Want Alabama’s Gulf Coast lifestyle without Mountain Brook’s high prices? Don’t give up on the dream. You can afford a house in the Cotton State if you know where to look.
Your perfect home could be a family-friendly house in Gadsden or a starter home in Montgomery, Alabama’s government and military hub. If you’re retiring, look at homes for sale in Dothan to enjoy a low-cost coastal lifestyle, with median home prices under $238,250
After assessing hundreds of cities, we’ve ranked the 10 most affordable places to live in Alabama to help you find a home that fits your budget.
Houzeo is America’s best home buying and selling platform.
For Home Sellers: List your home for a Flat Fee, and save 2.5% to 5.5% on the listing agent commission! That’s thousands of dollars extra in your pocket.
For Home Buyers: Houzeo has the most number of houses for sale in Alabama. Start your dream home search now!
Yes! You can list your home for sale or search millions of homes on the Houzeo mobile app!
Download now on the Apple App Store or the Google Play Store.
Key Takeaways
- Selma is the most affordable city: Selma’s cost of living is 5% lower than the state average. With a median home price of $119,000, it is the cheapest place to live in Alabama.
- Birmingham is the best city for young professionals: With tech and finance driving the economy, Birmingham is a prime spot to build a career.
- For families, Gadsden is a great choice: With top-notch schools, safe neighborhoods, and active outdoor life, Gadsden is an ideal place to raise a family on a budget.
- Retirees should consider Decatur: Retirees can enjoy a relaxed lakeside lifestyle, with homes selling at a median price of $223,247.
- Don’t forget Alabama’s “vehicle premium”: Full-coverage car insurance averages $2,148 annually, 21% higher than the national average.
Cheapest Places to Live in Alabama in 2026
| City | Median Home Value | Median House Rent | Cost of Living Compared to State Average | Affordability Score (Out of 10) |
|---|---|---|---|---|
| 1. Selma | $119,000 | $784 | 5% ⬇️ | 8.3 |
| 2. Gadsden | $132,500 | $850 | 3% ⬇️ | 8.2 |
| 3. Anniston | $172,000 | $850 | 4% ⬇️ | 7.9 |
| 4. Talladega | $188,750 | $1,000 | 10% ⬇️ | 7.5 |
| 5. Birmingham | $160,000 | $1,150 | 4% ⬆️ | 7.3 |
| 6. Bessemer | $187,500 | $1,036 | 2% ⬆️ | 7.2 |
| 7. Attalla | $197,000 | $1,050 | 6% ⬇️ | 7.2 |
| 8. Montgomery | $190,000 | $1,295 | 2% ⬆️ | 6.6 |
| 9. Dothan | $238,250 | $1,125 | 1% ⬇️ | 6.4 |
| 10. Tuscaloosa | $354,000 | $1,125 | 1% ⬆️ | 3.9 |
How We Ranked the Most Affordable Places to Live in Alabama
To identify the cheap places to live in Alabama, we carried out an in-depth analysis using multiple reliable data sources and indicators of affordability.
Data Sources:
- Median Home Prices: We used Houzeo’s Alabama Housing Market report and double-checked the numbers with the data from Alabama Center for Real Estate (ACRE) at the University of Alabama.
- Median Rent: We got the rent data from C2ER, which publishes the national Cost of Living Index. This was verified every few months to make sure it’s accurate.
- Overall Cost of Living: We covered 6 big spending categories— housing, groceries, utilities, transportation, healthcare, and miscellaneous goods— from C2ER and Houzeo’s Cost of Living in Alabama Calculator. We then compared everything to the U.S. average of 100.
We studied housing data from 2022 to 2025 to identify cities that remained affordable over time, not just during short dips in prices. Furthermore, each city’s data was also cross-checked with HUD and state economic reports.
All our information is up to date as of 2025, ensuring you receive the most current insights.
Affordability Scoring:
We built a simple scoring system that focuses on what really matters:
- Median Home Price (40%)
- Median Rent (35%)
- Cost of Living (25%)
This way, we can clearly show which Alabama cities give you the best value for your money. You can also check out our score breakdown to see how each city was ranked.
Image credits: All blog images are sourced from Freepik.
10 Cheapest Places to Live in Alabama
Selma is the cheapest city to live in Alabama. The city sits along the Alabama River and contains the state’s largest contiguous historic district. Affordable homes for sale in Selma offer residents proximity to civil rights landmarks like the Edmund Pettus Bridge and Brown Chapel AME Church.
- Old Town Historic District: This neighborhood encompasses Alabama’s largest historic district. Residents live near the Vaughan-Smitherman Museum, Sturdivant Hall, the First Baptist Church, and Selma Interpretive Center.
- Riverview Historic District: An 86-acre National Register neighborhood along Selma Avenue. The area sits near the Alabama River with proximity to Valley Creek Park.
- Selma West: A primarily residential area providing affordable housing options with convenient access to Cedar Park and Meadowview Elementary School. This neighborhood offers proximity to Wallace Community College Selma for workforce training and education.
- Job Market: Selma’s economy centers on healthcare, education, and manufacturing. Vaughan Regional Medical Center employs over 600 people as the city’s largest employer. The Selma City School District provides substantial education sector employment.
- Recreation: Paul M. Grist State Park, located just north of the city, offers 100 acres with swimming, fishing, boating, camping, and hiking opportunities. Within city limits, residents enjoy Dinkins Pool during summer months, the Softball Complex for recreational leagues.
- High Poverty Rate: Dallas County reports a 31.4% poverty rate, the highest in Alabama, with limited economic opportunities.
- Struggling Schools: Public schools consistently rank in Alabama’s bottom tier, with Selma High School and R.B. Hudson Middle School historically categorized as failing.
- Limited Job Opportunities: Unemployment hovers around 12%, more than twice the national average, with few career advancement options.
Positioned along the scenic Coosa River, Noccalula Falls Park is Gadsen’s crown jewel. Homes for sale in Gadsden attract outdoor enthusiasts drawn to the 90-foot waterfall, 500 acres of parkland, and over 15 miles of mountain biking and hiking trails through Black Creek Gorge.
- Alabama City: A historic working-class neighborhood that developed alongside Gadsden’s industrial growth. The area provides access to Gadsden State Community College for education with nearby Moragne Park offering recreational amenities.
- East Gadsden: This established residential area is close the Gadsden Museum of Art, and the Walnut Gallery. Residents enjoy James D. Martin Wildlife Park which extends into Lake Gadsden, perfect for biking and lakeside picnicking.
- Walnut Park: A family-oriented neighborhood near the Coosa River Recreation Area. It offers easy access to Noccalula Falls Park’s camping, pioneer village, botanical gardens, and the park’s famous Christmas at the Falls celebration.
- Job Market: Gadsden’s economy has transitioned from manufacturing to diversified sectors including healthcare, education, and retail. Northeast Alabama Regional Medical, Gadsden City Schools, and Gadsden State Community College are the the major employers, along with Phoenix Investor’s manufacturing plant.
- Recreation: Noccalula Falls Park dominates outdoor recreation with its iconic 90-foot waterfall, Gilliland-Reese Covered Bridge, and Pioneer Village. The Black Creek Trail system offers 15+ miles of single-track mountain biking. Downtown features the Gadsden Museum of Art with rotating exhibitions.
- Former Manufacturing Hub: The 2020 Goodyear plant closure eliminated 1,200 jobs, leaving economic uncertainty despite redevelopment promises.
- Higher Utilities: Utility costs run 30% above the national average, offsetting some housing savings.
- Limited Career Advancement: Smaller job market with fewer high-wage professional opportunities compared to nearby Birmingham.
Often called “The Model City,” Anniston boasts of Berman Museum of World History and Anniston Museum of Natural History. With Cheaha State Park just 20 miles away and the Coldwater Mountain bike preserve nearby, homes for sale in Anniston offers affordable living with proximity to world-class outdoor recreation
- Oxanna: A south-central neighborhood with proximity to Regional Medical Center employment and easy access to Highway 78 for commuting to Birmingham or Atlanta.
- Blue Mountain: This is a rural neighborhood north of downtown. Residents enjoy quick access to Hospital Boulders rock climbing area on Lookout Mountain’s west brow. It also offers proximity to the scenic Chief Ladiga Trail for cycling.
- Lardent: A residential neighborhood situated near Jacksonville State University for educational access. he location offers convenient access to McClellan and proximity to both Talladega Superspeedway and Cheaha State Park for weekend recreation.
- Job Market: Northeast Alabama Regional Medical Center serves as Anniston’s largest employer, providing healthcare jobs across nursing, medical support, and administrative roles. Anniston City Schools employs substantial education staff, while the Anniston Army Depot continues defense industry operations.
- Recreation: Cheaha State Park, Alabama’s highest point at 2,407 feet, sits just 20 miles away offering hiking, camping, and stunning mountain vistas. Downtown’s Anniston Museum of Natural History houses natural history exhibits and a planetarium.
- Crime Rate Concerns: Property crime rates sit approximately 40% above national averages, with violent crime also elevated.
- Limited Public Transit: Heavy car dependence with minimal public transportation options, increasing transportation costs.
- Higher Utilities: Utility costs run approximately 8% above national averages, offsetting some housing cost savings.
Known worldwide as home to Talladega Superspeedway—NASCAR’s fastest and longest track—the city attracts motorsports enthusiasts. Homes for sale in Talladega are within minutes of the 392,000-acre Talladega National Forest and DeSoto Caverns Park’s underground wonders.
- Bemiston: A historic mill village established in 1929 by Bemis Brothers Bag Company, located just outside Talladega’s city limits near Highway 21. Residents benefit from access to the Talladega City School system and with proximity to the Ritz Theatre.
- Syclacauga: Located approximately 15 miles south of Talladega, this town of 12,000 offers a quiet, family-oriented atmosphere. Residents have easy access to B.B. Comer Elementary School and B.B. Comer Memorial High School.
- Meadowbrook: This neighborhood offers access to Talladega County Schools’ network of 18 campuses. The area provides convenient access to Logan Martin Lake’s 15,263 acres for boating and fishing.
- Job Market: Talladega County’s economy centers on automotive manufacturing, education, and healthcare. Major employers are Honda Manufacturing of Alabama, New South Enterprises and the Alabama Institute for Deaf and Blind.
- Recreation: Talladega Superspeedway hosts Monster Energy NASCAR Cup Series and Xfinity Series races. DeSoto Caverns Park in nearby Childersburg offers guided cave tours and gemstone mining. The CMP Talladega Marksmanship Park features state-of-the-art rifle, pistol, and shotgun ranges.
- Limited Entertainment Options: Small-town atmosphere with few restaurants, shopping centers, or nightlife venues beyond motorsports.
- Motorsport Noise & Traffic: Race weekends bring extreme traffic congestion and noise from the Superspeedway affecting quality of life.
- Extreme Weather Risk: 99% of properties face wildfire risk and 100% face major wind event risk over the next 30 years.
Birmingham is Alabama’s largest metro area with a low cost living and some of the most affordable homes in Alabama. It’s attractive for those seeking big-city amenities at affordable prices. The city balances affordability with culture through the Birmingham Museum of Art, vibrant food scenes in neighborhoods like Avondale.
- Apple Valley: One of Birmingham’s most affordable neighborhoods located in the northern part of the city near Center Point. It offers proximity to Center Point Center shopping plaza, easy access to I-59, and Birmingham-Shuttlesworth International Airport within 15 minutes.
- Liberty Highlands: A residential neighborhood in Birmingham’s southern region. Residents enjoy proximity to Brookwood Baptist Medical Center and Children’s of Alabama on Liberty Parkway.
- Penfield Park: A small neighborhood of 543 residents offering a sparse urban feel. It offers access to Birmingham’s extensive park system including Railroad Park downtown, Legion Field for sporting events, and the Birmingham Civil Rights District’s historic landmarks.
- Job Market: Birmingham’s economy thrives on diversified sectors led by healthcare, finance, manufacturing, and technology. University of Alabama at Birmingham, UAB Hospital, Regions Financial Corporation, and Wells Fargo are the major employers.
- Recreation: Birmingham’s cultural scene centers on the Birmingham Museum of Art, Alabama Theatre’s restored 1927 movie palace, and the Birmingham Civil Rights Institute. Oak Mountain State Park offers hiking, mountain biking, fishing, and the state’s only golf course.
- Higher Sales Tax: Combined 10% sales tax (state, county, city) significantly exceeds the 7.3% national average.
- Traffic Congestion: I-20/I-59 interchange and limited public transit create rush-hour bottlenecks despite being smaller than major metros.
- Summer Heat & Humidity: Long, hot, muggy summers with temperatures regularly exceeding 90°F and high humidity.
Located just 15 miles southwest of Birmingham with I-20/I-59 access, this historic steel town provides small-city living within Metropolitan Birmingham’s job market. Bessemer combines industrial heritage with modern conveniences including shopping at Bessemer Square Mall, and local parks like DeBardeleben Park.
- Oakwood: Part of the Jonesboro/Oakwood area featuring primarily single-family homes and mobile homes. It is located near McAdory High School, DeBardeleben Park with baseball fields and playgrounds, and convenient I-459 access.
- Brickyard Junction: A historic working-class neighborhood reflecting Bessemer’s industrial past. Residents live close to the revitalized Railroad Depot district, Bessemer Hall of History Museum, and Alabama Avenue’s local shops and restaurants.
- Hopewell: A residential area on Bessemer’s eastern edge with convenient access to both Bessemer and Birmingham employment centers. The neighborhood is near Jonesboro Elementary School and Splash Adventure Water Park.
- Job Market: Bessemer’s economy centers on manufacturing, logistics, and service sectors with proximity to Birmingham’s larger job market. Mercedes-Benz U.S. International in nearby Vance remains the region’s manufacturing anchor. J.M. Smucker’s massive $1.1 billion McCalla plant is also a major employer.
- Recreation: Tannehill Ironworks State Park’s 1,500 acres showcase Alabama’s iron-making heritage. The DeBardeleben Park offers baseball diamonds, playgrounds, and picnic areas for family recreation. Bessemer’s historic downtown features the Bright Star Restaurant and the restored Bessemer Hall of History.
- Limited Economic Growth: Former steel town struggling to redefine economy with few high-wage professional opportunities.
- School Performance Issues: Bessemer City Schools rank among Alabama’s lower-performing districts with funding challenges.
- Industrial Legacy Concerns: Historical environmental issues from steel manufacturing era persist in certain areas despite cleanup efforts.
Attalla delivers exceptional affordability positioning homes for sale in Attalla among Alabama’s most budget-friendly options. The city is just minutes from Gadsden and the spectacular Noccalula Falls Park. It also offers access to Wills Creek Vineyards for weekend tastings and the 33-mile Chief Ladiga Trail.
- Curtiston: A quiet residential area within the Attalla city limits featuring affordable single-family homes. Residents benefit from proximity to Duck Springs Elementary School and easy access to Highway 431.
- Reece City: A small unincorporated community just outside Attalla with access to Attalla City Schools including Etowah High School and the Coosa River for fishing and boating.
- Downtown Attalla: The historic center along 4th Street Northwest featuring the city’s commercial district, Attalla City Hall, and the Attalla Public Library. It has close proximity to Etowah Middle School, making it convenient for families.
- Job Market: Attalla’s economy centers on small-scale manufacturing and service sectors, though employment opportunities remain limited within city limits. Max Packaging Co. and Crown Column & Millwork are the local employers. However, most Attalla residents commute to nearby Gadsden for employment.
- Recreation: Noccalula Falls Park in neighboring Gadsden serves as the primary outdoor attraction. Within Attalla, Moragne Park provides baseball diamonds, playgrounds, and picnic facilities. The Chief Ladiga Trail, Alabama’s first rail-trail, offers 33 miles of paved cycling and walking paths.
- Severely Limited Job Market: Tiny local economy with most residents commuting 30-60 minutes to Gadsden or Birmingham for employment.
- Limited Healthcare Access: No hospital within city limits; residents depend on Gadsden Regional Medical Center 6 miles away for emergency care.
- School Performance Concerns: While Attalla City Schools receive mixed reviews, proficiency rates lag state averages with limited advanced coursework.
As Alabama’s capital city, Montgomery delivers a cost of living 10% below the national average. The birthplace of the Civil Rights Movement features the Rosa Parks Museum and the National Memorial for Peace and Justice. Montgomery provides employment in government, defense, manufacturing, and healthcare.
- Carriage Hills: It’s Montgomery’s most affordable neighborhood with average rents around $736 monthly. It offers convenient access to Eastdale Mall, Baptist Health Medical Center South, and easy Highway 80 access.
- Woodley Park: A centrally located neighborhood situated near McGehee Road. Residents benefit from proximity to Faulkner University, Baldwin Arts & Academics Magnet School on Vaughn Road.
- Greystone: A residential community with a suburban feel, located in southeast Montgomery near Vaughn Road. The neighborhood provides access to Montgomery Public Schools including Park Crossing High School, and thee Montgomery Zoo.
- Job Market: Montgomery’s economy thrives on government, defense, manufacturing, and healthcare sectors. As the state capital, government employment dominates with thousands working for Alabama state agencies. Maxwell Air Force Base and Gunter Annex also employ over 12,500 military and civilian personnel.
- Recreation: Montgomery’s Civil Rights heritage centers on the Rosa Parks Museum, Dexter Avenue King Memorial Baptist Church, the National Memorial for Peace and Justice and the Legacy Museum.
- Summer Heat & Humidity: Long, oppressive summers with temperatures regularly exceeding 95°F and high humidity from May through September.
- Limited Public Transit: Montgomery Area Transit System (MATS) bus service is minimal with infrequent routes, requiring car dependence.
- Economic Inequality: Approximately 19% poverty rate with stark wealth disparities between neighborhoods affecting schools and services.
Known as the “Peanut Capital of the World,” Dothan offers proximity to Gulf beaches, Wiregrass Museum of Art, and Dothan Area Botanical Gardens’ 50 acres of themed gardens. Dothan balances Southern hospitality with recreational amenities and tri-state accessibility.
- Ardilla: One of Dothan’s most affordable neighborhoods. It offers convenient access to Westgate Park’s water park and sports facilities, proximity to Dothan City Schools including Beverlye Magnet School.
- Westgate: The community centers around Westgate Park offering a seasonal water park with slides and pools. Plus proximity to top-rated schools including Highlands Elementary School.
- Chapelwood: It offers excellent access to Flowers Hospital on Ross Clark Circle for healthcare, Dothan High School and Northside Methodist Academy for education. Plus, they have Wiregrass Commons Mall for shopping, and the Forever Wild Trails system for hiking and nature observation.
- Job Market: Dothan’s economy centers on healthcare, defense, agriculture, and retail sectors. Major employers are Southeast Health Medical Center, Fort Novosel, Dothan City Schools and Houston County Schools.
- Recreation: The Wiregrass Museum of Art in downtown’s historic Poplar Head District features rotating contemporary art exhibitions. Dothan Area Botanical Gardens spans 50 acres with themed gardens including a Japanese garden. Westgate Park serves as the city’s premier recreation destination.
- Extreme Summer Heat: Temperatures regularly exceed 95°F with oppressive humidity June-September; residents joke about the “Dothan tax” of AC bills.
- Cultural & Entertainment Limits: Small-city atmosphere means limited nightlife, dining variety, and cultural attractions compared to larger metros.
- Distance from Major Cities: 90+ miles to Tallahassee, Montgomery, or Columbus creates isolation for specialized services or entertainment.
It is home to the University of Alabama and its legendary Crimson Tide football program. This city of 100,000 features the revitalized downtown Tuscaloosa district with breweries and farm-to-table restaurants.
- University Area: It is the heart of student and young professional living surrounding the University of Alabama campus. Residents enjoy walkable access to Bryant-Denny Stadium for football Saturdays and the Denny Chimes bell tower.
- Downtown Tuscaloosa: A revitalized urban core featuring the historic Druid City district. The neighborhood offers walkable access to Tuscaloosa Amphitheater hosting concerts along the Riverwalk.
- The Highlands: A newer suburban development on Tuscaloosa’s south side. It offers proximity to Highlands Elementary School and Tuscaloosa County schools including Paul W. Bryant High School.
- Job Market: Tuscaloosa’s economy thrives on education, healthcare, manufacturing, and service sectors. University of Alabama, UAB Hospital-Highlands, and Mercedes-Benz U.S. International in Vance are the major employers.
- Recreation: Bryant-Denny Stadium dominates fall recreation through campus on football Saturdays. Lake Tuscaloosa State Park offers 177 miles of shoreline for boating, fishing, swimming, and camping. The Tuscaloosa Symphony Orchestra performs at Moody Music Hall.
- Game Day Chaos: Football Saturdays bring 100,000+ fans creating gridlock traffic, $50+ parking fees, restaurant waits, and noise disrupting normal life.
- Student Population Fluctuations: Campus empties during summer and breaks, causing business closures and dead zones in student-heavy areas.
- Higher Utilities: Utility costs run 12% above national average, offsetting some housing savings, with high AC bills during long summers.
Pro Tip If you’re looking for a family-friendly community, Mountain Brook could be a great option. From Crestline to Irondale, you’ll find a wide range of affordable houses in Mountain Brook with strong rental potential.
Cedar Bluff (safety score of 90) and Cherokee (safety score of 78) are the cheapest and safest cities in Alabama. They offer low crime rates, family-friendly neighborhoods, and a lively, welcoming lifestyle.
Top 3 Cheapest Cities to Live in Alabama for Young Adults
When looking for the least expensive city to live in Alabama, you want more than just cheap rent. You want good jobs, a fun lifestyle, and a city where you can thrive. These Alabama cities deliver all three, with affordable housing and growing job markets.
| Rank | City | Why It’s Great for Young Adults |
|---|---|---|
| 1. | Huntsville | A strong tech and aerospace job base is reinforced by Huntsville Young Professionals, which hosts regular happy hours and sports outings, making the city appealing for buyers browsing homes for sale in Huntsville. |
| 2. | Birmingham | Healthcare, finance, and tech continue to drive job growth, while festivals and a lively arts scene keep the city dynamic, making homes for sale in Birmingham attractive to young professionals who want opportunity and culture in the same place. |
| 3. | Tuscaloosa | The University of Alabama fuels a high-energy culture of sports, nightlife at spots like Alcove and Rounders, and early-career opportunities, making homes for sale in Tuscaloosa especially appealing to young professionals who want work and social life in one place. |
Top 3 Inexpensive Places to Live in Alabama for Families
Alabama is a favorite among families for its warm climate, no state income tax, and affordable housing. These three cities offer low living costs and top-notch schools.
| Rank | City | Why It’s Great for Families |
|---|---|---|
| 1. | Gadsden | Family-friendly parks such as Convention Hall Park and the trails at Noccalula Falls pair with safe neighborhoods, making homes for sale in Gadsden a practical fit for families with kids. |
| 2. | Dothan | Low utility costs, solid schools, and community staples like the National Peanut Festival make daily life easy, while kid-friendly spaces at Wiregrass Commons Mall add convenient family time near homes for sale in Dothan. |
| 3. | Phenix City | Families drawn to homes for sale in Phenix City benefit from sub-$1,000 rentals, Chattahoochee River access, safe suburbs, and shared Columbus amenities like the RiverWalk and zoo on household incomes just above $30,000. |
3 Best Affordable Places to Live in Alabama for Retirees
Alabama is a retiree’s haven. In these cities, you can find affordable homes, accessible healthcare, and safe communities. There are also plenty of outdoor activities like kayaking, hiking, and picnics to enjoy a comfortable, active lifestyle.
| Rank | City | Why It’s Great for Retirees |
|---|---|---|
| 1. | Decatur | With a cost of living 16% below the national average, median prices around $223,247, rents near $1,038, and healthcare about 22% cheaper, homes for sale in Decatur attract budget-minded buyers who also enjoy riverside walks and fishing at Ingalls Harbor. |
| 2. | Bessemer | It is the cheapest place to retire in Alabama. A 15-minute drive links Bessemer to Birmingham’s healthcare and shopping, while nearby Bessemer City Park provides easy daily strolls for those considering homes for sale in Bessemer. |
| 3. | Cullman | Median home prices near $226,000 and comparatively low property taxes make Cullman an accessible place to buy. Strong senior living options and nearby recreation at Smith Lake for boating and family visits add everyday value for those browsing homes for sale in Cullman. |
3 Hidden Costs to Consider in Alabama
Even in Alabama’s most affordable cities, home prices aren’t the whole story. Be sure to factor in storm or flood insurance and local property taxes when evaluating the true cost of living.
- High Utility Bills: Electricity rates are 15 cents per kWh due to heavy reliance on coal and natural gas, pushing monthly utility costs to $398 for an average household.
- Vehicle Insurance Premiums: Full-coverage car insurance averages $2,148 annually, 21% higher than the national average, driven by frequent severe weather claims like tornadoes and higher accident rates.
- Home Insurance Premium: Alabama homeowners can pay around $3,190–$4,430 per year on home insurance depending on location, and costs can climb near the coast or in high-risk weather areas.
Quick Tip Alabama’s Homestead Exemption can reduce your taxable home value by up to $4,000 (state) and $2,000 (county). Seniors, disabled, or blind homeowners may qualify for larger exemptions or full property tax relief.
Savings Breakdown: Cheapest Cities in Alabama to Live In
Housing costs vary dramatically across Alabama. Selma residents save $4,443 monthly compared to Mountain Brook and $926 compared to Tuscaloosa. The following table breaks down these savings by median home price, monthly mortgage, property tax, insurance, and total monthly costs.
| City | Median Home Price | Avg. Monthly Mortgage | Insurance/taxes | Estimated Monthly Cost for a Single Person | Monthly Savings vs. Miami |
|---|---|---|---|---|---|
| Selma | $119,000 | $720 | $947 | $1,667 | $4,443 |
| Tuscaloosa | $354,000 | $1,676 | $917 | $2,593 | $3,517 |
| Mountain Brook | $833,525 | $3,839 | $2,271 | $6,110 | – |
Affordable Living Beyond Alabama
Not sure if the cheapest places in Alabama to live will fit your budget? Here are a few surrounding states that offer affordable housing, a strong job market, and stellar education, just like Alabama.
Affordable Housing
Mississippi mirrors Alabama in overall affordability, with costs 12% below the national average. These are cheapest places to live in Mississippi:
- Jackson: State capital with median home value $108,000 and rent near $1,200.
- Tupelo: A northern city known for Elvis’s birthplace, median home price is $284,000 and rent under $1,225.
- Greenville: Delta town with riverfront living and affordable homes at a median price of $129,900, rent nearly $999.
A Strong Job Market
Oklahoma matches Alabama’s strong job market with steady employment growth around 1.3% annually. Here are the cheapest places to live in Oklahoma:
- Tulsa: Median home price is $260,000, rent is $1,007, with booming tech/manufacturing hubs.
- Oklahoma City: Median home price is $264,240, rent is $1,044, with energy sector jobs (mainly oil and gas) and a growing economy.
- Norman: Median home price is $295,691, rent is $1,270, and University of Oklahoma drives education/tech jobs.
Stellar Education
West Virginia offers education quality comparable to Alabama’s, with public schools ranking similarly. Here are the three cheapest places to live in West Virginia:
- Huntington: Median home price is $190,000, average rent is $925, and home to Marshall University for higher education access.
- Charleston: Median home price is $176,500, average rent is $1,000, with good public schools in suburbs.
- Morgantown: Median home price is $221,000, average rent is $1,400 with WVU college town boosting education options.
Where Is the Cheapest Place to Live in Alabama?
Selma, Gadsden, and Anniston are the most affordable cities to live in Alabama. These areas offer more than low prices; they also provide steady job markets, plenty of recreation, and a cost of living 5% lower than the state norm.
Moving to Alabama also offers valuable tax advantages, with property taxes averaging at 0.36%. Whether you’re relocating or buying your first home, you can browse listings, compare prices, and make offers online.
Frequently Asked Questions
What is the cheapest place to live in Alabama?
The cheapest place to live in Alabama is Selma. It offers affordable housing at a median sale price of $119K
» 10 Cheapest Places to Live in Alabama: Find out the other cheapest places to live in Alabama.
Where is the best place to live in Alabama?
The best place to live in Alabama is Gadsden, followed by Montgomery, Talladega, Bessemer, Anniston, Birmingham, and Ozark.
What is the cost of living in Alabama?
The average cost to live in Alabama is 11.9% lower than the national average. However, utilities are 8% higher than the national average.
Where is the best place to retire in Alabama on a budget?
Decatur, Bessemer, and Cullman are among the best places to retire in Alabama on a budget. They offer affordable housing, small-town comfort, and easy access to medical care.
Which cities have the cheapest cost of living in Alabama?
