City Comparison

Laredo vs Montgomery

Cost of Living Comparison · 2026

Laredo

Texas
82
Very Affordable
$190,000
Median Home
$1,075/mo
Median Rent
$63,900
Median Income

Montgomery

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

The Verdict

3.8%

Living in Montgomery costs 3.8% less than Laredo. To match the purchasing power of a $75,000 salary in Laredo, you would need $72,256 in Montgomery.

Category-by-Category Breakdown

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

Housing
81
Laredo
49
Montgomery
Groceries
91
Laredo
99
Montgomery
Utilities
107
Laredo
115
Montgomery
Transportation
90
Laredo
92
Montgomery
Healthcare
77
Laredo
78
Montgomery

Salary Equivalence

A $75,000 salary in Laredo has the same purchasing power as $72,256 in Montgomery.

Conversely, $75,000 in Montgomery equals $77,848 in Laredo.

Living in Laredo vs Montgomery

Housing Costs

Laredo's housing index of 81 is higher Montgomery's 49, translating to median home prices of $190,000 vs $162,000. The $28,000 difference in home prices means roughly $1,824 per year in additional mortgage costs at current rates. Renters face a similar gap: $1,075/mo in Laredo compared to $1,000/mo in Montgomery, a monthly difference of $75.

Grocery & Food Costs

Grocery expenses index at 91 in Laredo and 99 in Montgomery. A household spending the national average of $475/month on groceries would pay approximately $432/month in Laredo vs $470/month in Montgomery. Laredo offers a meaningful advantage on everyday food costs, saving roughly $456/year.

Utility Expenses

Utility costs — electricity, gas, water, internet — index at 107 in Laredo and 115 in Montgomery. Monthly utility bills average approximately $428 in Laredo vs $460 in Montgomery. Utility costs are relatively comparable between these two cities.

Healthcare

Healthcare costs index at 77 in Laredo and 78 in Montgomery. This encompasses insurance premiums, doctor visit copays, dental care, and prescription costs. Healthcare costs are relatively similar between these two cities, though individual plan costs can still vary.

Income & Purchasing Power

Median household income is $63,900 in Laredo and $56,800 in Montgomery. After adjusting for local costs, purchasing-power-equivalent incomes are approximately $77,927 and $71,899 respectively. Laredo residents enjoy stronger real purchasing power despite higher nominal wages.

Relocation Considerations

Under the standard 28% rule, a median-income household can allocate $1,491/month to housing in Laredo vs $1,325/month in Montgomery. In Laredo, median rent of $1,075/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 32 index points — focus your budget analysis there.

Frequently Asked Questions

Montgomery is 3.8% more affordable overall with an index of 79 vs 82.
A $75,000 salary in Laredo has equivalent purchasing power to approximately $72,256 in Montgomery, based on the cost of living difference.
Laredo's housing index is 81 with median homes at $190,000, while Montgomery's is 49 with median homes at $162,000.

Moving & Relocation Resources

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