Cost of Living in Alabama

The cost of living in Alabama is 13% lower than the national average
Cost of Living in Alabama Compared to National Average
Housing (Buy and Rent) 38% lower
Utilities (Monthly) 9% higher
Food 7% lower
Healthcare 16% lower
Transportation 8% higher
Goods & Services 4% lower
Summary

The cost of living in Alabama is 13% lower than the national average. Housing is 38% lower than the national average, while utilities are 9% higher. When it comes to basic necessities such as food and clothing, groceries are around 7% lower than in the rest of the country, while clothing costs 4% lower.

Healthcare services such as doctor check-ups and dentistry cost 16% lower in Alabama compared to the national average. At the same time, non-necessary expenses such as entertainment and grooming services are 4% lower.

The Cost of Living in Alabama Largest Cities Compared to the National Average

This is how much pricier or cheaper it is to live in Alabama’s 12 largest cities compared to the national average.
The cost of living in Alabama varies depending on the city you live in. The priciest city in Alabama is Tuscaloosa, where the cost of living is 15% higher compared to the state average and 1% lower than in the rest of the U.S. The cheapest major city in Alabama is Mobile, with a cost of living 3% lower below the state average and 16% lower than the national average.
City, State Compared to State Average Compared to National Average
Tuscaloosa, AL 15% higher 1% lower
Athens, AL 9% higher 6% lower
Madison, AL 9% higher 6% lower
Birmingham, AL 6% higher 8% lower
Auburn, AL 6% higher 8% lower
Dothan, AL 6% higher 8% lower
Huntsville, AL 6% higher 8% lower
Scottsboro, AL 1% higher 12% lower
Oneonta, AL 1% higher 12% lower
Hartselle, AL 1% higher 12% lower
Montgomery, AL 1% higher 12% lower
Decatur, AL 1% lower 14% lower
Albertville, AL 2% lower 15% lower
Moulton, AL 2% lower 15% lower
Mobile, AL 3% lower 16% lower
What is a cost of living calculator?

The cost of living calculator tells you how much money you need to maintain your current standard of living in a different city. The cost of living comparison is based on your income and the price of basic necessities such as housing, transportation or food in the two cities you selected. Use the calculator to find out what income you will need in a new city and how much more or less you’ll need to budget for basic expenses.

Where does the data come from?

Consumer goods, services and home prices are sourced from The Cost of Living Index published by the Council for Community and Economic Research (C2ER).
The data on this page is updated bi-annually and it was last published in September 2025.

Average rent data is our in-house proprietary data from Yardi Matrix, where available. For the remaining locations, C2ER rent data was used. Yardi Matrix is a business development and asset management tool for brokers, sponsors, banks and equity sources underwriting investments in the multifamily, office, industrial and self-storage sectors, a division of Yardi Systems, Inc.

Household income data is sourced from the U.S. Census Bureau’s most recent estimates.

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