Key Economic Benchmarks
Median Household Income
$56,811$4,734 per month · U.S. Census Bureau ACS 5-YearFair market rent & 30% rule in Montgomery, AL
Official HUD Fair Market Rents evaluated against local household income benchmarks.
2026 HUD Fair Market Rent Schedule: Montgomery, AL
Official FY2026 HUD Fair Market Rents for Montgomery, AL MSA. Under the federal 30% housing affordability standard, housing costs are sustainable when they consume 30% or less of gross household income.
| Unit Size | Monthly Rent | Annual Rent | 30% Rule Min. Income | % of Median Income |
|---|---|---|---|---|
| Studio / Efficiency | $860 | $10,320 | $34,400 | 18.2% |
| 1-Bedroom Apartment | $870 | $10,440 | $34,800 | 18.4% |
| 2-Bedroom ApartmentBenchmark | $1,016 | $12,192 | $40,640 | 21.5% |
| 3-Bedroom Home | $1,304 | $15,648 | $52,160 | 27.5% |
| 4-Bedroom Home | $1,537 | $18,444 | $61,480 | 32.5% |
50/30/20 Living Budget in Montgomery, AL
Based on the local median household income of $56,811/year ($4,734/month), here is how a balanced budget allocates expenses:
Take-Home Pay & Tax Explorer in Alabama
Explore net income after federal income tax, FICA, and Alabama state income tax based on the local median baseline.
Related Regional & Financial Profiles
Compare earnings and living costs across Alabama with official federal datasets:
Frequently Asked Questions About Living in Montgomery, AL
What is the median household income in Montgomery, AL?
According to the latest U.S. Census Bureau ACS 5-Year survey, the median household income in Montgomery, AL is $56,811 per year (approximately $4,734 per month).
What is the average rent in Montgomery, AL?
According to HUD Fair Market Rent (FMR) benchmarks for 2026, standard monthly rents in Montgomery, AL are $860 for a studio, $870 for 1 bedroom, $1,016 for 2 bedrooms, $1,304 for 3 bedrooms, and $1,537 for 4 bedrooms.
How does the cost of living in Montgomery, AL compare to the national average?
Based on the Bureau of Economic Analysis (BEA) Regional Price Parity index, the general price level in Montgomery, AL is 89.7 (10.3% lower than the U.S. national baseline of 100.0).
How much do you need to earn to comfortably afford rent in Montgomery, AL?
Under the standard 30% housing affordability standard, renting a median 2-bedroom home ($1,016/month) in Montgomery, AL requires a minimum gross household income of $40,640 per year ($3,387 per month).
What is a balanced 50/30/20 monthly budget in Montgomery, AL?
For a typical household earning the median income of $56,811/year ($4,734/month) in Montgomery, AL, a balanced 50/30/20 budget allocates $2,367/month to essential needs (rent, utilities, groceries), $1,420/month to discretionary spending, and $947/month to savings and debt repayment.
What are typical electricity and utility costs in Montgomery, AL?
Residential electricity rates in Alabama average 16.4¢ per kWh according to the U.S. Energy Information Administration (EIA). For an average home using 900 kWh per month, the estimated electric bill is approximately $148 per month.