City comparison
Houston, TX vs Montgomery, AL
What a paycheck is really worth in each city: prices, rent and state taxes.
Key findings
- Prices in Houston, TX are 10.0% higher than in Montgomery, AL. Someone earning $100,000 in Montgomery, AL would need about $110,000 in Houston, TX to live the same way.
- Rent is the bigger story: a typical 1-bedroom costs $1,323 a month in Houston, TX versus $870 in Montgomery, AL. On $100,000, that's 20% of take-home pay in Houston, TX and 14% in Montgomery, AL.
- On $100,000, estimated state income tax is about $4,735 a year higher in Montgomery, AL than in Houston, TX.
- For federal employees, locality pay changes a GS-13 step 1 salary by −13.3% moving from Houston, TX to Montgomery, AL ($122,749 → $106,437), while prices change by −9.1%. Net effect of the transfer: −4.6% in real buying power.
- Houston, TX: price level 98.6 (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
| Houston, TX | Montgomery, AL | |
|---|---|---|
| Price level (U.S. = 100)2 | 98.6 | 89.7 |
| $100,000 is worth, in the other city2 | $90,929 in Montgomery | $109,976 in Houston |
| Typical 1-bedroom rent3 | $1,323/mo | $870/mo |
| Take-home on $100,00014,15,8 | $79,180 | $74,445 |
| State income tax on $100,000 (estimate)8 | $0 (TX) | $4,735 (AL) |
| Rent burden on $100,000 | 20% | 14% |
| Median pay, all jobs4 | $49,410 | $44,950 |
| Federal locality pay area7 | Houston-The Woodlands, TX | Rest of U.S. |
Rent areas: Houston-The Woodlands-Sugar Land, TX HUD Metro FMR Area and Montgomery, AL MSA. Metro areas: Houston-Pasadena-The Woodlands, TX and Montgomery, AL.
What costs more or less
| Price level (U.S. = 100) | Houston | Montgomery |
|---|---|---|
| Housing (rent) | 104.5 | 64.3 |
| Goods | 100.6 | 96.4 |
| Utilities | 95.3 | 84.9 |
| Other services | 95.6 | 96.7 |
| Overall | 98.6 | 89.7 |
Moving with the same $100,000 salary
Houston, TX → Montgomery, AL
Same pay goes further
Buying power +10.0%; rent takes 14% of take-home; state tax +$4,735/yr.
100 Strong offer
Montgomery, AL → Houston, TX
Same pay buys less
Buying power −9.1%; rent takes 20% of take-home; state tax −$4,735/yr.
40 Weak offer
On the GS pay scale?
Houston, TX is in the Houston-The Woodlands, TX pay area; Montgomery, AL is in Rest of U.S.. The last column shows what a transfer from Houston, TX to Montgomery, AL at the same grade and step does to real buying power.
| Grade5,2 | Houston, TX | Montgomery, AL | Real change, Houston → Montgomery |
|---|---|---|---|
| GS-9 step 1 | $71,181 | $61,722 | −4.6% |
| GS-11 step 1 | $86,123 | $74,678 | −4.6% |
| GS-12 step 1 | $103,225 | $89,508 | −4.6% |
| GS-13 step 1 | $122,749 | $106,437 | −4.6% |
| GS-14 step 1 | $145,052 | $125,776 | −4.6% |
Pay for common jobs
| Median annual pay4 | Houston, TX | Montgomery, AL | Montgomery pay in Houston dollars |
|---|---|---|---|
| Elementary School Teachers, Except Special Education | $64,500 | $59,610 | $65,557 (+1.6%) |
| Software Developers | $129,440 | $110,620 | $121,656 (−6.0%) |
| Accountants and Auditors | $85,090 | $75,040 | $82,526 (−3.0%) |
| Registered Nurses | $99,830 | $79,570 | $87,508 (−12.3%) |
"Not published" means BLS doesn't release an estimate for that job in that metro.