F
25%
Overall NAT. AVG.
9%
Goods & Services NAT. AVG.
70%
Housing NAT. AVG.
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Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.
The cost of living index is based on a national average of 100. For example, if the cost of living is 90, then it is 10% lower than average. If the cost of living is 110, then it is 10% higher than average. The breakdown for each index is as follows: goods & services (33%), groceries (13%), health care (5%), housing (30%), transportation (9%) and utilities (10%). If the cost of living data was unavailable for this city, estimates based upon nearby cities were used.
Index Montgomery Village Maryland National
Cost of living125119100
Goods & Services109106100
Groceries108106100
Health care9797100
Housing170150100
Transportation9598100
Utilities110111100

An Overview of Cost of Living in Montgomery Village, MD

Understanding the cost of living in Montgomery Village can help future residents assess whether their current financial situation aligns with the expenses they will encounter. It enables them to plan for potential changes in their budget and lifestyle. The Montgomery Village cost of living index is 125, which is 25% higher than the national average. The cost of living index is calculated by taking into account multiple categories, which encompass both the cost of everyday expenditures and larger expenses as well.

If you prioritize affordability when seeking a new place to live, Montgomery Village may not be your ideal choice, as it ranks among the most expensive locations in the entire United States. A very small amount of areas exhibit a cost of living at least 20% higher than the national average, and unfortunately, Montgomery Village falls into this category, which may not align with your preferences for a budget-friendly living environment.

Housing costs are a major factor in the Montgomery Village cost of living index, and they often eat up a big chunk of your take-home pay. Unfortunately, in this area, housing expenses for both homeownership and rentals were 69.5% higher than what's typical in an average city. That includes the prices of homes and rents, as well as mortgage rates and insurance.

Is Montgomery Village Affordable?

Is Montgomery Village affordable? It's a key consideration when pondering a move, as affordability often shapes your choices. The cost of living index (we discussed it earlier), coupled with housing costs and income levels, serves as the cornerstone for determining a location's affordability. Take Montgomery Village, for instance, where the median home price falls 68.2% higher than the national average, and monthly rent rates are 72.5% higher than usual. Additionally, median income levels contribute to the equation, with Montgomery Village flaunting a median household income of $82,135, 48.5% higher than the national norm.

What Factors can Influence the Cost of Living in Montgomery Village?

Transportation: In areas where public transportation is scarce or unavailable, residents often find themselves compelled to own and upkeep vehicles, thereby increasing the overall cost of living. Monthly expenses encompass fuel, insurance, routine maintenance and potentially lease or financing payments. In Montgomery Village, the transportation index is 4.7% lower than the national average.

Taxes: Locations with elevated tax rates, encompassing both sales and income taxes, can be a factor in driving up the cost of living. When you're paying more in taxes for everyday goods and services, it naturally translates into higher expenses. Similarly, a higher income tax rate can also contribute to an overall higher cost of living. In Montgomery Village, the standard sales tax rate starts at 6%, and the income tax rates commence at 2%.

Subsidies: Certain cities or states may implement government subsidies or assistance programs with the goal of alleviating the cost of living pressures on their residents. These programs encompass a broad spectrum of support mechanisms, including Medicare, Medicaid, housing subsidies, low-income home energy assistance programs, school lunch programs, supplemental nutrition assistance programs, student loans, electric vehicle tax credits, affordable care act subsidies and farming subsidies. Areas offering fewer subsidies may experience a rise in their cost of living.

Where is the Data From?

The Montgomery Village cost of living data displayed above is derived from the C2ER cost of living index to provide a useful and reasonably accurate measure of living cost differences in urban areas. The index takes into account data from 300 independent researches, covering more than 60 goods and services across 6 different categories, to create an overall index for each area, with 100 being the average. The C2ER index does not include sales or income tax rates in their data, however AreaVibes does include both income and sales tax rates in the overall cost of living score for each area.

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Cost Of Living Quick Facts

  • The cost of living in Montgomery Village is 6% higher than the Maryland average
  • The cost of living in Montgomery Village is 25% higher than the national average
  • Montgomery Village housing is 70% higher than the national average
  • Maryland general sales tax is 18% higher than the national average
  • Maryland state income tax is 23% lower than the national average

Most Affordable Places to Live in and Around Montgomery Village

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Compare Montgomery Village, MD Cost of Living

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      Salary Calculator

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      Price difference in compared to
      Cost of living index
      Goods & Services index
      Groceries index
      Health care index
      Housing index
      Transportation index
      Utilities index

      Median Income & Debt-To-Income Ratio

      Median Income Per Year Per Month Max Budget (28% DTI) Max Budget (36% DTI)
      Owners$105,950$8,829$2,472$3,179
      Renters$44,437$3,703$1,037$1,333
      A good way to judge both the affordability of the housing and the cost of living in Montgomery Village is by simply calculating the maximum that should be spent on housing, otherwise known as the debt-to-income ratio (DTI). The plan is to avoid spending more than 28 percent of the gross income on costs that pertain to housing and no more than 36 percent on all expenses and debts. Montgomery Village has a median income of about $105,950 for people who own homes. Based on that number, a maximum of $2,472 should be spent on expenses related to housing. Renters have a slightly different median income, which is $44,437. Based on this average, renters should spend no more than $1,037 on all rental costs if they want to maintain a non-impoverished standard of living.

      Maryland Sales Tax

      State General Sales Tax With Max Surtax
      Maryland 6% 6%

      Maryland Income Tax

      State Income Tax (Low) Income Tax (High)
      Maryland 2% 5.75%

      Goods & Services

      Item Montgomery Village National avg. Difference
      Haircut $26.11$24.267.6%
      Beauty Salon $70.08$45.5653.8%
      Toothpaste $3.81$3.702.8%
      Shampoo $1.51$1.2817.9%
      Movie $15.69$12.1329.3%
      Bowling $24.83$18.0038.0%

      Groceries

      Item Montgomery Village National avg. Difference
      Ground Beef $6.24$5.846.9%
      Fried Chicken $1.40$1.5711.0%
      Milk $4.78$4.672.2%
      Potatoes $5.49$4.9311.3%
      Pizza $12.56$12.093.9%
      Beer $11.10$10.416.6%

      Health Care

      Item Montgomery Village National avg. Difference
      Optometrist $92.00$125.6826.8%
      Doctor $135.03$135.780.5%
      Dentist $117.67$113.293.9%
      Ibuprofen $11.52$10.658.1%
      Lipitor $403.79$468.6013.8%

      Housing

      Item Montgomery Village National avg. Difference
      Home Price $310,700.00$184,700.0068.2%
      Avg. Mortgage Payment $4,819.29$2,346.69105.4%
      Apartment Rent $1,637.00$949.0072.5%

      Transportation

      Item Montgomery Village National avg. Difference
      Gasoline $3.25$3.466.0%
      Tire Balancing $59.00$59.921.5%

      Utilities

      Item Montgomery Village National avg. Difference
      All Electricity $222.47$193.9914.7%
      Phone $197.37$192.252.7%
      Although the cost of living data is updated regularly, this cost of living information is to be used as estimates only as prices can change on an ongoing basis.

      Nearby cities with low cost of living

      City Population Cost of Living Index National Avg.
      Leisure World, MD9,31411717.0%
      Langley Park, MD19,39112121.5%
      Summerfield, MD14,47712221.9%
      Ballenger Creek, MD21,48412222.2%
      Adelphi, MD16,36412928.6%
      Montgomery Village, MD34,41312525.2%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Norristown, PA34,3921011.2%
      University CDP (Orange County), FL34,379927.5%
      Georgetown, KY34,362991.5%
      McMinnville, OR34,46611817.7%
      Fair Oaks, VA34,46614746.6%
      Montgomery Village, MD34,41312525.2%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.