Montgomery vs Salem
Cost of Living Comparison · 2026
Montgomery
Salem
The Verdict
Montgomery is 24.0% less expensive than Salem overall. A household earning $75,000 in Montgomery would need approximately $98,734 in Salem 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 Montgomery has the same purchasing power as $98,734 in Salem.
Conversely, $75,000 in Salem equals $56,971 in Montgomery.
Living in Montgomery vs Salem
Housing Costs
Montgomery's housing index of 49 is lower Salem's 118, translating to median home prices of $162,000 vs $400,000. The $238,000 difference in home prices means roughly $15,468 per year in additional mortgage costs at current rates. Renters face a similar gap: $1,000/mo in Montgomery compared to $1,275/mo in Salem, a monthly difference of $275.
Grocery & Food Costs
Grocery expenses index at 99 in Montgomery and 100 in Salem. A household spending the national average of $475/month on groceries would pay approximately $470/month in Montgomery vs $475/month in Salem. 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 97 in Salem. Monthly utility bills average approximately $460 in Montgomery vs $388 in Salem. 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 78 in Montgomery and 100 in Salem. This encompasses insurance premiums, doctor visit copays, dental care, and prescription costs. The 22-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 $66,400 in Salem. After adjusting for local costs, purchasing-power-equivalent incomes are approximately $71,899 and $63,846 respectively. Montgomery residents enjoy stronger real purchasing power despite lower nominal wages.
Relocation Considerations
Under the standard 28% rule, a median-income household can allocate $1,325/month to housing in Montgomery vs $1,549/month in Salem. In Montgomery, median rent of $1,000/mo fits within this budget. In Salem, median rent of $1,275/mo remains manageable. The biggest category-level difference between these two cities is Housing, where the gap is 69 index points — focus your budget analysis there.
Frequently Asked Questions
Moving & Relocation Resources
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