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 identifies its source and vintage.

Price level (all items) 88.8 −11.2% vs US avg · rank 45/51 BEA RPP SARPP ’24
Unemployment 3.4% July 2026 (prelim.) BLS LAUS LAUS ’26
Median rent $1,007/mo Census ACS ACS5 ’24
Median home value $209,900 Census ACS ACS5 ’24

Compare Alabama with where you live now

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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 component furthest from the national level is housing rents, 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. The statewide median gross-rent-to-income ratio is 29.5%, below the commonly used 30% cost-burden threshold. Owner-occupied homes report median real estate taxes of $788 a year; that figure is context for owners, not a household-specific tax quote.

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%. These headline rates do not by themselves measure a household's total tax burden. (Tax figures are hand-verified from the Tax Foundation and dated on the page below.)

The job market

Unemployment stands at 3.4% (July 2026), 0.7 percentage points below the national rate of 4.1%. 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 published data on this page. Missing values are never modeled or filled in.

What it costs to live here

Price level by component, 100 = US average. Higher means more expensive than the national average.

Regional price parity by component for Alabama.
ComponentAlabamavs 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 19, 2026 · Official data

Housing & income (ACS)

Median gross rent$1,007/mo ±$8
Median home value$209,900 ±$1,076
Median household income$63,999/yr ±$399
Homeownership rate70.2%
Median rent as % of income29.5% ±0.3%
Median owner costs as % of income14.8% ±0.1%
Median real estate taxes paid$788/yr ±$6
Median taxes ÷ median home value0.38% US 0.94%
Median home value ÷ median household income3.3× US 4.1×

The ± values are Census 90% margins of error. Property-tax figures cover owner-occupied homes and are not estimates for a particular property. The two ratio rows divide one statewide median by another: a quick screen of the tax and price burden, not a rate any household pays.

US Census ACS 5-Year Estimates · ACS5 · 2024 · rel. December 2025 · Official data

Everyday costs in dollars

The price index above is relative. These are the actual dollar figures behind it: rent by home size, energy bills, and what residents spend per person each year.

Rent by number of bedrooms

Median gross rent by number of bedrooms in Alabama and the US.
Home sizeAlabamaUSvs US
Studio $789/mo ±$30 $1,248/mo −36.8%
1 bedroom $850/mo ±$18 $1,235/mo −31.2%
2 bedrooms $960/mo ±$10 $1,407/mo −31.8%
3 bedrooms $1,127/mo ±$12 $1,584/mo −28.9%
4 bedrooms $1,318/mo ±$36 $1,957/mo −32.7%

US Census ACS 5-Year Estimates (summary file) · ACS5 · 2020–2024 · rel. December 2025 · Official data

Home energy bills

Average electric bill$174/moUS $142 · +22.0%
Electricity price15.2¢/kWhUS 16.5¢
Average household use1,143 kWh/moUS 863 kWh
Residential natural gas$18.63/McfUS $14.50

Residential customers, 2024. The bill reflects both the price and how much electricity homes use, which depends heavily on climate and heating fuel. In Alabama, 67% of homes heat mainly with electricity, 26% with piped gas. Why bills differ by state →

EIA residential electricity (Table 5A) and natural gas prices · EIA-861 · 2024 · rel. October 7, 2025 · Official data

What residents spend per person

Personal consumption expenditures per person in Alabama, 2025.
CategoryAlabamaUSvs USSince 2019 (current dollars)
All consumer spending $48,725 $61,062 −20.2% +37.7%
Housing and utilities $8,697 $11,159 −22.1% +41.7%
Health care services $8,408 $10,442 −19.5% +34.2%
Groceries $4,019 $4,459 −9.9% +38.2%
Restaurants and hotels $3,486 $4,377 −20.4% +43.9%
Financial services and insurance $3,379 $4,825 −30.0% +37.4%
Vehicles and parts $2,397 $2,240 +7.0% +39.9%
Gasoline and other energy goods $1,371 $1,225 +11.9% +25.2%
Transportation services $1,206 $2,058 −41.4% +49.4%
Recreation services $1,460 $2,354 −38.0% +40.0%
Clothing and footwear $1,408 $1,638 −14.0% +34.4%

Annual spending per resident, 2025, in current dollars. Higher spending can reflect higher prices, higher incomes, or both. Housing includes the rent BEA estimates owners would pay; health care covers services, not prescriptions.

BEA Personal Consumption Expenditures by State · SAPCE2 · 2025 · rel. September 30, 2026 · Official data

What salary you need in Alabama

Pre-tax salary in Alabama with the same purchasing power as an income earned at US-average prices. Calculated as income × 0.888 (the state's price level as a decimal).

Salary in Alabama equivalent to incomes at national-average prices.
Income at US-average pricesEquivalent in AlabamaDifference
$40,000 $35,520 −$4,480
$60,000 $53,280 −$6,720
$80,000 $71,040 −$8,960
$100,000 $88,800 −$11,200
$150,000 $133,200 −$16,800
$200,000 $177,600 −$22,400

Rent check: paying the median rent of $1,007/mo at no more than 30% of income takes about $40,280 a year — less than the statewide median household income of $63,999.

BEA Regional Price Parities · SARPP · 2024 · rel. February 19, 2026 · Official data

Have a specific offer? Compare it against your current state →

What common jobs pay in Alabama

Median annual wage (May 2025) for 10 occupations, and the same wage restated at national-average prices. The rank compares that cost-adjusted wage across every state with a published estimate.

Median wages by occupation in Alabama, nominal and cost-adjusted.
OccupationMedian wagevs US medianCost-adjustedReal-pay rank
Registered Nurses $77,080 −21.0% $86,802 49 of 51
Software Developers $122,540 −9.9% $137,995 9 of 50
Elementary School Teachers $61,380 −4.0% $69,122 22 of 51
Electricians $55,690 −11.9% $62,714 40 of 51
Heavy & Tractor-Trailer Truck Drivers $52,120 −11.1% $58,694 33 of 51
Accountants and Auditors $74,880 −10.5% $84,324 24 of 51
Police & Sheriff’s Patrol Officers $51,270 −32.7% $57,736 48 of 51
Pharmacists $134,630 −4.5% $151,610 17 of 51
Dental Hygienists $61,160 −37.7% $68,874 50 of 50
Welders, Cutters, Solderers & Brazers $48,490 −9.8% $54,606 37 of 51

Green means the Alabama median pays more than the national median for that job. Medians cover all industries and experience levels.

BLS Occupational Employment and Wage Statistics · OEWS · May 2025 · rel. May 15, 2026 · Official data

BEA Regional Price Parities · SARPP · 2024 · rel. February 19, 2026 · Official data

The job market

The seasonally-adjusted unemployment rate in Alabama is 3.4% as of July 2026 (preliminary). This is the one figure here that updates monthly.

Minimum wage: $7.25 an hour (the federal minimum applies), about $15,080 for a full-time year of 2,080 hours. No state minimum wage law; FLSA-covered employers must pay the federal $7.25. Can it pay the rent? →

BLS Local Area Unemployment Statistics · LAUS · July 2026 · rel. Aug. 21, 2026 · Official data

U.S. Department of Labor, Wage and Hour Division — State Minimum Wage Laws / Consolidated State Minimum Wage Update Table · Min. wage · 2026 · rel. DOL table effective 2026-07-01 · Manually maintained · verified 2026-10-24

Who lives in Alabama, and who is moving

Alabama had 5,193,088 residents on July 1, 2025, up 3.2% since July 1, 2020 (+160,126 people) against 3.1% for the US. That is the 20th-fastest growth of 51.

Moved in from other states, net+131,5982020–2025
Moved in from abroad, net+53,8682020–2025
Births minus deaths−26,3412020–2025
5.05M 5.11M 5.18M 202020232025 5.19M
Data table
YearAlabama
20205.03M
20215.05M
20225.08M
20235.12M
20245.16M
20255.19M

Net migration counts July 1, 2020 to June 30, 2025. Census attributes a small residual to no component, so the three parts may not add exactly to the change.

US Census Bureau Population Estimates · PEP · Vintage 2025 · rel. January 27, 2026 · Official data

Where movers come from and go (2024)

Moved here from

  1. Florida 16,423 ±4,099
  2. Georgia 15,194 ±2,860
  3. Tennessee 11,339 ±2,639
  4. Mississippi 7,574 ±2,264
  5. Texas 7,428 ±2,159

Left for

  1. Georgia 15,804 ±5,475
  2. Florida 11,110 ±3,108
  3. Tennessee 9,789 ±2,113
  4. Mississippi 8,215 ±3,035
  5. Texas 7,015 ±1,777

In 2024, about 119,890 people living in Alabama had lived in another state a year earlier, and about 22,494 had lived abroad. Survey estimates; ± values are 90% margins of error.

Census Bureau State-to-State Migration Flows · Migration · 2024 · rel. January 21, 2026 · Official data

Where Americans are moving, and what they trade →

Who lives here

Population characteristics for Alabama compared with the US.
MeasureAlabamaUS
Median age39.3 yrs38.9 yrs
Adults 25+ with a bachelor's degree or higher28.4%35.7%
Per capita income$36,087$44,673
Below the poverty line15.6%12.5%
No health insurance9.2%8.4%
Households with broadband87.5%91.0%
Workers who work from home8.8%15.1%
Average commute (one way)25.5 min26.4 min

US Census ACS 5-Year Estimates (summary file) · ACS5 · 2020–2024 · rel. December 2025 · Official data

How much prices vary within Alabama

BEA metro price levels for metropolitan areas that include part of Alabama. Cross-state metros may appear in more than one state.

Lowest price levelDothan, AL83.8
Highest price levelDaphne-Fairhope-Foley, AL94.7
Show all 13 metro areas
Metro areaAll itemsHousing rentsvs US
Dothan, AL83.846.9−16.2%
Florence-Muscle Shoals, AL84.847.7−15.2%
Gadsden, AL85.753.7−14.3%
Anniston-Oxford, AL85.954.7−14.1%
Decatur, AL87.258.1−12.8%
Tuscaloosa, AL87.758.2−12.3%
Auburn-Opelika, AL87.962.1−12.1%
Mobile, AL88.160.1−11.9%
Columbus, GA-AL89.361.2−10.7%
Montgomery, AL89.764.3−10.3%
Birmingham, AL91.671.9−8.4%
Huntsville, AL93.177.9−6.9%
Daphne-Fairhope-Foley, AL94.789.2−5.3%

BEA Regional Price Parities by metro area · MARPP · 2024 · rel. February 19, 2026 · Official data

Compare all US metro areas →

Housing and jobs over complete calendar years

Home prices (FHFA index) · +50.5% since 2020

Home prices in Alabama are up 98% since 2005 (FHFA index). That's roughly in line with the 95% rise nationally over the same period.

313 490 666 200520152025 537
Alabama United States
Data table
YearAlabamaUS
2005272362
2006292379
2007301375
2008301348
2009292330
2010285324
2011278313
2012276315
2013272328
2014279345
2015286362
2016294382
2017304403
2018315422
2019334443
2020357471
2021419556
2022468616
2023489648
2024519683
2025537707

Unemployment rate

The annual unemployment rate peaked at 10.4% in 2010; the latest complete-year average is 3.0% for 2024 — a long recovery from that high.

1% 5% 9% 200520152024 3%
Alabama United States
Data table
YearAlabamaUS
20054.5%5.1%
20064%4.6%
20074.1%4.6%
20085.9%5.8%
20099.7%9.3%
201010.4%9.6%
20119.6%8.9%
20128.2%8.1%
20137.4%7.4%
20146.8%6.2%
20156.1%5.3%
20165.8%4.9%
20174.5%4.4%
20183.9%3.9%
20193.2%3.7%
20206.4%8.1%
20213.4%5.4%
20222.5%3.7%
20232.5%3.6%
20243%4%

FRED (FHFA House Price Index & state unemployment) · FRED · home prices through 2025, unemployment through 2024 · rel. continuously updated · Official data

What the weather is like

Statewide averages for 1991–2020 from NOAA. They average mountains, coasts, and cities together, so a particular city can run noticeably warmer or cooler.

Average temperature63.6°F2016–2025: 64.9°F (+1.3°)
July average high90.7°FJuly mean 80.3°F
January average low34.5°FJanuary mean 45.3°F
Precipitation56.9 in/yr
Cooling vs heating need1,947 / 2,669cooling / heating degree days

NOAA NCEI Climate at a Glance (statewide) · nClimDiv · 1991–2020 average · rel. monthly · Official data

Crime in Alabama

Alabama recorded an estimated 348.3 violent crimes per 100,000 residents in 2025, 6% above the national rate of 327.6. That is the 19th-highest rate of 51. In 2020, the rate was 453.6.

Violent crime348.3per 100k · US 327.6
Property crime1,461.8per 100k · US 1,534.8
Murder8.5per 100k · US 4.1

FBI estimates for the whole state population, including areas whose police agencies did not report every month. Agencies serving 99.3% of residents submitted data in 2025. Violent crime counts murder, rape, robbery, and aggravated assault; property crime counts burglary, larceny-theft, and motor vehicle theft. Rates vary widely between cities and neighborhoods.

FBI Uniform Crime Reporting estimates (Crime Data Explorer) · CIUS · 2025 · rel. August 2026 · Official data

What you'd pay in tax

Hand-curated · last verified 2026-07-20 · tax year 2026
Individual income tax5.00% 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

Compare taxes across all states →

Alabama vs neighboring states

Every state that borders Alabama, sorted by overall price level. Real income is median household income divided by the price level.

Alabama compared with bordering states.
StatePrice levelMedian rentMedian home Real incomeUnemploymentTop income taxCompare
Florida 103.4 $1,669 $359,000 $72,116 4.6% None vs →
Georgia 96.3 $1,393 $303,300 $80,325 3.3% 5.19% vs →
Tennessee 91.9 $1,189 $286,700 $75,729 3.4% None vs →
Alabama 88.8 $1,007 $209,900 $72,071 3.4% 5.00%
Mississippi 87.0 $954 $169,800 $64,882 3.6% 4.00% vs →

Sources: BEA RPP 2024, Census ACS 2024, BLS LAUS July 2026, Tax Foundation 2026.

Where Alabama ranks

Alabama cost of living: common questions

Is Alabama expensive to live in?

Alabama's overall price level is 88.8 on the BEA Regional Price Parity index (US = 100), 11.2% below the national average. It ranks 45 of 51 from most to least expensive. Housing rents sit at 61.8, which is usually what separates expensive states from cheap ones.

What salary in Alabama equals $100,000 at national-average prices?

About $88,800. Multiply a national-average income by Alabama's price level as a decimal (0.888) to get the salary with the same pre-tax purchasing power. That figure ignores taxes and your own housing situation, which can move the answer either way.

How much income do you need to afford the median rent in Alabama?

Median gross rent in Alabama is $1,007 a month. Keeping rent at or below the common 30% guideline takes an annual income of about $40,280, compared with a statewide median household income of $63,999. Rents in the metro you are targeting may be higher or lower than the statewide median.

Does Alabama have a state income tax?

Alabama has a graduated income tax with a top rate of 5.00% for tax year 2026. The combined state-and-local sales tax averages 9.46%, of which the statewide rate is 4.00%. Owners report median real estate taxes of $788 a year.

Is Alabama's population growing?

Alabama had 5,193,088 residents on July 1, 2025, up 3.2% from July 1, 2020 (US: +3.1%). Over that period, net moves from other states added about 131,598 people and net international migration added about 53,868, according to Census population estimates.

How much is the average electric bill in Alabama?

Residential customers in Alabama paid an average of $174 a month for electricity in 2024, against $142 nationally. They used about 1,143 kWh a month at 15.18¢ per kWh (US: 863 kWh at 16.48¢), according to the EIA.

What is the minimum wage in Alabama?

Alabama follows the federal minimum of $7.25 an hour, about $15,080 for a full-time year. No state minimum wage law; FLSA-covered employers must pay the federal $7.25. Some cities and counties set higher local minimums.

What is the weather like in Alabama?

Averaged across the state for 1991–2020, Alabama's July high is 90.7°F and its January low is 34.5°F, with an annual mean of 63.6°F and 56.9 inches of precipitation a year. The 2016–2025 average was 64.9°F. Statewide averages blend regions, so check the specific city.

How does crime in Alabama compare with other states?

The FBI estimates 348.3 violent crimes per 100,000 residents in Alabama for 2025 (US: 327.6), the 19th-highest rate of 51, and 1,461.8 property crimes per 100,000 (US: 1,534.8). Crime is concentrated in particular places, so city and neighborhood figures matter more than the statewide rate.

How fast have home prices risen in Alabama?

The FHFA house price index for Alabama rose 50.5% from 2020 to 2025, compared with 50.1% for the United States. The index follows repeated sales and refinance appraisals of the same single-family homes, so it measures price change rather than the price of a typical home.

Sources for every figure on this page

Occupation wages are available for selected roles in the salary comparison. See the methodology →