Anchorage vs Montgomery
Cost of Living Comparison · 2026
Anchorage
Montgomery
The Verdict
Montgomery is 60.8% less expensive than Anchorage overall. A household earning $75,000 in Anchorage would need approximately $46,654 in Montgomery to maintain the same standard of living.
Category-by-Category Breakdown
Index values · National average = 100 · Lower is more affordable
Salary Equivalence
A $75,000 salary in Anchorage has the same purchasing power as $46,654 in Montgomery.
Conversely, $75,000 in Montgomery equals $120,570 in Anchorage.
Living in Anchorage vs Montgomery
Housing Costs
Anchorage's housing index of 142 is higher Montgomery's 49, translating to median home prices of $340,000 vs $162,000. The $178,000 difference in home prices means roughly $11,568 per year in additional mortgage costs at current rates. Renters face a similar gap: $1,400/mo in Anchorage compared to $1,000/mo in Montgomery, a monthly difference of $400.
Grocery & Food Costs
Grocery expenses index at 120 in Anchorage and 99 in Montgomery. A household spending the national average of $475/month on groceries would pay approximately $570/month in Anchorage vs $470/month in Montgomery. Montgomery offers a meaningful advantage on everyday food costs, saving roughly $1200/year.
Utility Expenses
Utility costs — electricity, gas, water, internet — index at 130 in Anchorage and 115 in Montgomery. Monthly utility bills average approximately $520 in Anchorage 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 128 in Anchorage and 78 in Montgomery. This encompasses insurance premiums, doctor visit copays, dental care, and prescription costs. The 50-point gap reflects real differences in provider costs, insurance market competition, and regional healthcare infrastructure.
Income & Purchasing Power
Median household income is $72,515 in Anchorage and $56,800 in Montgomery. After adjusting for local costs, purchasing-power-equivalent incomes are approximately $57,098 and $71,899 respectively. Montgomery residents come out ahead in real purchasing power.
Relocation Considerations
Under the standard 28% rule, a median-income household can allocate $1,692/month to housing in Anchorage vs $1,325/month in Montgomery. In Anchorage, median rent of $1,400/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 93 index points — focus your budget analysis there.
Frequently Asked Questions
Moving & Relocation Resources
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