City Comparison

Alexandria vs Montgomery

Cost of Living Comparison · 2026

Alexandria

Virginia
145
Expensive
$590,000
Median Home
$2,125/mo
Median Rent
$119,700
Median Income

Montgomery

Alabama
79
Very Affordable
$162,000
Median Home
$1,000/mo
Median Rent
$56,800
Median Income

The Verdict

83.5%

The cost gap between these cities is 83.5%, with Montgomery being the more affordable option. A $75,000 income in Alexandria has equivalent purchasing power to $40,862 in Montgomery.

Category-by-Category Breakdown

Index values · National average = 100 · Lower is more affordable

Housing
201
Alexandria
49
Montgomery
Groceries
113
Alexandria
99
Montgomery
Utilities
97
Alexandria
115
Montgomery
Transportation
107
Alexandria
92
Montgomery
Healthcare
102
Alexandria
78
Montgomery

Salary Equivalence

A $75,000 salary in Alexandria has the same purchasing power as $40,862 in Montgomery.

Conversely, $75,000 in Montgomery equals $137,658 in Alexandria.

Living in Alexandria vs Montgomery

Housing Costs

Alexandria's housing index of 201 is higher Montgomery's 49, translating to median home prices of $590,000 vs $162,000. The $428,000 difference in home prices means roughly $27,816 per year in additional mortgage costs at current rates. Renters face a similar gap: $2,125/mo in Alexandria compared to $1,000/mo in Montgomery, a monthly difference of $1,125.

Grocery & Food Costs

Grocery expenses index at 113 in Alexandria and 99 in Montgomery. A household spending the national average of $475/month on groceries would pay approximately $537/month in Alexandria vs $470/month in Montgomery. Montgomery offers a meaningful advantage on everyday food costs, saving roughly $804/year.

Utility Expenses

Utility costs — electricity, gas, water, internet — index at 97 in Alexandria and 115 in Montgomery. Monthly utility bills average approximately $388 in Alexandria vs $460 in Montgomery. Climate differences between the two cities drive much of this gap, with heating and cooling costs varying substantially by region.

Healthcare

Healthcare costs index at 102 in Alexandria and 78 in Montgomery. This encompasses insurance premiums, doctor visit copays, dental care, and prescription costs. The 24-point gap reflects real differences in provider costs, insurance market competition, and regional healthcare infrastructure.

Income & Purchasing Power

Median household income is $119,700 in Alexandria and $56,800 in Montgomery. After adjusting for local costs, purchasing-power-equivalent incomes are approximately $82,552 and $71,899 respectively. Alexandria residents enjoy stronger real purchasing power despite higher nominal wages.

Relocation Considerations

Under the standard 28% rule, a median-income household can allocate $2,793/month to housing in Alexandria vs $1,325/month in Montgomery. In Alexandria, median rent of $2,125/mo fits within this budget. In Montgomery, median rent of $1,000/mo remains manageable. The biggest category-level difference between these two cities is Housing, where the gap is 152 index points — focus your budget analysis there.

Frequently Asked Questions

Montgomery is 83.5% more affordable overall with an index of 79 vs 145.
A $75,000 salary in Alexandria has equivalent purchasing power to approximately $40,862 in Montgomery, based on the cost of living difference.
Alexandria's housing index is 201 with median homes at $590,000, while Montgomery's is 49 with median homes at $162,000.

Moving & Relocation Resources

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