City comparison
Ann Arbor, MI vs Montgomery, AL
What a paycheck is really worth in each city: prices, rent and state taxes.
Key findings
- Prices in Ann Arbor, MI are 12.5% higher than in Montgomery, AL. Someone earning $100,000 in Montgomery, AL would need about $112,500 in Ann Arbor, MI to live the same way.
- Rent is the bigger story: a typical 1-bedroom costs $1,387 a month in Ann Arbor, MI versus $870 in Montgomery, AL. On $100,000, that's 22% of take-home pay in Ann Arbor, MI and 14% in Montgomery, AL.
- On $100,000, estimated state income tax is about $736 a year higher in Montgomery, AL than in Ann Arbor, MI.
- For federal employees, locality pay changes a GS-13 step 1 salary by −9.3% moving from Ann Arbor, MI to Montgomery, AL ($117,402 → $106,437), while prices change by −11.1%. Net effect of the transfer: +2.0% in real buying power.
- Ann Arbor, MI: price level 100.9 (about average)
- Montgomery, AL: price level 89.7 (much cheaper)
Map drawn from Census Bureau state boundaries and metro locations9,10; dot colours show BEA price levels2.
Side by side
| Ann Arbor, MI | Montgomery, AL | |
|---|---|---|
| Price level (U.S. = 100)2 | 100.9 | 89.7 |
| $100,000 is worth, in the other city2 | $88,900 in Montgomery | $112,486 in Ann Arbor |
| Typical 1-bedroom rent3 | $1,387/mo | $870/mo |
| Take-home on $100,00014,15,8 | $75,181 | $74,445 |
| State income tax on $100,000 (estimate)8 | $3,999 (MI) | $4,735 (AL) |
| Rent burden on $100,000 | 22% | 14% |
| Median pay, all jobs4 | $55,380 | $44,950 |
| Federal locality pay area7 | Detroit-Warren-Ann Arbor, MI | Rest of U.S. |
Rent areas: Ann Arbor, MI MSA and Montgomery, AL MSA. Metro areas: Ann Arbor, MI and Montgomery, AL.
What costs more or less
| Price level (U.S. = 100) | Ann Arbor | Montgomery |
|---|---|---|
| Housing (rent) | 125.3 | 64.3 |
| Goods | 93.7 | 96.4 |
| Utilities | 98.2 | 84.9 |
| Other services | 99.6 | 96.7 |
| Overall | 100.9 | 89.7 |
Moving with the same $100,000 salary
Ann Arbor, MI → Montgomery, AL
Same pay goes further
Buying power +12.5%; rent takes 14% of take-home; state tax +$736/yr.
100 Strong offer
Montgomery, AL → Ann Arbor, MI
Same pay buys less
Buying power −11.1%; rent takes 22% of take-home; state tax −$736/yr.
38 Weak offer
On the GS pay scale?
Ann Arbor, MI is in the Detroit-Warren-Ann Arbor, MI pay area; Montgomery, AL is in Rest of U.S.. The last column shows what a transfer from Ann Arbor, MI to Montgomery, AL at the same grade and step does to real buying power.
| Grade5,2 | Ann Arbor, MI | Montgomery, AL | Real change, Ann Arbor → Montgomery |
|---|---|---|---|
| GS-9 step 1 | $68,081 | $61,722 | +2.0% |
| GS-11 step 1 | $82,372 | $74,678 | +2.0% |
| GS-12 step 1 | $98,729 | $89,508 | +2.0% |
| GS-13 step 1 | $117,402 | $106,437 | +2.0% |
| GS-14 step 1 | $138,734 | $125,776 | +2.0% |
Pay for common jobs
| Median annual pay4 | Ann Arbor, MI | Montgomery, AL | Montgomery pay in Ann Arbor dollars |
|---|---|---|---|
| Elementary School Teachers, Except Special Education | $64,060 | $59,610 | $67,053 (+4.7%) |
| Software Developers | $126,830 | $110,620 | $124,432 (−1.9%) |
| Accountants and Auditors | $80,040 | $75,040 | $84,410 (+5.5%) |
| Registered Nurses | $103,450 | $79,570 | $89,505 (−13.5%) |
"Not published" means BLS doesn't release an estimate for that job in that metro.