What Is The Cost Of Living In Alabama? 

Today we will tell you all about the cost of living in Alabama. Before knowing it, you should know about where Alabama is located. So, Alabama is a state located in the United States, in the Southeastern region. The state of Alabama is popularly known for its Southern hospitality, its history of civil rights struggles, and as the birthplace of the Civil Rights Movement. Besides this, it is also known as a large producer of two commodities in the country and is an important home to space discovery. Let’s have a look at the cost of living in Alabama

What Is The Cost Of Living In Alabama? 

The cost of living in Alabama is 84.1 as compared to the national average index of 100. On the other, in terms of value, the average monthly cost of living in Alabama is around $35,859 per year. The state of Alabama is ranked 4th in the cost of living expenses and the only state that beats Alabama in terms of affordability is Mississippi. And the Mississippi cost of living is around $1752. 

Cost Of Living ForAlabamaUSA
Median Home Cost$165,200$291,700

Home Rent 

In the cost of living in Montgomery Alabama, the cost of housing has a big contribution. In Alabama, the average housing cost is $178,649, according to Zillow’s 2021 3rd quarter housing data. This is nearly 50% of the national median housing prices. Below we have tabulated the rent prices for one and two-bedroom apartments in different cities in Alabama, including the cost of living in Gulf Shores, Alabama.  

CityApprox 1 Bedroom RentApprox 2 Bedroom Rent
Gulf Shores$778$1380

Food Cost 

While calculating the cost of living in Auburn Alabama, you can’t just ignore the cost due to food. For food, you have to maintain your monthly budget. A resident in Alabama, on average pays $260.50 per month on food. Take a look at the table given below, it will give you the approx cost of dinner for 2 in different regions of the state, including the cost of living in Foley Alabama

CityApprox Dinner Cost For 2
Gulf Shores$59

Click here – What Is The Cost Of Living In Iowa? 

Travel Cost 

In Alabama, the average cost of travel is around $5,113 to $13,896 per year.  This will affect your cost of living in Alabama for month, so you should take care of your transportation budget. In the state, an adult without a child needs $5,113 per year for transportation, and a family of 4 needs $13,896 per year for transportation. 

Other Expenses 

While living a life there are so many major and minor expenses. Here are some expenses that you should know.  

Health Care 

The cost of living in Birmingham Alabama as well as the cost of living in Georgia is lower than the national average of the United States. This is because of the low cost of healthcare. The average healthcare cost is $5,904 per person per year.   

Utility Bills 

When you compare the cost of living in Alabama vs California, you find Alabama is more affordable than California. In Alabama, for utilities like water, electricity, internet, garbage collection, cooling, heating, etc, you will need to pay around the national average.  

Internet Bills 

An internet plan from an AT&T operator will cost you around $55 per month for 5 to 4,700 Mbps while a plan from Spectrum will cost you $49.99 per month for 300 to 1,000 Mbps.  


In Alabama, for a single person a monthly charge for a gym membership is around $30 and it is $50 per month for a couple. A gym membership cost for a month for a family is $75.   


There is lots of places to visit in Alabama, some are paid and some are free. Here in Alabama, you can visit the USS ALABAMA Battleship Memorial park, Barber Vintage Motorsports Museum, Gulf State Park, etc. 


The state of Alabama has a 5% marginal tax rate. Its top marginal tax rate is not too bad especially when stacked against other southern states like North Carolina and West Virginia.  

Get to know more such amazing facts by visiting Beingcost.


Is It Expensive To Live In Alabama?

The cost of living in Alabama is 12% lower than the national average. Housing is 30% lower than the national average, while utilities are 1% higher. When it comes to basic necessities such as food and clothing, groceries are around 5% lower than in the rest of the country, while clothing costs 5% lower.

Is Alabama Affordable To Live?

Alabama is known as one of the cheapest states to live in the country. The cost of living in Alabama is 1.1 times less expensive than the average in the United States

Is It Cheaper To Live In Texas Or Alabama?

Alabama is 6.1% more expensive than Texas.

Click here – What Is The Cost Of Living In Panama? 

What Is A Good Salary In Alabama?

Most salaries in Alabama range between $36,047 (25th percentile) to $64,054 (75th percentile) annually. Of course, salaries will vary depending on yor occupation, experience, and many other factors. Some of the top paying kinds of jobs in Alabama are Neuroradiologist, Anesthesiologist, and Otolaryngologist.

Which State Is Worth Living In?

Massachusetts topped 2022’s list, touting a score of 62.65 out of 100. New Jersey came in second, dropping from the top spot last year. New York, Idaho and Virginia fill out the rest of the top five states to live in, in that order.

What is Alabama Most Famous For?

  • US Space and Rocket Center.
  • Robert Trent Jones Golf Trail.
  • USS Alabama Battleship Memorial Park.
  • McWane Science Center.
  • Huntsville Botanical Garden.
  • Cheaha State Park.
  • Point Mallard Park.
  • Birmingham Civil Rights Institute.


In this article, you have learned all about Alabama’s cost of living along with its all major cities’ cost of living. And now you know, Alabama is a beautiful state to live in, coming in 3rd place in terms of cost of living with an 87.9 cost of living index score. The average home price here is $170,184 which is the second cheapest behind only Mississippi. This is all about the cost of living in Alabama.