Cost of Living in Alabama [2025]
If you're searching for an affordable lifestyle with Southern charm, rolling hills, and a rich blend of cultural traditions, Alabama's cost of living delivers. The Heart of Dixie offers everything from music at the Muscle Shoals to the Gulf Coast beaches of Mobile with room in your budget for fun at the beach, museums, and concerts.
Whether you're eyeing the bustling city of Birmingham or the laid-back lifestyle of Montgomery, Alabama combines budget-friendly living with deep-rooted history. But just how far does your dollar go? Let’s break down the numbers and see what the cost of living in Alabama is really like for renters.
Cost of Living in Alabama
What Is the Cost of Living in Alabama?
We've got good news if you’re budget-conscious: Alabama is one of the most affordable states in the country. According to Sperling’s Best Places, Alabama’s cost of living is about 15.9% lower than the national average with relatively affordable rents and housing prices. Here's a look at how the major categories stack up:
You'll find that housing prices in Alabama are a big win here, especially in smaller cities and rural areas. Costs in some metros are rising, but Alabama still delivers some serious value compared to most of the U.S.
| Cost of Living | Alabama | U.S. |
|---|---|---|
| Overall | 84.1 | 100 |
| Grocery | 94.4 | 100 |
| Health | 118.9 | 100 |
| Housing | 56.6 | 100 |
| Median Home Cost | $214,000 | $338,100 |
| Utilities | 101.2 | 100 |
| Transportation | 85.9 | 100 |
| Miscellaneous | 114.3 | 100 |
Where Is the Cost of Living Highest in Alabama?
If you're exploring the cost of living in Alabama, you'll spend the most in areas like Huntsville and Birmingham and its direct suburbs. Huntsville is among the most expensive places to live, which is a hub for engineering and aerospace jobs.
The cost of living in Huntsville is around 5.8% lower than the U.S. average, but 12% higher than the state average. It offers impressive affordability considering its strong job market, highly-rated schools, and growing economy. Here's how the cost of living in Huntsville breaks down:
| Cost of Living | Huntsville | AL | U.S. |
|---|---|---|---|
| Overall | 94.2 | 84.1 | 100 |
| Grocery | 96.0 | 94.4 | 100 |
| Health | 123.8 | 118.9 | 100 |
| Housing | 76.6 | 56.6 | 100 |
| Median Home Cost | $259,100 | $214,000 | $338,100 |
| Utilities | 96.2 | 101.2 | 100 |
| Transportation | 80.6 | 85.9 | 100 |
| Miscellaneous | 85.6 | 71.0 | 100 |
Where Is the Cost of Living Lowest in Alabama?
If you're attracted to moving to the Heart of Dixie for its affordability, towns like Anniston and Gadsden offer some of the lowest living costs in Alabama. You'll find budget-friendly housing, smaller-town charm, and easy access to outdoor adventure. Smaller Alabama towns may not offer the same job opportunities as the bigger cities, but they make up for it with charm, space, and affordability.
Anniston's cost of living is 21.1% lower than the U.S. average and 6.2% lower than the state average. Here's a look at how the cost of living breaks down across different categories:
| Cost of Living | Anniston | AL | U.S. |
|---|---|---|---|
| Overall | 78.9 | 84.1 | 100 |
| Grocery | 93.4 | 94.4 | 100 |
| Health | 117.0 | 118.9 | 100 |
| Housing | 34.8 | 56.6 | 100 |
| Median Home Cost | $120,400 | $214,000 | $338,100 |
| Utilities | 101.6 | 101.2 | 100 |
| Transportation | 82.7 | 85.9 | 100 |
| Miscellaneous | 72.6 | 71.0 | 100 |
How Much Is Rent in Alabama?
Renters will find that Alabama offers wallet-friendly options throughout the state. As of April 2025, the average rent in Alabama is around $1,023 per month. One-bedrooms hover around $842, while two-bedrooms average $1,018. Here’s how that breaks down:
| City | Median 1-Bedroom Rent | Median 2-Bedroom Rent |
|---|---|---|
| Overall | $795 | $931 |
| Huntsville, AL | $862 | $1,287 |
| Birmingham, AL | $1,051 | $1,115 |
| Mobile, AL | $858 | $1,069 |
How Much Does It Cost to Rent a 1-Bedroom in Alabama?
Renting a one-bedroom apartment in Alabama costs an average of $842 per month. That number climbs in metro areas but remains accessible in smaller towns.
| City | Median 1-Bedroom Rent |
|---|---|
| Overall | $795 |
| Huntsville, AL | $862 |
| Birmingham, AL | $1,051 |
| Mobile, AL | $858 |
How Much Does It Cost to Rent a 2-Bedroom in Alabama?
For renters needing more space, two-bedroom apartments in Alabama cost around $1,018 per month, depending on location.
| City | Median 2-Bedroom Rent |
|---|---|
| Overall | $931 |
| Huntsville, AL | $1,287 |
| Birmingham, AL | $1,115 |
| Mobile, AL | $1,069 |
How Much Does a House Cost in Alabama
Homebuyers will find Alabama’s market one of the most accessible in the U.S. Here’s what the median home price looks like across the state:
Outside of fast-growing cities, Alabama remains one of the few places where homeownership is still well within reach for middle-income earners.
| City | Median Home Price |
|---|---|
| Overall | $214,000 |
| Huntsville, AL | $259,100 |
| Birmingham, AL | $101,300 |
| Mobile, AL | $176,000 |
What Salary Do You Need to Live in Alabama?
Now that you have an idea of the cost of living in different areas of Alabama, you can start to pull together a budget for your apartment. We recommend using the 30% rule, which states you need to earn at least $31,800 per year, $2,650 per month, or about $15.30 per hour to comfortably afford Alabama's average one-bedroom rent of $795 per month.
It's also a good idea to consider MIT’s Living Wage data. Their research shows the living wage in Alabama for a single adult is $20.50/hour. That figure covers essential needs but doesn’t include things like debt, savings, or leisure.
There's good news for job hunters: The U.S. Census Bureau reports the median household income in Alabama is $62,027 per year, 5168.92 per month, or about $29.82 per hour, putting you well above the living wage or even our recommended 30% rule.
How Much Does Transportation Cost in Alabama?
Transportation costs can vary based on where you’re living and whether you own a vehicle. Single adults in Alabama will spend an average of $10,561 per year on transportation and a family of two working adults and two children will spend around $17,715 annually.
Public transit options are limited outside urban areas, but Birmingham does have a fixed-route bus system with monthly fares starting at $44. Huntsville's Orbit public transportation system is just $30 for a monthly pass.
How Much Do Groceries Cost in Alabama?
If you love dining out, your in luck. Food costs in Alabama are relatively low, and local markets and Southern comfort food make eating out affordable. The state even has a growing beignet scene, particularly in Mobile. We took a look at what a mid-range three-course dinner for two might cost, based on Numbeo's latest data:
- Birmingham: $60
- Huntsville: $62.50
- Mobile: $60
These prices don't include tip or extras like alcohol. You can save by focusing on cooking at home and trying to cook up regional dishes on your own. According to MIT's living wage data, a single adult in Alabama spends about $4,280 annually on groceries, while a family of four can expect to spend around $12,547 per year.
How Much Is Child Care in Alabama?
Child care is usually the most expensive part of a family's budget behind rent or a mortgage. In Alabama, the average cost for child care for one child is $7,614 and two children is $14,758 per year. Whether or not you live in a more expensive area like Huntsville or rural area will also directly impact how much you pay in child care. These numbers will also vary depending on your specific care needs, but options like family care centers, part-time care, and childcare assistance programs can help reduce your monthly expenses to put breathing room in your budget.
How Much Does Healthcare Cost in Alabama?
Taking care of your health is always paramount, and can save you a bundle in the long-run. Alabama’s healthcare costs are just below the national average. A single adult pays about $3,275 annually, while a family of four will spend around $9,902. You can also look to the Alabama Association of Free and Charitable Clinics here.
How Much Are Utilities in Alabama?
With Alabama’s humid summers and mild winters, your apartment's average utility bill can fluctuate throughout the year, but costs are generally below the national average of $253.14 a month. Keep in mind that temperatures in July and August in Alabama can reach the triple digits, even without accounting for the humidity. Here's a breakdown of what to expect in different areas of Alabama:
- Birmingham: $216.14 (+ $102.07 for a mobile phone monthly plan with calls and 10GB+ Data and Internet of 60 Mbps or more, unlimited data, cable/ADSL)
- Huntsville: $180.00 (+ $118.89 for a mobile phone monthly plan with calls and 10GB+ Data and Internet of 60 Mbps or more, unlimited data, cable/ADSL)
- Mobile: $156.25 (+ $122.92 for a mobile phone monthly plan with calls and 10GB+ Data and Internet of 60 Mbps or more, unlimited data, cable/ADSL)
If you're on a tight budget, you can explore options like living with a roommate or bundling your Internet, phone, and cable together.
Fitness and Entertainment
If you're looking to stay active and entertained in Alabama, you have plenty of options, from nature trails to beach days. You can also factor in a gym membership, look for an on-site fitness center in your apartment complex, or create an at-home gym:
- Birmingham: $47.50/month
- Huntsville: $44/month
- Mobile: $36.12/month
You can also get an idea of what a typical evening out looks like by comparing average costs at the cinema. Not including snacks and drinks, you'll spend:
- Birmingham: $13.50/per ticket
- Huntsville: $9.25/per ticket
- Mobile: $12/per ticket
State Parks in Alabama
If you want to do more with your budget, you can enjoy Alabama’s state parks that are an underrated gem. With just a few dollars for entry or an affordable annual pass, you can enjoy:
- Cheaha State Park: Alabama’s highest point with amazing hiking.
- Gulf State Park: Beaches, trails, and cabins near the Gulf.
- Monte Sano State Park: Scenic views and serene nature near Huntsville.
Alabama also has temperate year round weather, except during the peak of summer. You can lace up your running shoes for free, bike, or hike for zero dollars.
How Much Are Taxes in Alabama?
It's a good idea to consider what you'll pay in taxes when living in Alabama. The state has a progressive income tax that ranges from 2% to 5%. The state sales tax is 4%, but local sales tax rates can push it as high as 11%. If you're planning to buy a property at some point, you'll spend the lowest in the country, averaging just 0.42%.
Ready to Move to Alabama?
Whether you’re drawn to Birmingham’s skyline, the laid-back coastal life of Mobile, or the affordable charm of smaller towns, Alabama delivers great value across the board. When it comes to balancing lifestyle and cost of living, this Southern state checks a lot of boxes. Start your rental search today and discover your place in the Heart of Dixie.
FAQs: Cost of Living in Alabama
How expensive is an apartment in Alabama?
The overall rent in Alabama for a one-bedroom is $795 per month. A one-bedroom apartment in Huntsville is $862 per month and a two-bedroom is $1,287. A one-bedroom apartment in Birmingham is $1,051 a month and a two-bedroom is $1,115. A one-bedroom apartment in Mobile is $858 per month and a two-bedroom is $1,069 per month.
What is the cheapest rent in Alabama?
The cheapest rent in Alabama is for a one-bedroom apartment. The overall rent in the state for a one-bedroom is $795 per month. A one-bedroom apartment in Huntsville is $862 per month. A one-bedroom apartment in Birmingham is $1,051 a month and a one-bedroom apartment in Mobile is $858 per month.
Is it expensive to live in Alabama?
How much you spend in Alabama will largely depend on where you live. Across the state, the average rental price of a one-bedroom apartment is $795 per month, but you'll spend $1,051 a month in Birmingham. A single adult will spend an average of $4,280 on food, $10,561 on transportation, and $3,275 on medical each year while living in Alabama.
What is the population of Alabama?
According to the U.S. Census Bureau, the population of Alabama as of 2024 was 5,157,699.
What is a good salary in Alabama?
We encourage renters to follow the 30% rule and spend no more than 30% of their income on rent. If the overall average for a one-bedroom apartment in Alabama is $795 per month, you'll need to earn at least $31,800 per year, $2,650 per month, or about $15.30 per hour to comfortably afford Alabama's average one-bedroom rent of $795 per month.
However, the U.S. Census Bureau reports the median household income in Alabama is $62,027 per year, 5168.92 per month, or about $29.82 per hour, putting you well above the living wage or even our recommended 30% rule.
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