Cost of Living in Alabama
Updated November 2026 · population 5,086,768
Alabama prices are 11.2% below the US average (index 88.8), ranking 45th most expensive of 51 states and DC; housing is the biggest saving at 61.8, and a single adult's modelled budget at state-average prices is about $2,234 a month.
Prices by category
Alabama price index by category, US average = 100: All items 88.8, Housing (rents) 61.8, Goods 96.4, Utilities 84.6, Other services 96.7
| Area | All items |
|---|---|
| Alabama (whole state) | 88.8 |
| Metropolitan areas of Alabama | 90.2 |
| Nonmetropolitan areas of Alabama | 83.2 |
Cities in Alabama
Select a column heading to sort.
| Huntsville | 222,791 | 92.7 | $2,449 | $4,862 | $1,171 | $293,600 |
| Mobile | 203,416 | 90.0 | $2,296 | $4,666 | $1,068 | $193,300 |
| Birmingham | 198,173 | 90.3 | $2,409 | $4,612 | $1,107 | $158,800 |
| Montgomery | 197,494 | 90.3 | $2,251 | $4,586 | $1,089 | $161,900 |
| Tuscaloosa | 111,038 | 89.8 | $2,295 | $4,625 | $1,055 | $255,500 |
| Hoover | 92,642 | 93.9 | $2,673 | $5,253 | $1,457 | $412,200 |
| Auburn | 80,594 | 91.0 | $2,419 | $4,752 | $1,098 | $364,800 |
| Dothan | 71,514 | 87.9 | $2,101 | $4,500 | $960 | $194,000 |
| Madison | 60,106 | 96.1 | $2,774 | $5,388 | $1,453 | $398,800 |
| Decatur | 57,361 | 90.2 | $2,178 | $4,612 | $896 | $210,200 |
| Anniston | 21,271 | 88.3 | $2,055 | $4,324 | $799 | $158,800 |
| Fort Payne | 14,927 | 86.2 | $2,053 | $4,256 | $679 | $157,000 |
| Guntersville resort/outlier | 8,916 | 87.9 | $2,131 | $4,368 | $842 | $324,800 |
| Moulton | 3,401 | 87.1 | $1,950 | $4,130 | $655 | $123,900 |
Metro areas in Alabama
| Metro area | All items | Housing |
|---|---|---|
| Daphne-Fairhope-Foley, AL | 94.7 | 89.2 |
| Huntsville, AL | 93.1 | 77.9 |
| Birmingham, AL | 91.6 | 71.9 |
| Montgomery, AL | 89.7 | 64.3 |
| Columbus, GA-AL | 89.3 | 61.2 |
| Mobile, AL | 88.1 | 60.1 |
| Auburn-Opelika, AL | 87.9 | 62.1 |
| Tuscaloosa, AL | 87.7 | 58.2 |
| Decatur, AL | 87.2 | 58.1 |
| Anniston-Oxford, AL | 85.9 | 54.7 |
| Gadsden, AL | 85.7 | 53.7 |
| Florence-Muscle Shoals, AL | 84.8 | 47.7 |
| Dothan, AL | 83.8 | 46.9 |
BEA Regional Price Parities 2024 for metropolitan statistical areas that include part of Alabama.
Modelled monthly budget at Alabama average prices
1 adult · 1-bedroom · modelled estimate for Alabama (state average)
| Category | Per month | Per year | Share |
|---|---|---|---|
| Housing (rent) | $642 | $7,704 | 29% |
| Utilities | $262 | $3,144 | 12% |
| Food at home | $272 | $3,264 | 12% |
| Transportation | $557 | $6,684 | 25% |
| Health care | $340 | $4,080 | 15% |
| Clothing, personal care & supplies | $161 | $1,932 | 7% |
| Total | $2,234 | $26,808 | 100% |
2 adults · 2-bedroom · modelled estimate for Alabama (state average)
| Category | Per month | Per year | Share |
|---|---|---|---|
| Housing (rent) | $725 | $8,700 | 20% |
| Utilities | $412 | $4,944 | 11% |
| Food at home | $502 | $6,024 | 14% |
| Transportation | $1,102 | $13,224 | 30% |
| Health care | $630 | $7,560 | 17% |
| Clothing, personal care & supplies | $318 | $3,816 | 9% |
| Total | $3,689 | $44,268 | 100% |
2 adults + 2 children · 3-bedroom · modelled estimate for Alabama (state average)
| Category | Per month | Per year | Share |
|---|---|---|---|
| Housing (rent) | $852 | $10,224 | 19% |
| Utilities | $503 | $6,036 | 11% |
| Food at home | $716 | $8,592 | 16% |
| Transportation | $1,465 | $17,580 | 32% |
| Health care | $587 | $7,044 | 13% |
| Clothing, personal care & supplies | $410 | $4,920 | 9% |
| Total | $4,533 | $54,396 | 100% |
state figures Rents are Census ACS state medians by bedrooms. See the methodology.
Electricity and gas and inflation
Residential electricity
16.33¢/kWh, August 2026
12-month change +0.4% · US 18.16¢
Regular gasoline regional figure: Gulf Coast (PADD 3)
$3.64/gal, week of 2026-11-02
12-month change +44.8% · US $4.15
Consumer prices in the South region rose +3.4% over the 12 months to September 2026 (US +3.7%; BLS CPI-U).
Price level history
| Year | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|---|
| Alabama | 88.3 | 87.6 | 88.1 | 88.0 | 89.1 | 88.8 |
Change over the period: +0.5 points. Each year is measured relative to that year's US average.
Frequently asked questions
Is Alabama an expensive state to live in?
Alabama has a cost of living index of 88.8 (US = 100), 11.2% below the US average. It ranks 45th of 51 (1 = most expensive). Housing is 61.8 (rank 48), goods 96.4, utilities 84.6 and other services 96.7. Source: BEA Regional Price Parities 2024.
How much does it cost to live in Alabama?
At Alabama state-average prices, our modelled monthly budget is $2,234 for a single adult, $3,689 for a couple and $4,533 for a family of four, before taxes and child care. Costs vary widely within the state: metro areas average 90.2 and nonmetro areas 83.2.
What is the median rent and home value in Alabama?
The median gross rent in Alabama is $1,007 a month and the median home value is $209,900 (Census ACS 2020-2024). The typical renter spends 29.5% of income on rent.
Sources
- BEA Regional Price Parities 2024 (state, state metro and nonmetro portions, MSAs).
- U.S. Census Bureau ACS 5-year 2020-2024, state 01.
- EIA-861M residential electricity (August 2026); EIA weekly retail gasoline (Gulf Coast (PADD 3), 2026-11-02).
- BLS CPI-U, South region (September 2026).
Budgets are modelled estimates, not observed spending. Not financial advice. Methodology