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Cost of Living in
Alabama

Living cost is 11.99% lower than avg
Families spend upto $7,928/mo on avg
Homeowners spend $7,596/mo on avg
Renters spend $3,967/mo on avg

Cost of Living in
Alabama

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A Breakdown of the Cost of Living in Alabama

U.S. Avg.

Alabama

Difference Diff

Home Price

$532,491

$364,749.12

32%

Apartment Rent (per month)

$1,367

$987.15

28%

U.S. Avg.

Alabama

Difference Diff

Phone (per month)

$219.4

$191.16

13%

Total Energy (per month)

$200.23

$257.09

28%

U.S. Avg.

Alabama

Difference Diff

Grocery Staples

Corn Flakes (per box)

$6.79

$5.5

19%

Frozen Corn (per bag)

$2.41

$2.14

11%

Frozen Meal (per package)

$4.85

$3.68

24%

Cooking Oil (per bottle)

$6.16

$8.07

31%

Detergent (per bottle)

$19.51

$20.59

Facial Tissues (per box)

$2.85

$2.4

16%

Sweet Peas (per can)

$1.83

$1.65

10%

Sugar (per bag)

$4.66

$4.44

Bread (per loaf)

$3.87

$3.67

Frying Chicken (per lb)

$1.64

$1.54

Meat & Poultry

Chicken (per lb)

$1.71

$1.59

Steak (per lb)

$14.54

$17.76

22%

Sausage (per lb)

$5.23

$4.93

Ground Beef (per lb)

$8.61

$7.49

13%

Snacks & Beverages

Soft Drink (per bottle)

$3.45

$2.94

15%

Potato Chips (per bag)

$5.54

$4.27

23%

Coffee (per lb)

$6.55

$5.97

Fresh Orange Juice (per half gallon)

$5.22

Fruits & Vegetables

Peaches (per can)

$4.40

$2.92

34%

Lettuce (per head)

$1.98

$2.17

Bananas (per lb)

$0.64

$0.76

18%

Potatoes (per bag)

$5.58

$5.19

Dairy & Eggs

Parmesan Cheese (per lb)

$4.69

$4.66

Margarine (per lb)

$1.30

$1.3

Eggs (per dozen)

$3.98

$3.72

Whole Milk (per gallon)

$4.08

$4.42

Seafood

Chunk Light Tuna (per can)

$1.22

$1.23

U.S. Avg.

Alabama

Difference Diff

Tire Balance (per tire)

$70.23

$60.29

14%

Gasoline (per gallon)

$2.9

$3.66

26%

U.S. Avg.

Alabama

Difference Diff

Doctor Visit (per visit)

$116.03

$116.41

Dentist Visit (per visit)

$145.11

$101.62

30%

Ibuprofen (per bottle)

$12.38

$11.46

Prescription Drug (per month)

$20.8

$22.4

Optometrist Visit (per visit)

$95.27

$114.63

20%

U.S. Avg.

Alabama

Difference Diff

Women’s Slacks

$35.43

$37.5

Boys’ Jeans

$29.47

$31.24

Men’s Shirt

$39.36

$42.53

Wine (per bottle)

$7.51

$11.36

51%

Beer (per 6-pack)

$11.17

$10.77

Veterinary Services (per visit)

$65.33

$64.77

Tennis Balls (per pack)

$3.59

$3.88

Yoga (per class)

$12

$18.8

57%

Movie (per ticket)

$11.67

$12.93

11%

Newspaper (per copy)

$19.31

$9.97

48%

Washer Repair (per service)

$109.47

$98.63

10%

Women Slacks

$34.88

$37.06

Boy Jeans

$29.51

$31.4

Man Dress Shirt

$39.05

$42.81

10%

Dry Cleaning (per item)

$13.45

$15.02

12%

Shampoo (per bottle)

$1.55

$1.52

Toothpaste (per tube)

$3.64

$3.7

Beauty Salon (per visit)

$47.5

$45.65

Haircut (per cut)

$27.08

$22.86

16%

Fried Chicken (per serving)

$4.37

$5.18

18%

Pizza (per pizza)

$11.99

$12.56

Hamburger (per serving)

$5.28

$5.45

Welcome to the Heart of Dixie—where the cost of living is 11.99% lower than the national median. Alabama blends Southern hospitality with true affordability, making it one of America’s most budget-friendly states. Major employers like Mercedes-Benz, Honda, Hyundai, and Boeing contribute to a diverse and growing economy. With its rich history, warm climate, and low living costs, Alabama offers excellent value for families, professionals, and retirees alike.

Housing is 32% lower than the national median. The average home prices in Alabama stand at $364,749.12, compared to the national median of $355,328. If you're buying a new house in Alabama, plan for an upfront down payment of 15% to 20% of the home price. Monthly mortgage payments in Alabama are typically 25% to 30% less than the national median.
Renting in Alabama is 27.8% lower than the national median of $987.15. A one-bedroom home in Alabama costs $842 per month, while a two-bedroom averages $1,018. At these prices, you'll enjoy spacious properties with amenities like parking and outdoor space, which cost significantly more in other regions of the country.
Utilities are 9% higher than the national median. Alabama's hot summers drive up electricity costs, with seven out of ten residents relying on electric power for cooling. However, competitive energy markets help moderate overall utility expenses. Internet service ranges from $191.16 monthly, based on the speed and provider.
Food prices in Alabama are 2% lower than the national median. If you're a family of four, you'll spend $1,085 to $1,300 each month on groceries. Single adults can get by on $270 to $400 monthly, thanks to Alabama's agricultural production and competitive food prices.
Transportation costs are 6.01% lower than the national median. Gas prices average $2.74 per gallon, significantly below the national median of $3.66. Monthly car insurance premiums average $165 in Alabama, which matches the typical Southeastern rates. Limited public transit outside major cities makes car ownership essential, but still affordable.
Healthcare costs in Alabama are 17.94% lower than the national median. A routine check-up costs $113, compared to $125 nationally. Dental cleanings average $95, while emergency room visits without insurance can reach $2,200. Alabama provides quality and accessible care through systems like UAB Medicine and Baptist Health.
Miscellaneous expenses are 3.41% lower than the national median. This covers entertainment, gym memberships (averaging $35 to $75 per month), and recreational activities. A family visit to the Birmingham Zoo costs around $65, while Alabama football games can range from $50 to $300 depending on the match-up.

Moving to Alabama? Get ready to spend less. But hey, the Southern charm’s free—just enjoy the lower bills and easier living! 👉 Next Step: Compare single-family homes in Alabama.

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Is Living in Alabama Expensive?

Alabama is far from expensive to live in; in fact, it ranks among the most affordable states in the US. This makes it an attractive option for middle-class families and retirees seeking a comfortable lifestyle. The overall cost of living in Alabama is 11.99% lower than the national median, with housing costs being a major factor, nearly 32% lower than the US average.

With $364,749.12, you can get a spacious home in Birmingham with modern amenities and yard space. In contrast, that same amount might only cover a small condo in Denver or a modest starter-home in Honolulu. Moreover, Alabama’s lower food prices, affordable healthcare costs, and reasonable utility bills also create financial breathing room.

Housing in Alabama

If you're buying a home in Alabama, affordability is your greatest advantage. The average house price in Alabama is $364,749.12, significantly below the national median. With mortgage rates ranging from 6.5% to 7.5%, and property taxes adding just $150 to $450 monthly, you get more value for your money. Let's break down housing costs in Alabama:

Buying a House in Alabama

For young adults or single people, one-bedroom houses in Birmingham’s Five Points South or Southside offer great urban living. These neighborhoods feature vibrant nightlife and homes that average $150,000 to $280,000. At that price, mortgage payments range from $950 to $1,800 monthly, excluding insurance and taxes. Condos in Downtown Birmingham and surrounding areas typically cost between $100,000 and $200,000.
If you're a married couple with young children (under 6), expect to pay between $200,000 and $350,000 for a three-bedroom home in Madison, Meadowbrook, Mountain Brook, or Hoover. These family-oriented communities provide access to top-rated schools such as Vestavia Hills Elementary and Mountain Brook Elementary. Both districts excel in academic achievement and extracurricular programs.
If you're a married couple with older children (ages 6 to 17), you can find multi-family homes in Alabama for $250,000 to $450,000. You can also go for houses in Madison or Auburn with large lots. These regions also provide access to excellent schools like Madison City Schools and Auburn City Schools.

Renting a House in Alabama

Renting in Alabama costs 27.8% lower than the national median. While rent in the US typically averages $987.15 per month, the average Alabama rent is $987.15, though prices vary considerably between urban centers and smaller communities. Let's examine average rental costs across the state:

If you're a young adult or single person, rent for a one-bedroom home in Downtown Birmingham or Lakeview costs $950 to $1,300 monthly. Downtown Birmingham attracts residents with venues like Regions Field and The Alabama Theatre, while Lakeview offers trendy spots like Carrigan's Public House and easy access to Railroad Park. More affordable options exist in neighborhoods like Avondale or Glen Iris, ranging from $700 to $950 monthly. These areas provide convenient access to UAB and employment centers downtown.
If you're a married couple with young children (under 6), expect to pay between $1,200 and $1,800 monthly for a three-bedroom home in Madison, Meadowbrook, Homewood, Hoover, Mountain Brook, or other family-friendly neighborhoods. These areas offer amenities like parks, quality schools, and community centers.
For families with older children (ages 6 to 17), renting a four-bedroom home in Auburn or Madison costs between $1,500 and $2,500 monthly. Rentals near top-rated schools tend toward the higher end of this range.
If you're downsizing, expect to spend $900 to $1,400 monthly renting one- or two-bedroom condos in Birmingham, Huntsville, or Mobile. These areas come with low-maintenance living and proximity to quality healthcare facilities like UAB Hospital.
International students should budget about $1,600 monthly for a three-bedroom home in Alabama. Sharing apartments in neighborhoods near Auburn University or University of Alabama can help you save 30% to 40% on rent.

Utilities in Alabama

Food and Groceries in Alabama

Transportation in Alabama

Healthcare in Alabama

Due to the state's competitive medical market and lower operational costs, healthcare costs in Alabama are 17.94% lower than the national median. Here's a breakdown:

Doctor Visit — $116.41+ per visit: Routine care in Alabama averages $116.41 per visit. Common appointments (like annual physicals, blood pressure monitoring, or prescription consultations) generally fall within this range. Specialized visits, such as cardiology or orthopedic consultations, may cost anywhere between $155 and $275, depending on your provider.
Dentist Visit — $101.62+ per visit: A basic dental cleaning costs around $101.62, while cavity fillings cost $135 to $195. Compared to other Southern states like Georgia and Tennessee, where cleanings typically cost between $105 and $115, Alabama remains more affordable. Even procedures like X-rays and fluoride treatments tend to be 10% to 15% below the regional average.
Optometrist Visit — $114.63+ per visit: Routine eye exams in Alabama cost less than the national median. This includes vision checks and prescription updates, though specialized services can add $55 to $145 more.
Prescription Drugs — $22.40+ per package: For chronic conditions like diabetes, a month's supply of Metformin costs $12 to $25 without insurance. Hypertension medication with Lisinopril costs $10 to $20 monthly. For short-term needs, common antibiotics like Amoxicillin cost $15 to $28.
Over-the-Counter Meds — $9+ per package: Everyday essentials like ibuprofen, allergy relief, and cold medications like DayQuil average $11.46 per package. Whether you're dealing with summer heat exhaustion or down with the flu, a well-stocked medicine cabinet is a practical and cost-effective solution.

Healthcare in Alabama costs less than in most neighboring states, and you gain access to world-class institutions like UAB Medicine, Baptist Health, and Huntsville Hospital. The state's warm climate reduces cold-weather health expenses, while its overall affordability attracts quality medical professionals seeking reasonable practice costs.
You should still get health insurance, as the average cost of a doctor's visit in Alabama is around $113*. The monthly cost of a health insurance plan in the state typically ranges between $315* and $585*.

*Disclaimer: These figures are averages and can vary based on individual circumstances and specific insurance providers. It's recommended to compare plans and consult with insurance professionals to find the best coverage for your needs.

Miscellaneous Costs in Alabama

What Salary Do You Need to Live in Alabama?

The average salary in Alabama is 11.99% lower. Fortunately, you can maintain a comfortable lifestyle on anywhere from $35,000 to $55,000 per year, depending on your family size, lifestyle, and location.

Homeowners spend $91,151.00 per year: Mortgage payments, property taxes, and home maintenance are comparatively low here, especially in cities like Huntsville and Montgomery.

Renters spend $47,608.00 per year: With average rents well below national levels, tenants can comfortably manage monthly expenses, including utilities and basic transportation.

Families with kids spend $95,136.00 per year: Expenses rise with childcare, larger housing needs, healthcare, and groceries, but Alabama’s overall cost efficiency keeps family life within reach.

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What is a Cost of Living Calculator?

A cost of living calculator helps you compare the expenses required to live in a different location. The calculator factors in various living expenses like housing, food, utilities, transportation, fitness, and entertainment, etc., and helps you estimate how much salary you need to live in that city. Since the cost of goods and services varies in different cities, a Alabama cost of living calculator can help you make the decision to move to this city or not.

About Cost of Living Data

The data used to determine Alabama's cost of living is sourced from the Council for Community and Economic Research (C2ER). Published since 1968, COLI data is recognized by the U.S. Census Bureau and the Bureau of Labor Statistics. This organization regularly updates its data to offer a detailed and well-researched view of living expenses in cities across the country. An independent Advisory Board reviews C2ER’s data collection methodologies and quarterly publications to ensure consistency and quality. For more information, visit www.coli.org. Data published as of Oct 2025.

Frequently Asked Questions

How much is gas in Alabama?

The cost of gas in Alabama averages $3.66 per gallon, significantly below the national median. Prices may fluctuate during hurricane season or around high-traffic periods, like Alabama football games or NASCAR events at Talladega. Traffic on I-65 and I-20 can mean longer commutes and more frequent trips to the pump.

Is Alabama a good place to live?

Yes, Alabama is an excellent place to live if you value affordability, warm weather, and Southern hospitality. It has well-connected airports like Birmingham-Shuttlesworth International, plus excellent healthcare at UAB Medicine and Baptist Health. Additionally, areas like Vestavia Hills and Madison are known for their school districts.

What is the living cost in Alabama?

The average cost of living in Alabama is 11.99% lower than the national median. Birmingham and Huntsville are on the higher end for the state, while Anniston, Gadsden, and Florence rank among the most affordable places to live in Alabama.

What is the average rent in Alabama?

A one-bedroom apartment in Alabama typically rents for $987.15 to $1,400 per month. However, sought-after neighborhoods like Five Points South and Mountain Brook charge higher rents due to their walkable entertainment districts, quality restaurants, and proximity to downtown Birmingham.

How much is a two-bedroom apartment in Alabama?

A two-bedroom apartment in Alabama costs between $1,500 and $1,900 per month. Expect higher rents in desirable neighborhoods, or for luxury homes in Orange Beach, Vestavia Hills, Gulf Shores, and other premium communities.

What is the average price of utilities in Alabama?

Utilities in Alabama range from $400 to $650 per month. This includes electricity, natural gas, water, sewer, and trash. Air conditioning expenses during summer can significantly increase your utility bills, particularly in older homes.

How much is childcare in Alabama?

If you're moving to Alabama, expect childcare costs to range between $600 to $1,200 per month for toddlers. However, prices vary by area. Daycare centers in Mountain Brook and Vestavia Hills tend to cost more than in-home care options in cities like Birmingham and Homewood.

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Cost of Living in
Alabama

Enter the city you're moving from

A Breakdown of the Cost of Living in Alabama

Find your
dream home in Alabama

Is Living in Alabama Expensive?

Housing in Alabama

Buying a House in Alabama

Renting a House in Alabama

Utilities in Alabama

Food and Groceries in Alabama

Transportation in Alabama

Healthcare in Alabama

Miscellaneous Costs in Alabama

What Salary Do You Need to Live in Alabama?

Is Alabama Too Expensive? Find Homes in Alabama as Per Your Budget

Discover your place in Alabama

What is a Cost of Living Calculator?

About Cost of Living Data

Frequently Asked Questions

How much is gas in Alabama?

Is Alabama a good place to live?

What is the living cost in Alabama?

What is the average rent in Alabama?

How much is a two-bedroom apartment in Alabama?

What is the average price of utilities in Alabama?

How much is childcare in Alabama?

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Cost of Living in Alabama

Enter the city you're moving from

A Breakdown of the Cost of Living in Alabama

Find your dream home in Alabama

Is Living in Alabama Expensive?

Housing in Alabama

Buying a House in Alabama

Renting a House in Alabama

Utilities in Alabama

Food and Groceries in Alabama

Transportation in Alabama

Healthcare in Alabama

Miscellaneous Costs in Alabama

What Salary Do You Need to Live in Alabama?

Is Alabama Too Expensive? Find Homes in Alabama as Per Your Budget

Discover your place in Alabama

What is a Cost of Living Calculator?

About Cost of Living Data

Frequently Asked Questions

How much is gas in Alabama?

Is Alabama a good place to live?

What is the living cost in Alabama?

What is the average rent in Alabama?

How much is a two-bedroom apartment in Alabama?

What is the average price of utilities in Alabama?

How much is childcare in Alabama?

Calculate Cost of Living Across US Cities

Homes For Sale Near Me

Homes For Sale in Popular US Cities

Homes For Sale in Popular US Neighbourhoods

Homes For Sale FAQs

Find Homes For Sale Near You

Homes For Sale by Type and Style

Cost of Living in
Alabama

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