM. Overall, Montgomery, AL is roughly 22% cheaper to live in day-to-day than Santa Fe, NM, driven mainly by rent.

Median household income is $55,687 in Montgomery, AL and $70,110 in Santa Fe, NM — about 21% higher in Santa Fe, NM. Alabama has a top state income tax rate of 5.00% and a 4% state sales tax; New Mexico has a top state income tax rate of 5.90% and a 4.875% state sales tax.

Montgomery, AL
Santa Fe, NM

Rent

Studio
$864
$969
+12% in Santa Fe, NM
1 Bedroom
$831
$1,167
+40% in Santa Fe, NM
2 Bedroom
$982
$1,559
+59% in Santa Fe, NM
3 Bedroom
$1,172
$1,733
+48% in Santa Fe, NM

Buying a Home

Median Home Value
$148,500
$411,500
+177% in Santa Fe, NM

Income

Median Household Income
$55,687
$70,110
+26% in Santa Fe, NM
Metro Median Wage (annual)
$44,950
$48,710
+8% in Santa Fe, NM

People & Lifestyle

Median Age
36.2 yr
46.4 yr
+10.2 yr in Santa Fe, NM
Homeownership
54.3%
62.8%
+8.5 pp in Santa Fe, NM
Bachelor's+ (25+)
33.5%
45.4%
+11.9 pp in Santa Fe, NM
Avg Commute
20.5 min
20.2 min
+0.3 min in Montgomery, AL

Crime (per 100k/yr)

Violent Crime
605.5
843.3
+39% in Santa Fe, NM
Property Crime
2,258.3
5,189
+130% in Santa Fe, NM

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
51.9°F
+13.2°F in Montgomery, AL
Annual Precipitation
53.1 in
13.5 in
+39.6 in in Montgomery, AL

Gas

Regular Gasoline
$3.62/gal
$3.62/gal
about equal

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

Utilities

Electricity (¢/kWh)
16.4
15.1
+8% in Montgomery, AL
Natural Gas ($/MCF)
$24.06
$9.31
+61% in Montgomery, AL

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

Groceries

Milk (gal)
$4.00
$4.82
+20% in Santa Fe, NM
Bread (lb)
$1.75
$2.04
+17% in Santa Fe, NM
Eggs (doz)
$2.21
$2.19
+1% in Montgomery, AL
Ground Beef (lb)
$6.45
$7.36
+14% in Santa Fe, NM
Chicken (lb)
$1.90
$2.01
+6% in Santa Fe, NM
Bananas (lb)
$0.62
$0.70
+14% in Santa Fe, NM

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

State Taxes

Sales Tax (AL / NM)
4%
4.875%
+0.9 pp in NM
Income Tax (top rate)
5.00%
5.90%
+0.9 pp in NM

Montgomery vs Santa Fe — FAQ

Is it cheaper to live in Montgomery or Santa Fe?
Montgomery, AL is cheaper. Its monthly baseline of $1,020 (1BR rent + utilities) runs about 22% below Santa Fe, NM's $1,310, mainly because of rent.
How much more do you need to earn to live in Montgomery than in Santa Fe?
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 Santa Fe.
Which has lower taxes, Montgomery or Santa Fe?
Montgomery is taxed under Alabama's rules (a top state income tax rate of 5.00% and a 4% state sales tax); Santa Fe under New Mexico's (a top state income tax rate of 5.90% and a 4.875% 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).