Median Salary
$123,747
Vs National Avg
Hourly Wage
$59.49
Dollars / Hr
Workforce
1.2k
Total Jobs
Growth
+17%
10-Year Outlook
Software Developer Career Guide: Montgomery, Alabama
If you're a software developer considering a move to Montgomery, you're looking at a city that's quietly building a reputation as a tech hub in the Deep South. As someone who's watched the local scene evolve over the past decade, I can tell you Montgomery offers a unique blend of government-adjacent tech work, military contracts, and a surprisingly vibrant startup ecosystem—all with a cost of living that's nearly 10% below the national average. Let's break down what your life as a developer would actually look like here.
The Salary Picture: Where Montgomery Stands
Montgomery's software development market pays competitively, especially when you factor in the low cost of living. The median salary for software developers here is $123,747/year, which translates to an hourly rate of $59.49/hour. This is slightly below the national average of $127,260/year, but that gap closes dramatically when you account for housing costs.
The metro area supports 1,171 software developer jobs with a 10-year job growth of 17%—faster than many comparable Southern cities. The growth is driven by defense contractors, healthcare tech, and the state's digital transformation initiatives.
Here's how salaries break down by experience level:
| Experience Level | Years | Salary Range | Key Employers |
|---|---|---|---|
| Entry-Level | 0-2 | $65,000 - $85,000 | State agencies, small startups |
| Mid-Level | 3-5 | $90,000 - $120,000 | Regional banks, hospitals, defense contractors |
| Senior-Level | 6-10 | $125,000 - $160,000 | Major contractors, corporate HQs |
| Expert/Lead | 10+ | $160,000 - $200,000+ | Specialized defense, healthcare IT leadership |
When comparing to other Alabama cities:
- Birmingham offers higher salaries ($133,680 median) but has a higher cost of living
- Huntsville (tech hub) pays significantly more ($140,000+ for defense roles) but is more competitive
- Mobile pays less ($118,000) but has port-related tech opportunities
- Montgomery hits the sweet spot for work-life balance and purchasing power
Insider tip: Many developers here work remotely for companies based in Birmingham or Atlanta but live in Montgomery for the lower costs. This hybrid approach can boost your effective salary by 15-20%.
📊 Compensation Analysis
📈 Earning Potential
Wage War Room
Real purchasing power breakdown
Select a city above to see who really wins the salary war.
The Real Take-Home: After Taxes and Rent
Let's get real about what $123,747/year means in your pocket. The first thing to understand: Alabama has a flat state income tax of 5%, plus federal taxes. For a single filer with no dependents, here's the math:
- Gross monthly: $10,312
- Federal tax (est.): -$2,000
- Alabama tax (5%): -$515
- FICA (7.65%): -$789
- Net monthly: $7,008
Now, Montgomery's average 1BR rent is $913/month, but this varies significantly by neighborhood (more on that later). Let's build a realistic monthly budget for a mid-career developer earning the median salary:
| Expense Category | Monthly Cost | Notes |
|---|---|---|
| Rent (1BR apartment) | $1,100 | Above average but decent area |
| Utilities | $200 | Electric, water, internet |
| Groceries | $400 | Competitive prices |
| Transportation | $300 | Car payment/insurance/gas |
| Health Insurance | $300 | Employer-subsidized |
| Retirement (10%) | $1,031 | Pre-tax 401k contribution |
| Discretionary | $800 | Entertainment, dining, etc. |
| Total | $4,131 | Remaining: $2,877 |
With $2,877/month of disposable income after essentials, homeownership becomes very attainable. The median home price in Montgomery is approximately $185,000. With 10% down ($18,500) and current mortgage rates (around 7%), your monthly payment would be roughly $1,400 including taxes and insurance. That's only $300 more than renting a comparable space, and you're building equity.
Insider tip: Many developers here buy homes in the 3-5 year range, much faster than in tech hubs like Austin or Seattle where down payments can take a decade.
💰 Monthly Budget
📋 Snapshot
Where the Jobs Are: Montgomery's Major Employers
Montgomery's tech job market is anchored by government, defense, and healthcare. Unlike pure tech cities, you'll find more "mission-driven" organizations here, which often translates to better work-life balance but slightly lower salaries.
1. State of Alabama IT Department
- Location: Downtown, near the Capitol
- Size: ~200 tech employees
- Focus: Digital transformation, citizen services, legacy system modernization
- Hiring Trend: Steady, with emphasis on cloud migration (AWS/Azure) and cybersecurity
- Typical Roles: Full-stack developers, DevOps engineers, project managers
- Pay: Competitive with benefits (pension plan)
- Insider note: The state is notoriously slow to hire, but once you're in, job security is excellent
2. Maxwell-Gunter Air Force Base (Contractors)
- Location: East Montgomery, near I-85
- Key Contractors: Raytheon, Lockheed Martin, Booz Allen Hamilton, SAIC
- Focus: Defense software, cybersecurity, AI/ML for military applications
- Hiring Trend: Very active, especially for cleared developers
- Typical Roles: Systems engineers, embedded software, full-stack (DoD systems)
- Pay: $130,000 - $180,000 for cleared roles
- Insider tip: You need a security clearance (Secret or TS/SCI) for most positions. The process takes 6-12 months but is often sponsored by employers
3. Baptist Health & Ascension Alabama
- Location: Downtown (Baptist) & East Montgomery (Ascension)
- Focus: EHR systems, telehealth, data analytics
- Hiring Trend: Growing, driven by healthcare digitization
- Typical Roles: Healthcare software developers, data engineers, integration specialists
- Pay: $95,000 - $140,000
- Insider tip: Healthcare IT here is less stressful than at large hospital systems in bigger cities
4. Alabama Power / Southern Company
- Location: Downtown headquarters
- Focus: Grid management software, customer portals, smart grid tech
- Hiring Trend: Moderate, with digital transformation initiatives
- Typical Roles: Full-stack developers, data scientists, mobile developers
- Pay: $110,000 - $150,000
- Insider tip: Excellent benefits and stability, but corporate culture can be slow-moving
5. Regional Banks (Regions Bank, Synovus)
- Location: Downtown and East Montgomery
- Focus: Digital banking, mobile apps, fraud detection
- Hiring Trend: Steady, with periodic hiring surges
- Typical Roles: Frontend developers, backend engineers, security specialists
- Pay: $100,000 - $140,000
- Insider tip: These banks have been expanding their Montgomery tech teams to reduce dependence on Atlanta offices
6. Local Startups & Small Tech Firms
- Key Players: Fennel, Redstone Systems, Montgomery Tech Collective co-working
- Focus: B2B SaaS, govtech, education tech
- Hiring Trend: Emerging, with most growth in the last 5 years
- Typical Roles: Full-stack developers, product managers, growth engineers
- Pay: $80,000 - $120,000 + equity
- Insider tip: Most startups here are bootstrapped or have small VC backing, so equity is meaningful but liquidity is uncertain
7. Auburn University at Montgomery (AUM)
- Location: East Montgomery, near the campus
- Focus: EdTech, research software, administrative systems
- Hiring Trend: Occasional, tied to grants and initiatives
- Typical Roles: Research developers, IT support, instructional tech
- Pay: $70,000 - $95,000 (academic pay scale)
- Insider tip: Great for work-life balance and continuing education benefits
Hiring Trends to Watch:
- Cybersecurity is exploding due to Maxwell-Gunter's needs
- Healthcare IT is growing as Baptist Health expands
- Remote work has allowed Montgomery developers to tap into Atlanta/Dallas markets while living locally
- Contract-to-hire is common, especially with defense contractors
Getting Licensed in AL
Alabama doesn't require state-specific licensing for software developers (unlike some states with "software engineering" licenses). However, there are important certifications and clearances to consider:
1. Professional Certifications (Optional but Valuable)
- AWS Solutions Architect: $150 exam, 3-6 months study
- CompTIA Security+: $392 exam, 2-4 months study (valuable for defense contractors)
- Certified Kubernetes Administrator: $300 exam
- No state-specific requirements, but these are valued by employers
2. Security Clearances (For Defense Work)
- Secret Clearance: 6-9 months processing, $0 cost if sponsored
- TS/SCI Clearance: 12-18 months, $0 if sponsored
- Process: Employer sponsors, then extensive background check
- Timeline: Start applying for cleared roles immediately; clearance can be obtained on the job
- Tip: Even "clearance eligibility" (interim) can get you in the door
3. Business Licenses (If Freelancing/Starting a Company)
- State Business Registration: $100-250
- City of Montgomery Business License: $50-200 annually
- Timeline: 1-2 weeks to register
- Resources: Alabama Secretary of State website, Montgomery City Hall
4. Continuous Education
- AUM Continuing Ed: Courses in new technologies
- Meetups: Montgomery Tech Meetup (bi-weekly)
- Online: No state requirements for continuing education
Timeline to Get Started:
- Week 1-2: Update LinkedIn, start applying to Montgomery roles
- Month 1-2: Interview process (2-4 weeks typical)
- Month 2-3: Start new job, begin clearance process if needed
- Month 3-6: Settle in, build local network
Best Neighborhoods for Software Developers
Montgomery is a driving city—public transit is limited, so your neighborhood choice directly impacts your commute. Here are the top areas for developers, balancing commute time, lifestyle, and cost.
1. Downtown / Capitol Hill
- Commute to Major Employers: 5-10 minutes to state offices, Alabama Power, banks
- Vibe: Historic, walkable, growing coffee shop scene
- 1BR Rent: $1,000 - $1,400
- Best For: Young professionals who want urban living
- Insider Tip: The downtown revitalization is real—new restaurants and coworking spaces are opening regularly. Check out the Montgomery Tech Collective for remote work days.
2. East Montgomery / Dalraida
- Commute to Maxwell-Gunter: 10-15 minutes
- Vibe: Suburban, family-friendly, good schools
- 1BR Rent: $900 - $1,200
- Best For: Contractors needing quick base access
- Insider Tip: Many defense contractors live here for the easy commute. The area has excellent grocery stores (Publix, Walmart) and is 10 minutes from the Eastern Shore (Prattville) for shopping.
3. Cloverdale / Historic Garden District
- Commute to Downtown: 10-15 minutes
- Vibe: Quaint, walkable, older homes with character
- 1BR Rent: $850 - $1,200 (mostly older apartments or converted homes)
- Best For: Developers who want character and walkability
- Insider Tip: This is where the "creative class" is moving. The neighborhood has the best mix of local coffee shops (like Prevail Union) and proximity to downtown jobs.
4. The Woods / Vaughn Road
- Commute to Baptist Health: 10-15 minutes
- Vibe: Quiet, residential, near shopping centers
- 1BR Rent: $800 - $1,100
- Best For: Healthcare IT professionals working at Baptist
- Insider Tip: This area has the best value for proximity to healthcare employers. The schools are rated highly if you have or plan to have children.
5. Pike Road (Outskirts)
- Commute to Downtown: 20-25 minutes
- Vibe: Newer developments, more space, rural feel
- 1BR Rent: $750 - $1,000 (mostly new apartment complexes)
- Best For: Remote workers or those wanting more house for the money
- Insider Tip: If you're remote or work hybrid, this is where you can get a 2BR for downtown 1BR prices. The area is growing rapidly with new retail.
Commute Reality Check: Most tech jobs are clustered in three areas: downtown (state/banks), East Montgomery (Maxwell-Gunter), and near Baptist Health. Traffic is minimal—no rush hour gridlock like in bigger cities. A 15-minute commute is standard.
The Long Game: Career Growth
Montgomery isn't Silicon Valley, but that's part of its appeal. Career growth here follows different patterns, often with better work-life balance and more stability.
Specialty Premiums:
- Cleared Defense Work: +$20,000 - $40,000 premium
- Healthcare IT: +$10,000 - $20,000 premium
- Cloud/AWS Specialists: +$15,000 - $25,000 premium
- Cybersecurity: +$20,000 - $35,000 premium
- Data Science: +$10,000 - $20,000 premium (growing)
Advancement Paths:
Technical Track: Junior → Senior → Staff → Principal → Architect
- Timeline: 2-3 years per level
- Salary Growth: 10-15% per level
- Reality: Principal roles are scarce; many top out at Senior/Lead
Management Track: Developer → Tech Lead → Engineering Manager → Director
- Timeline: 3-5 years per jump
- Reality: Flat organizations mean fewer management slots
Hybrid Track (Most Common): Technical expertise + project management
- Example: Senior Developer → Solutions Architect → Technical Program Manager
- This is where you see the biggest salary jumps ($150,000+)
Entrepreneurial Track:
- Many developers here build side businesses or consult
- Montgomery's low overhead makes bootstrapping viable
- Local market: B2B SaaS for small businesses, govtech
10-Year Outlook:
- Job Growth: The 17% growth rate is expected to continue, driven by defense and healthcare
- Salary Growth: Likely to outpace inflation as Montgomery competes for talent
- Remote Work: Will continue to be a major factor—many locals work for out-of-state companies
- Emerging Sectors: EdTech (AUM, public schools), AgTech (rural Alabama), and SaaS for small businesses
- Risk Factors: Federal budget cuts could impact defense contractors; healthcare consolidation
Insider Advice: The most successful developers here either:
- Get cleared and work defense (high pay, stability)
- Work remote for coastal companies while living locally (best compensation)
- Specialize in healthcare IT (stable, growing)
- Build a niche consulting practice (highest upside)
The Verdict: Is Montgomery Right for You?
| Pros | Cons |
|---|---|
| Cost of Living: 90.8 index vs 100 US average | Limited Tech Community: Smaller than Birmingham or Huntsville |
| Median Salary: $123,747 goes far here | Nightlife/Scene: Less vibrant than bigger cities |
| Commute: 10-15 minutes typical | Career Ceiling: Fewer senior/executive tech roles |
| Home Ownership: Achievable in 3-5 years | Remote Work Dependence: To get top-tier salaries |
| Defense Jobs: Clearance pathways to $150,000+ | Limited VC Funding: Fewer startup opportunities |
| Healthcare Access: Good hospitals, growing IT | Transit: Car-dependent |
| Work-Life Balance: Less "hustle culture" | Cultural Fit: Conservative, traditional |
Final Recommendation:
Move to Montgomery if:
- You value homeownership and financial stability over prestige
- You're willing to get a security clearance for defense work
- You're interested in mission-driven tech (government, healthcare)
- You want to work remotely for coastal companies but live in an affordable city
- You prefer a slower pace with easy access to nature (Gulf Coast, mountains
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