Retiring in Montgomery, Texas

Retiring in Montgomery: overview

Montgomery is in Montgomery County, Texas, within the Houston, The Woodlands & Northwest region.

Montgomery is a small incorporated city in western Montgomery County. The Census Bureau's 2020 Texas place file lists it in Montgomery County, and the American Community Survey for 2019-2023 estimates a population of 2,272, a median age of 36.1 and 477 residents aged 65 and over, which is 21.0 percent. With a population this small, the estimates carry wide margins of error, but the older share is high enough to be worth noting. The city's own welcome page describes a town that began as a trading post in 1826, was chartered in 1837, and was the first county seat of Montgomery County. It says the center of town is 15 miles west of Conroe and 50 miles northwest of Houston, at the junction of Texas 105 and FM 149 near the southwestern edge of Sam Houston National Forest.

Two different things share the name. The historic city has a downtown and a small residential base. Woodforest, a large master-planned community with a Montgomery address, is a separate and much bigger source of new housing, and it contains Bonterra at Woodforest, a 55+ community. A Woodforest or Montgomery mailing address does not by itself show that a lot is inside the city limits, so tax and utility questions should be answered by the parcel's tax statement. Nearby places with similar settings are Conroe, Willis and The Woodlands.

Cost of living in Montgomery

The Census Bureau's American Community Survey for 2019-2023 estimates a median household income of $78,333 across 954 households in Montgomery, with 33.4 percent of households receiving Social Security income and 31.4 percent receiving retirement income. It counts 1,061 housing units and estimates that 57.5 percent of occupied homes are owner-occupied. The median value of owner-occupied homes is $366,600, median selected monthly owner costs for households with a mortgage are $2,593, and median gross rent is $1,342. These are estimates for a very small city, and one new subdivision can move them noticeably. Texas has no state personal income tax; see Texas retirement taxes.

Property taxes in Montgomery

Montgomery Central Appraisal District values property in Montgomery County from its office at 109 Gladstell in Conroe, and the Montgomery County Tax Assessor-Collector bills and collects. The county tax office publishes a table of 2026 rates and exemptions. In that table the City of Montgomery is listed at 0.4000 per $100 of taxable value, with 0.3301 for maintenance and operations and 0.0699 for debt service, Montgomery County at 0.3860, the Montgomery County Hospital District at 0.0458 and Lone Star College at 0.1058. Two school districts appear for the area: Montgomery ISD at 1.0479, with 0.6977 for maintenance and operations and 0.3502 for debt service, and Conroe ISD at 0.9471, with 0.6671 for maintenance and operations and 0.2800 for debt service. Woodforest's developer site says the community is zoned to both districts, so which one applies depends on the street.

As an illustration of the arithmetic only, adding the 2026 city, county, hospital district, college and Montgomery ISD rates gives 1.9855 per $100, and substituting Conroe ISD gives 1.8847, in each case before any municipal utility district, emergency services district or other charge. A house in a utility district such as those in Woodforest pays more than that, and an address with a Montgomery mailing address is not necessarily inside the city limits, in which case the city rate would not apply.

Exemptions reduce taxable value; they are not cash payments. The Texas Comptroller states that Tax Code Section 11.13(b) requires school districts to provide a $140,000 residence homestead exemption and Section 11.13(c) an additional $60,000 exemption for homeowners aged 65 or older or disabled, and that local-option exemptions are set by each unit. In the county table the City of Montgomery row prints 20%, 50,000 and 70,000 under its homestead, over-65 and disability headings, the Montgomery County row prints 20%, 50,000 and 75,000, the Montgomery ISD row prints 140,000, 60,000 and 60,000, and the Conroe ISD row prints 140,000, 65,000 and 60,000. The county, Montgomery ISD and Conroe ISD rows are marked as offering a tax ceiling; the City of Montgomery row is not. Confirm amounts with Montgomery Central Appraisal District, which administers the exemptions.

The county tax office says the over-65, disabled person and disabled veteran exemptions can freeze taxes under Section 11.26 of the Property Tax Code. That section limits increases in school district tax on the homestead of an owner aged 65 or older; it is not a freeze on city, county or other taxes. See homestead and age-65 exemptions and property taxes and appraisal districts. The city also has a program for old buildings: under Ordinance 2023-05, a property that meets the city's requirements for a historically significant structure is eligible for a 25 percent exemption from the city's ad valorem taxes, administered jointly with the appraisal district. That applies to designated historic structures, not to ordinary homes.

Utility districts add substantial lines in this county. The Comptroller's 2025 special-district file for Montgomery County shows municipal utility district rates from 0.0424 up to 1.5 per $100, and the county's 2026 table lists districts including Montgomery County MUD 153 at 1.4500 and Montgomery County MUD 160 at 0.7000. The Texas Commission on Environmental Quality explains that when voters authorize unlimited tax bonds the board must levy an annual tax on all property in the district sufficient to cover the debt, and that sellers in a district usually must give buyers a notice stating the district's bonds and tax rate. Ask for that notice on any purchase. See MUDs, PIDs and special districts.

Insurance and risk in Montgomery

Flood risk depends on the parcel and on how close the home is to a creek or to Lake Conroe. Montgomery County's floodplain administration office publishes the floodplain management regulations and an interactive map of county floodplains, and it links information on the April and May 2024 flood event. FEMA states that any place with a 1 percent or higher chance of flooding each year is considered high risk, that floods do not follow property lines, and that most homeowners insurance does not cover flood damage; a separate National Flood Insurance Program policy typically has a 30-day waiting period. The San Jacinto River Authority, which operates the Lake Conroe dam, says the dam and spillway are operated to pass storm events safely through the reservoir. Check the FEMA flood map for the exact address and ask the seller about flood history.

Montgomery County is not one of the 14 first-tier coastal counties in the Texas Windstorm Insurance Association's designated area, so wind and hail coverage for a Montgomery address is arranged with a private insurer. The Texas Department of Insurance advises asking whether the wind and hail deductible differs from other deductibles and notes that some insurers move an aging roof to actual cash value coverage. The city's utilities page links a hurricane preparedness newsletter and guidance on separating household trash from storm debris. Premiums are not quoted here. See Gulf Coast hurricane, windstorm and flood insurance and hail, wildfire, drought, heat and power outages.

Healthcare access in Montgomery

The hospital campuses that serve the area are in Conroe and The Woodlands. HCA Houston Healthcare Conroe, at 504 Medical Center Blvd., describes itself as a full-service 332-bed acute-care hospital and tertiary referral center with more than 80 years of service. Memorial Hermann The Woodlands Medical Center, at 9250 Pinecroft Drive, describes a main hospital with 457 beds across three patient bed towers and a Level II trauma center, and Houston Methodist The Woodlands Hospital is at 17201 Interstate 45 S. CommonSpirit's Texas page lists The Woodlands and Conroe among the communities served by its Houston network, which includes the St. Luke's Health name. Network status is worth confirming before relying on a plan, since hospital systems and insurers change contracts.

The Texas Medical Center in Houston is a separate trip for specialty care; Memorial Hermann-Texas Medical Center describes itself as one of only two certified Level I trauma centers in the greater Houston area. The city states that the center of town is 15 miles west of Conroe and 50 miles northwest of Houston; no drive time is given here because it varies by hour and route. Medicare plan networks differ by hospital system. See Texas healthcare geography and Medicare.

Climate in Montgomery

Montgomery shares the hot, humid climate of the Houston area. NOAA's 1991-2020 normals for Houston Intercontinental Airport, the reference station used here, show an average July high of 94.5 degrees Fahrenheit and an August high of 94.9 degrees, with an average of 27.3 days in July and 27.1 in August at or above 90 degrees. January averages a high of 63.8 and a low of 43.7. Rainfall normals are 6.00 inches in June and 5.46 inches in October. The station is not in Montgomery, so local conditions can differ. See Texas summer heat and humidity by region.

Lifestyle and recreation in Montgomery

The city promotes its Historic Downtown District, shops, restaurants and wineries, and describes itself as the birthplace of the Texas Flag. Its pages list the Nat Hart Davis Pioneer Complex, city parks and a self-guided walking tour. The city's welcome page invites guests to enjoy its clean air and relaxed country lifestyle. Lake Conroe, built by the San Jacinto River Authority and the City of Houston between 1969 and 1973, covers a 21,000-acre area and extends about 21 miles from the dam; the authority lists public boat ramps and regulates docks, bulkheads and commercial operations on the lake.

Woodforest, the master plan with a Montgomery address, describes itself as 3,000 acres about 5 miles north of The Woodlands and 6 miles south of Lake Conroe, with 16 parks, more than 15 miles of trails, tennis and pickleball courts, pools and a Director of Fun. Woodforest Golf Club describes itself as a private golf club. Those distances and amenities are the developer's description. The city, the lake and Woodforest give a retiree three different settings with one mailing address, so visit each.

Housing in Montgomery

The housing stock is mostly new. The Census Bureau estimates that 54.9 percent of units were built from 2010 through 2019 and 6.4 percent from 2020 on, with 7.2 percent built in 1939 or earlier, which reflects the historic core. Woodforest's developer says it is planned for 5,500 homes and that model homes were priced from the low $300,000s. Builder prices are starting prices and change with plan, lot and options.

Water and utilities

Lake Conroe is part of the county's water story. The San Jacinto River Authority says that in September 2015 the lake began supplementing groundwater as a source of drinking water in Montgomery County after the Lone Star Groundwater Conservation District mandated a reduction in groundwater withdrawals, and that it entered voluntary agreements with over 90 public and private entities to build a treatment system using lake water. The City of Montgomery's Utility Billing Office handles water, wastewater and solid waste service; for a new account, the city's page lists a $30 non-refundable application fee and a $125 deposit for a residential homeowner, as of the date the page was captured. A utility district may bill separately in a master-planned community.

Airports and travel

Houston Airports operates George Bush Intercontinental Airport and William P. Hobby Airport. It describes IAH as 23 miles north of Downtown Houston, with 26 passenger airlines and nonstop service to more than 189 destinations, and Hobby as having 7 passenger airlines and nonstop flights to 81 destinations. The official pages give no drive time from Montgomery, so test the route at the hours you would travel.

Places near Montgomery

• ConroeThe Montgomery County seat on Lake Conroe, an incorporated city with its own tax rate, a 332-bed hospital in town, a lower cost of housing than neighboring The Woodlands, and lake and flood context shaped by a reservoir the San Jacinto River Authority operates.
• The WoodlandsA large planned township north of Houston, split between Montgomery and Harris counties, with no city government, a township tax layered on county, school and district taxes, two major hospital campuses in town, and flood and hurricane exposure that depends on the individual parcel.

Guides relevant to Montgomery

• 55-plus communities versus all-age master plans in Texas
• Texas healthcare geography and Medicare network considerations
• Texas homestead exemption, the age-65 exemption and the school tax ceiling
• Texas MUDs, PIDs and special districts: how to read the bill and the closing disclosure
• Texas property taxes and appraisal districts: how to compare actual total tax bills