Alabama by the numbers
A decision-oriented profile: what it costs to live here, what the job market looks like, and how it stacks up against where you are now. Every figure links to its official source.
The bottom line on Alabama
The cost-of-living picture
Overall prices in Alabama run at 88.8 on the BEA index, where 100 is the US average — among the most affordable states in the country. That puts it 11% below the national level, the 7th-cheapest state of 51. The single biggest factor is housing rents, which sits at 61.8 — 38% below the national norm.
Housing
The typical renter pays $1,007 a month — 29% below the national median of $1,413, the 43rd-highest rent in the country. Buying is a bigger gap: the median home is worth $209,900, 37% below the national median. 70.2% of homes are owner-occupied, making it an ownership-heavy state. Renters here spend a median 29.5% of their income on rent, within the range usually considered affordable.
Do paychecks keep up with prices?
Median household income is $63,999, the 46th-highest of 51 states. But income only matters relative to prices: adjusted for local costs, that is worth $72,071 in national-average terms. Its rank barely moves after adjusting for costs, so pay and prices here are broadly in step.
The tax trade-off
Income is taxed through graduated brackets, topping out at 5.00%. Combined sales tax averages 9.46%. The two roughly offset, leaving a middle-of-the-pack tax profile. (Tax figures are hand-verified from the Tax Foundation and dated on the page below.)
The job market
Unemployment stands at 3.0% (May 2026), 29% below the national 4.2%. That is a tighter labor market than the country as a whole. It is also the one figure here that refreshes monthly, rather than annually.
Every figure above is drawn from the sourced data on this page — no estimates, no filler.
What it costs to live here
Price level by component, 100 = US average. Higher means more expensive than the national average.
| Component | Alabama | vs US avg |
|---|---|---|
| All items | 88.8 | −11.2% |
| Housing rents | 61.8 | −38.2% |
| Goods | 96.4 | −3.6% |
| Utilities | 84.6 | −15.4% |
| Other services | 96.7 | −3.3% |
BEA Regional Price Parities · SARPP · 2024 · rel. February 2026 · Official API
Housing & income (ACS)
| Median gross rent | $1,007/mo |
|---|---|
| Median home value | $209,900 |
| Median household income | $63,999/yr |
| Homeownership rate | 70.2% |
| Median rent as % of income | 29.5% |
| Median owner costs as % of income | 14.8% |
US Census ACS 5-Year Estimates · ACS5 · 2024 · rel. December 2025 · Official API
The job market
The seasonally-adjusted unemployment rate in Alabama is 3.0% as of May 2026 (preliminary). This is the one figure here that updates monthly.
BLS Local Area Unemployment Statistics · LAUS · May 2026 · rel. May 2026 · Official API
How Alabama has changed since 2005
Home prices (FHFA index)
Home prices in Alabama are up 99% since 2005 (FHFA index). That's roughly in line with the 97% rise nationally over the same period.
Data table
| Year | Alabama | US |
|---|---|---|
| 2005 | 272 | 363 |
| 2006 | 292 | 379 |
| 2007 | 301 | 375 |
| 2008 | 301 | 348 |
| 2009 | 292 | 330 |
| 2010 | 285 | 324 |
| 2011 | 278 | 313 |
| 2012 | 276 | 315 |
| 2013 | 272 | 328 |
| 2014 | 279 | 345 |
| 2015 | 286 | 362 |
| 2016 | 294 | 382 |
| 2017 | 304 | 403 |
| 2018 | 315 | 422 |
| 2019 | 334 | 444 |
| 2020 | 357 | 471 |
| 2021 | 419 | 556 |
| 2022 | 468 | 617 |
| 2023 | 489 | 649 |
| 2024 | 520 | 685 |
| 2025 | 539 | 708 |
| 2026 | 541 | 713 |
Unemployment rate
State unemployment peaked at 10.4% in 2010 and stands at 2.8% today — a long recovery from that high.
Data table
| Year | Alabama | US |
|---|---|---|
| 2005 | 4.5% | 5.1% |
| 2006 | 4% | 4.6% |
| 2007 | 4.1% | 4.6% |
| 2008 | 5.9% | 5.8% |
| 2009 | 9.7% | 9.3% |
| 2010 | 10.4% | 9.6% |
| 2011 | 9.6% | 8.9% |
| 2012 | 8.2% | 8.1% |
| 2013 | 7.4% | 7.4% |
| 2014 | 6.8% | 6.2% |
| 2015 | 6.1% | 5.3% |
| 2016 | 5.8% | 4.9% |
| 2017 | 4.5% | 4.4% |
| 2018 | 3.9% | 3.9% |
| 2019 | 3.2% | 3.7% |
| 2020 | 6.4% | 8.1% |
| 2021 | 3.4% | 5.4% |
| 2022 | 2.5% | 3.7% |
| 2023 | 2.5% | 3.6% |
| 2024 | 3% | 4% |
| 2025 | 2.9% | 4.3% |
| 2026 | 2.8% | 4.3% |
FRED (FHFA House Price Index & state unemployment) · FRED · through 2026 · rel. continuously updated · Official API
What you'd pay in tax
| Individual income tax | 5.00% top rate (graduated) |
|---|---|
| Sales tax (state) | 4.00% |
| Sales tax (combined avg) | 9.46% |
Tax Foundation — 2026 State Individual Income Tax Rates and Brackets · Income · 2026 · rel. tax year 2026 · Manually maintained · verified 2026-07-20
Tax Foundation — State and Local Sales Tax Rates, 2026 · Sales · 2026 · rel. tax year 2026 · Manually maintained · verified 2026-07-20
How it compares to where you are now
See how far your income would go here versus your current state — adjusted for what things actually cost.
Compare your income in Alabama →Where Alabama ranks
Sources for every figure on this page
BEA Regional Price Parities ·
SARPP· 2024 · rel. February 2026 · Official APIBLS Local Area Unemployment Statistics ·
LAUS· May 2026 · rel. May 2026 · Official APIUS Census ACS 5-Year Estimates ·
ACS5· 2024 · rel. December 2025 · Official APITax Foundation — 2026 State Individual Income Tax Rates and Brackets ·
Income· 2026 · rel. tax year 2026 · Manually maintained · verified 2026-07-20Tax Foundation — State and Local Sales Tax Rates, 2026 ·
Sales· 2026 · rel. tax year 2026 · Manually maintained · verified 2026-07-20
Occupation wages and a full tax profile for Alabama are being added. See the methodology →