Relocation Guide: Moving to Montgomery, AL

March 2, 2023

Relocation Guide: Moving to Montgomery, AL

Moving to Montgomery, AL: As Alabama’s capital, is situated in the center of it all. The Gump is the state’s second-largest city, with just over 200,000 residents. The nucleus of Alabama’s Black Belt, a region with rich soil perfect for growing cotton and other commodity crops, rose to prominence in the early 1800s. Though it was dubbed the Confederate States of America’s first capital during the Civil War, the city played a central role in the Civil Rights Movement less than a century later.

The Civil Rights Memorial and Old Alabama Town, a neighborhood with fifty restored 19th-century buildings, pay homage to Montgomery’s past, but this is a city that is focused on the future.

Guide Moving to Montgomery

Downtown Montgomery had fallen into disrepair for decades, earning a reputation as a seedy part of town. The city began the process of revitalizing its once-thriving core in the early 2000s. Construction of a stadium for the Montgomery Biscuits, a Double-A affiliate of the Tampa Bay Rays, as well as the beautification of the Riverfront and millions of dollars in private investment in new development were among the projects.

The city’s burgeoning economy has benefited from these downtown developments. Montgomery is still an important processing hub for Alabama’s agricultural exports, but it also employs people in a number of fields, including government, military, manufacturing, healthcare, and education. Montgomery has a lot to offer, including an inviting downtown, a vibrant economy, low housing costs, and more.

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Tax Rates

Tax rates, as they are elsewhere, are a major consideration. Of course, Montgomery, Alabama is no exception, but it does have comparatively low property taxes as compared to metropolitan cities of comparable size or larger.

Property: Montgomery County’s overall property tax rate is just 0.393 percent. Property taxes on an average $250,000 home will be about $983 per year.

Sales: For years, Montgomery, like most of the rest of the state, has relied on voter-approved sales tax increases to finance its public schools. The new sales tax is 10%, with federal, county, area, and special allocations included.

Income: Alabama’s income tax is divided into three income tax brackets. You’ll pay 2 percent, 4 percent, or 5 percent, depending on your earnings.

Housing Market

The housing market in Montgomery is a bit of a puzzle. Despite recent revitalization attempts, the downtown area, like far too many big, older cities, can feel neglected in areas, as much of the new construction is moving outward into the suburbs. Montgomery’s real estate market is booming as of September 2019 – home prices have risen by more than 5% in the last year, though they haven’t yet recovered to pre-recession levels. Despite the fact that it is a seller’s market, there are some fantastic property offers to be had in a city with a population of over 200,000 people and a median household income of just $43,500.

* The average home costs $84,300.
* The average rent is $712 a month (1 BR)
* Own vs. Rent: About 63 percent of residents own their homes, while 37 percent rent.

Cost of Living moving to Montgomery

Montgomery’s cost of living is lower than the majority of the state and the world in almost every category. For example, housing, groceries, transportation, and miscellaneous expenses all scored well below average. Healthcare and services were just a few tenths of a percent higher.

Montgomery is ranked 80.1 out of 100 for the cost of living on‘s national quality list. According to’s Family Budget Calculator, a family of four residing in the metro region should predict monthly expenditures of $6,731, whereas a family of four living elsewhere in Montgomery County can expect $6,662.

Montgomery’s cost of living is a breath of fresh air when compared to the rest of the United States. The cost of healthcare and utilities is just marginally higher. Except for accommodation, which was less than half the national average, every other category was about ten points lower than the average.

The Job Market and the Economy

Montgomery’s economy lags behind the rest of the world, but it has been steadily improving over the last few years. Newcomers who come in to fill open positions have a lot of purchasing power.

The unemployment rate in July 2019 was just 4.1 percent, and the median household income was about $44,000 per year. According to, these figures indicate that it lags behind the rest of the nation. The unemployment rate in July 2019 was 3.7 percent nationwide, and the median household income was $57,000 per year. However, in The Gump, you can expect your paycheck to stretch further due to lower living expenses and lower tax rates.

Where do the locals go to work? The manufacturing, retail, hospitality/restaurant, and education sectors employ the majority of Montgomery’s residents. However, public service is the biggest employer.

The city and state governments employ over 12,000 people or 24 percent of the workforce. Maxwell-Gunter Air Force Base and a Hyundai manufacturing plant are both located in Montgomery, employing thousands of Montgomery residents.

Moving to Montgomery? Here are companies that help you move
Xfinity Moving
College Hunk
Two Men and a Truck
All My Sons Moving and Storage
College Hunk
Portable On Demands
Budget Truck Rental
Best Interstate Moving + Storage