City Comparison

Montgomery vs Philadelphia

Cost of Living Comparison · 2026

Montgomery

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

Philadelphia

Pennsylvania
106
Above Average
$240,000
Median Home
$1,400/mo
Median Rent
$49,127
Median Income

The Verdict

25.5%

Montgomery is 25.5% less expensive than Philadelphia overall. A household earning $75,000 in Montgomery would need approximately $100,633 in Philadelphia to maintain the same standard of living.

Category-by-Category Breakdown

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

Housing
49
Montgomery
107
Philadelphia
Groceries
99
Montgomery
104
Philadelphia
Utilities
115
Montgomery
113
Philadelphia
Transportation
92
Montgomery
108
Philadelphia
Healthcare
78
Montgomery
101
Philadelphia

Salary Equivalence

A $75,000 salary in Montgomery has the same purchasing power as $100,633 in Philadelphia.

Conversely, $75,000 in Philadelphia equals $55,896 in Montgomery.

Living in Montgomery vs Philadelphia

Housing Costs

Montgomery's housing index of 49 is lower Philadelphia's 107, translating to median home prices of $162,000 vs $240,000. The $78,000 difference in home prices means roughly $5,076 per year in additional mortgage costs at current rates. Renters face a similar gap: $1,000/mo in Montgomery compared to $1,400/mo in Philadelphia, a monthly difference of $400.

Grocery & Food Costs

Grocery expenses index at 99 in Montgomery and 104 in Philadelphia. A household spending the national average of $475/month on groceries would pay approximately $470/month in Montgomery vs $494/month in Philadelphia. The difference in grocery costs between these cities is relatively minor and unlikely to be a deciding factor in relocation.

Utility Expenses

Utility costs — electricity, gas, water, internet — index at 115 in Montgomery and 113 in Philadelphia. Monthly utility bills average approximately $460 in Montgomery vs $452 in Philadelphia. Utility costs are relatively comparable between these two cities.

Healthcare

Healthcare costs index at 78 in Montgomery and 101 in Philadelphia. This encompasses insurance premiums, doctor visit copays, dental care, and prescription costs. The 23-point gap reflects real differences in provider costs, insurance market competition, and regional healthcare infrastructure.

Income & Purchasing Power

Median household income is $56,800 in Montgomery and $49,127 in Philadelphia. After adjusting for local costs, purchasing-power-equivalent incomes are approximately $71,899 and $46,346 respectively. Montgomery residents enjoy stronger real purchasing power despite higher nominal wages.

Relocation Considerations

Under the standard 28% rule, a median-income household can allocate $1,325/month to housing in Montgomery vs $1,146/month in Philadelphia. In Montgomery, median rent of $1,000/mo fits within this budget. In Philadelphia, median rent of $1,400/mo pushes past the recommended limit. The biggest category-level difference between these two cities is Housing, where the gap is 58 index points — focus your budget analysis there.

Frequently Asked Questions

Montgomery is 25.5% more affordable overall with an index of 79 vs 106.
A $75,000 salary in Montgomery has equivalent purchasing power to approximately $100,633 in Philadelphia, based on the cost of living difference.
Montgomery's housing index is 49 with median homes at $162,000, while Philadelphia's is 107 with median homes at $240,000.

Moving & Relocation Resources

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