F
26%
Overall NAT. AVG.
2%
Goods & Services NAT. AVG.
84%
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 Ohio National
Cost of living12692100
Goods & Services102100100
Groceries102101100
Health care10398100
Housing18473100
Transportation102100100
Utilities10099100

An Overview of Cost of Living in Montgomery, OH

Are you thinking about relocating, but curious about the potential cost of living in Montgomery? Is it more expensive or more affordable than average? Based on the most recent report, the cost of living in Montgomery stands at 126, making it 26% higher than the national average. The cost of living directly affects the affordability of one's desired lifestyle. Knowing the cost of housing, transportation, groceries and other essentials in the new area allows people to gauge whether they can maintain their preferred standard of living.

If you're in pursuit of an economical living environment, Montgomery may not fit the bill, as it ranks among the most expensive places to reside in the United States. Just a minority of regions exhibit a cost of living that is more than 20% higher than the national average, and, unfortunately, Montgomery falls within this bracket.

When it comes to the cost of living in Montgomery, housing costs are a real heavyweight, often hogging a significant chunk of your earnings. Sadly, in this area, housing expenses for both buying and renting were 83.9% more expensive compared to your average city. That means you'll be shelling out more for homes, rents, mortgage rates and insurance.

Is Montgomery Affordable?

Is Montgomery 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, for instance, where the median home price falls 108.1% higher than the national average, and monthly rent rates are 27.3% higher than usual. Additionally, median income levels contribute to the equation, with Montgomery flaunting a median household income of $118,977, 115.1% higher than the national norm.

What Factors can Influence the Cost of Living in Montgomery?

Subsidies: Some areas might offer government subsidies or assistance programs that help lower cost of living for residents. These programs can include anything from 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 crop subsidies. Areas that offer less subsidies, could see an increase in their cost of living.

Housing: High demand for housing in desirable locations can drive up property prices and rental rates. This can be a primary contributor to a higher cost of living. While low demand for housing, especially in undesirable locations, can have the reverse effect and drive prices down, resulting in a lower cost of living. The housing index in Montgomery, is 83.9% higher than the national average.

Taxes: Cities that impose higher taxes, including sales and income taxes, can contribute to an escalated cost of living. The added expense of taxes on everyday goods like clothing and food naturally results in higher overall costs. Similarly, a higher income tax rate can further elevate the cost of living. In Montgomery, the general sales tax rate starts at 5.75%, and income tax rates begin at 0%.

Where is the Data From?

The cost of living in Montgomery, presented above is derived from the C2ER cost of living index, offering a practical method for assessing living cost disparities in urban areas. Published quarterly, this index compiles data from more than 300 independent researchers, encompassing over 60 goods and services in 6 categories. The weightings assigned to cost variances are informed by government survey data tracking the expenditure patterns of professional and executive households. It should be noted that the C2ER index does not include data on sales or income tax rates, however, AreaVibes incorporates tax rates into the overall cost of living score for each area.

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Cost Of Living Quick Facts

  • The cost of living in Montgomery is 37% higher than the Ohio average
  • The cost of living in Montgomery is 26% higher than the national average
  • Montgomery housing is 84% higher than the national average
  • Ohio general sales tax is 13% higher than the national average
  • Ohio state income tax is 6% higher than the national average

Most Affordable Places to Live in and Around Montgomery

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Compare Montgomery, OH Cost of Living

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      This is how much you would need to earn in
      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$132,208$11,017$3,085$3,967
      Renters$67,411$5,618$1,573$2,023
      A good indicator of the general affordability of housing in Montgomery, OH, is the percentage of monthly income that should be spent on housing expenses, otherwise known as the debt-to-income ratio (DTI). Generally speaking, no more than 28 percent of your total gross income should be spent on your housing expenses and not more than 36 percent of your gross income on total expenses, including debts. In Montgomery, the median monthly income is $132,208 for those who own their own homes. Under the standard rule, that income level would allow for $3,085 to be budgeted for housing expenses each month, at the most. Renters, on the other hand, earn about $67,411, per the median income in the area. That would allow for renters to spend up to $1,573 on monthly rental expenses.

      Ohio Sales Tax

      State General Sales Tax With Max Surtax
      Ohio 5.75% 8%

      Ohio Income Tax

      State Income Tax (Low) Income Tax (High)
      Ohio 2.76% 3.99%

      Goods & Services

      Item Montgomery National avg. Difference
      Haircut $25.13$24.263.6%
      Beauty Salon $37.93$45.5616.7%
      Toothpaste $3.60$3.702.7%
      Shampoo $1.27$1.280.6%
      Movie $14.35$12.1318.3%
      Bowling $17.56$18.002.5%

      Groceries

      Item Montgomery National avg. Difference
      Ground Beef $5.91$5.841.2%
      Fried Chicken $1.72$1.579.1%
      Milk $4.80$4.672.7%
      Potatoes $5.05$4.932.3%
      Pizza $11.92$12.091.4%
      Beer $10.63$10.412.1%

      Health Care

      Item Montgomery National avg. Difference
      Optometrist $105.42$125.6816.1%
      Doctor $159.40$135.7817.4%
      Dentist $106.67$113.295.8%
      Ibuprofen $10.68$10.650.3%
      Lipitor $497.02$468.606.1%

      Housing

      Item Montgomery National avg. Difference
      Home Price $384,400.00$184,700.00108.1%
      Avg. Mortgage Payment $1,993.26$2,346.6915.1%
      Apartment Rent $1,208.00$949.0027.3%

      Transportation

      Item Montgomery National avg. Difference
      Gasoline $3.27$3.465.6%
      Tire Balancing $73.09$59.9222.0%

      Utilities

      Item Montgomery National avg. Difference
      All Electricity $197.10$193.991.6%
      Phone $186.48$192.253.0%
      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.
      Plainville, OH1531021.7%
      Dillonvale village, OH6458316.6%
      Elmwood Place, OH2,0718416.4%
      Arlington Heights, OH8278514.7%
      Lincoln Heights, OH3,3598613.8%
      Montgomery, OH10,81812626.4%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Highland Park, MI10,8188218.3%
      Rockport, TX10,8151000.2%
      La Tuque, QC10,815n/a 
      Burtonsville, MD10,81213737.4%
      Totowa, NJ10,81012929.3%
      Montgomery, OH10,81812626.4%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.