Memphis vs Montgomery
Cost of Living Comparison · 2026
Memphis
Montgomery
The Verdict
Montgomery is 6.3% less expensive than Memphis overall. A household earning $75,000 in Memphis would need approximately $70,536 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 Memphis has the same purchasing power as $70,536 in Montgomery.
Conversely, $75,000 in Montgomery equals $79,747 in Memphis.
Living in Memphis vs Montgomery
Housing Costs
Memphis's housing index of 63 is higher Montgomery's 49, translating to median home prices of $155,000 vs $162,000. The $7,000 difference in home prices means roughly $456 per year in additional mortgage costs at current rates. Renters face a similar gap: $1,000/mo in Memphis compared to $1,000/mo in Montgomery, a monthly difference of $0.
Grocery & Food Costs
Grocery expenses index at 93 in Memphis and 99 in Montgomery. A household spending the national average of $475/month on groceries would pay approximately $442/month in Memphis vs $470/month in Montgomery. Memphis offers a meaningful advantage on everyday food costs, saving roughly $336/year.
Utility Expenses
Utility costs — electricity, gas, water, internet — index at 88 in Memphis and 115 in Montgomery. Monthly utility bills average approximately $352 in Memphis 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 92 in Memphis and 78 in Montgomery. This encompasses insurance premiums, doctor visit copays, dental care, and prescription costs. The 14-point gap reflects real differences in provider costs, insurance market competition, and regional healthcare infrastructure.
Income & Purchasing Power
Median household income is $41,228 in Memphis and $56,800 in Montgomery. After adjusting for local costs, purchasing-power-equivalent incomes are approximately $49,081 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 $962/month to housing in Memphis vs $1,325/month in Montgomery. In Memphis, median rent of $1,000/mo exceeds this threshold, suggesting renters may feel stretched. In Montgomery, median rent of $1,000/mo remains manageable. The biggest category-level difference between these two cities is Utilities, where the gap is 27 index points — focus your budget analysis there.
Frequently Asked Questions
Moving & Relocation Resources
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