Side-by-side comparison of home prices, mortgage payments, and housing costs between Mobile and Montgomery, Alabama. Using Alabama's 0.41% property tax rate and $1,950/year insurance. Updated for 2026.
Montgomery edges out Mobile in affordability, saving you roughly $64/month on total housing costs. Both cities are in Alabama, so property tax rates and insurance costs are the same — the difference comes down to home prices and what you get for your money in each market.
Estimated PITI payments assuming 10% down, 6.5% rate, 30-year fixed mortgage with PMI. Uses Alabama's 0.41% property tax rate.
Buying in Montgomery saves you approximately $64/month ($768/year) compared to Mobile, based on median home prices with identical loan terms.
Montgomery is the better choice for first-time buyers, with a median price of $175K versus $185K in Mobile. That's $10K less to save for a down payment. You'd need roughly $6K for an FHA 3.5% down payment in Montgomery, compared to $6K in Mobile. Alabama offers the Alabama Housing Finance Authority Step Up program (Up to $10,000 DPA) which applies in both cities.
Montgomery has the better price-to-rent ratio at 13.9x versus 14.3x in Mobile. A lower ratio generally signals better rental income relative to purchase price. Average rent in Montgomery is $1,050/month on a $175K median home, making it a stronger candidate for buy-and-rent investors.
Montgomery (pop. 200,603) offers more amenities, schools, and services typical of a larger city, while Mobile (pop. 187,041) may offer a quieter, more community-oriented lifestyle. Montgomery offers both more options and lower housing costs, making it attractive for families who want urban amenities without a premium price.