The median home price in Alabama is $263,400, which has increased by 3.2% since the last year. The Alabama housing market has witnessed a 1.1% year-over-year decline in the number of homes listed. With a 4-month supply left, you will get your choice of house with the seller being more willing to negotiate.
As per our research, home prices are relatively higher in near the coastal and western areas near Jackson, AL. On the other hand, as you move towards the central and eastern areas of the Yellowhammer State, like Stevenson, you can find cheaper housing options.
4 Reasons to live in Alabama 🏖️
- Cheaper Houses: The median home sale price in Alabama is ~263K. But you can get houses between $142K and $224K in cities like Bessemer, Attalla, and Talladega.
- Tax Benefits: Alabama exempts overtime pay from state income tax, providing relief to hourly paid employees.
- Affordable Grocery: Grocery in cities that are listed below is up to 8% lower than the national average.
- Cheaper Rentals: The rent prices of these cities are lower than national average. You can save up to $800 per month in rent.
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View 317 Homes For Sale in Alabama
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Cheapest Places to Live in Alabama in 2024
This list provides insights into the average household income, median listing price, population, unemployment rate, and poverty rate of the cities.
| City | Median Household Income | Median Home Value | Population | Unemployment Rate | Poverty Rate |
|---|---|---|---|---|---|
| Selma | $31,084 | $55,185 | 17,023 | 6.7% | 29.5% |
| Gadsden | $39,696 | $88,694 | 33,335 | 2.8% | 25.1% |
| Bessemer | $34,953 | $113,224 | 25,264 | 3.9% | 32.0% |
| Attalla | $51,875 | $124,075 | 5,836 | 4.6% | 11.1% |
| Anniston | $45,642 | $124,627 | 21,182 | 2.8% | 22.1% |
| Birmingham | $42,464 | $126,558 | 196,910 | 3.1% | 26.1% |
| Talladega | $37,945 | $144,610 | 14,674 | 2.7% | 28.8% |
7 Cheapest Places to Live in AL
The annual population growth of 6% since 2010 is reflective of people’s intention to move to Alabama. If you’re considering shifting to the Yellowhammer State, here are some cities that offer affordable living options:
1. Selma
| 🟢 Cost of Living Compared to National Average | 29.9%⬇️ |
| 🏡 Median Home Price | $55,185 |
| 💲 Median Rent | $575 |
| 🌅 Known For | Edmund Pettus Bridge |
Selma is an affordable place to live in Alabama. Its median house rent ranges from $395 – $580. It also offers affordable transportation which is 32.1% lower than the national average.
Selma played a pivotal role in the Civil Rights Movement. The Selma to Montgomery marches, in particular, contributed to its rich historical heritage and sense of community pride.
» Homes for Sale in Selma, AL: Find your dream home in this city.
2. Gadsden
| 🟢 Cost of Living Compared to National Average | 20.6%⬇️ |
| 🏡 Median Home Price | $88,694 |
| 💲 Median Rent | $895 |
| 🏞️ Known For | Noccalula Falls Park |
Gadsden is one of the most budget-friendly rental destinations in Alabama with an average home rent of $495 – $4,500. It also offers affordable grocery, which is 7.8% lower than the national average.
Gadsden offers a diverse range of outdoor recreational opportunities, including access to the Coosa River and nearby Noccalula Falls Park. These attractions make it an ideal destination for nature enthusiasts seeking adventure and natural beauty.
» Homes for Sale in Gadsden, AL: Browse thousands of property listings in Gadsden.
3. Bessemer
| 🟢 Cost of Living Compared to National Average | 13%⬇️ |
| 🏡 Median Home Price | $113,224 |
| 💲 Median Rent | $1,157 |
| 🏖️ Known For | Bessemer Hall of History Museum |
With rental costs below the national average, Bessemer stands as one of the most affordable cities to live in Alabama. The house rent price is between $690 – $2,500.
Situated amidst the picturesque landscapes of Alabama, Bessemer offers ample opportunities for outdoor activities. Residents can enjoy hiking, fishing, and exploring nearby parks and trails.
» Homes for Sale in Bessemer, AL: View all the properties for sale in this city.
4. Attalla
| 🟢 Cost of Living Compared to National Average | 20.6%⬇️ |
| 🏡 Median Home Price | $124,075 |
| 💲 Median Rent | $813 |
| 🏖️ Known For | Noccalula Falls Park |
Attalla offers budget-friendly living with a median rent that is $1,187 lower than the national median. Moreover, the housing costs being 72.2% below the national average in this city.
Attalla is a great place to live due to its rich history and natural beauty. The city offers a charming southern atmosphere, making it an attractive destination for residents and visitors alike
» Homes for Sale in Attalla, AL: Browse through thousands of affordable properties.
5. Anniston
| 🟢 Cost of Living Compared to National Average | 21.1%⬇️ |
| 🏡 Median Home Price | $124,627 |
| 💲 Median Rent | $750 |
| 🎨 Known For | Metal Products and Textiles |
Often referred to as the ‘The Model City,’ Anniston’s cost of living is 21.1% lower than the national average. The median home rent in the city range between $500 – $1,750.
Anniston’s affordable food, health, housing, and transportation facilities make the city one of the cheapest places to live in the US.
» Homes for Sale in Anniston, AL: Browse through thousands of properties in Anniston.
6. Birmingham
| 🟢 Cost of Living Compared to National Average | 13%⬇️ |
| 🏡 Median Home Price | $126,558 |
| 💲 Median Rent | $1,100 |
| 🏫 Known For | Vulcan Park and Museum |
The house rent in Birmingham is between $400 – $7,564. With an average household income of $42,464, you can comfortably live in this city.
Birmingham is home to several esteemed educational institutions like Newman University and the University of Birmingham. These institutes provide quality education opportunities for students of all ages.
» Homes for Sale in Birmingham, AL: Find a home in one of the cheapest places to live in Alabama.
7. Talladega
| 🟢 Cost of Living Compared to National Average | 23.3%⬇️ |
| 🏡 Median Home Price | $144,610 |
| 💲 Median Rent | $925 |
| 🖼️ Known For | Talladega Superspeedway |
Talladega is indeed one of the best places to live in Alabama, with a median home price of $144,610. The annual expenditure on food for an individual amounts to $3,926. This makes it one of the most budget-friendly options across the country.
Talladega maintains a decent safety rating, with a score of 77.4. This makes it a secure place to live.
» Homes for Sale in Talladega, AL: Get yourself a home in Talladega.
- 🏡 Do You Need Professional Assistance While Buying a Home?
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The Bottom Line
The cost of living in Alabama is 11% higher than the national average. Nevertheless, it is also home to some of the most expensive cities in America. However, if you want to shift to Alabama, you can find affordable housing in cities like Selma, Gadsden, and Bessemer.
Cities like Birmingham and Talladega have a slightly expensive cost of living but provide better job opportunities. You must research the city’s home prices and living costs before relocating.
Find Homes for Sale in AL Under Your Specific Budget
Find an Affordable House With Houzeo
With thousands of property listings, Houzeo.com is one of the biggest property listing sites in the US. Find condos, townhouses, co-ops, and other types of homes for sale in Alabama on Houzeo.
Find Your Dream Home 🏡
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Find Your Dream Home 🏡
View 317 Homes For Sale in Alabama
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» Need More Clarity? Read these exclusive Houzeo reviews and learn why the platform is the best in America’s competitive housing market.
Research Methodology
We’ve created this list by considering factors such as cost of living, median home price, and rental price range. We have also accounted for the population, median household income, poverty rate, and unemployment rate in these cities.
To compile this list of the cheapest areas to live in Alabama, we have drawn data from the Economic Research Institute, World Population Review, Rent Cafe, and Zillow, Best Places.
FAQs
What is the cheapest place to live in Alabama?
The cheapest place to live in Alabama is Selma.
» 7 Cheapest Places to Live in Alabama: Find out the other cheapest places to live in Alabama!
Is Alabama the cheapest place to live in?
No, it is not. The median home value is $263,400. If you're looking for cities with affordable housing and a low cost of living, you can try your luck in some of these cheapest places in America.
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