Cost of living in Alabama

Statewide averages from BEA, with every metro area in the state compared.

Overall prices vs US average 88.8 11.2% less expensive than the US officialBEA, 2024. US = 100
Rank among 51 states and DC 45th 1st = most expensive derivedFrom BEA, 2024
Housing (rents) vs US average 61.8 48th highest housing costs officialBEA, 2024. US = 100
Income per person, adjusted for prices $52,216 48th of 51, in 2017 dollars officialBEA real personal income, 2024

What the numbers say

  • Overall prices in Alabama are 11.2% below the national average, the 45th most expensive of 51 states and DC (BEA 2024).
  • Housing is the main reason prices in Alabama differ from the national level: housing costs (rents) are 38.2% below the US average, while goods are 3.6% below average and other services 3.3% below average.
  • Utilities stand out in Alabama: household electricity, gas, water and sewer prices are 15.4% below the US average.
  • Within Alabama, metro price levels run from 83.8 in Dothan, AL to 94.7 in Daphne, AL (US = 100).
  • After adjusting for local prices, personal income per person is $52,216 in 2017 dollars, 48th of 51 (BEA 2024).
  • Relative to the US, the price level in Alabama has barely moved: 88.9 in 2008, 88.3 in 2019 and 88.8 in 2024.

Written from this page's own figures. Price levels are for an average household basket and do not include taxes. How we calculate.

Where the money goes

Statewide price levels by category. Cities and rural areas within the state can differ a lot; see the metro table below.

In Alabama, housing is the category furthest from the US average: 38.2% below

Price level by category, 2024. US average = 100.

All items
Alabama: 88.8
Goods
Alabama: 96.4
Housing (rents)
Alabama: 61.8
Utilities
Alabama: 84.6
Other services
Alabama: 96.7

Bars to the right of the line cost more than the US average; to the left, less.

Source: U.S. Bureau of Economic Analysis, Regional Price Parities by state, 2024 (US = 100).

Show the numbers
Alabama
All items88.8
Goods96.4
Housing (rents)61.8
Utilities84.6
Other services96.7

Gas prices

Regular gasoline averaged $3.78 a gallon in the Gulf Coast region in the week of October 19, 2026, $0.50 less than the US average of $4.28. EIA does not publish a separate weekly figure for Alabama, so this is the regional average. official

Work out your commute's gas cost

Source: U.S. Energy Information Administration, weekly retail gasoline prices, regular grade, including taxes.

Cheapest places to live in Alabama

By overall prices, the cheapest of the 13 metro areas BEA measures in Alabama are Dothan, AL (83.8), Florence, AL (84.8) and Gadsden, AL (85.7); the most expensive is Daphne, AL (94.7). US average = 100, BEA 2024. Rural areas are not listed separately.

Dothan, AL is the cheapest metro area in Alabama (83.8); Daphne, AL the most expensive (94.7)

Overall price level, 2024. US average = 100.

Dothan, AL
All items: 83.8
Florence, AL
All items: 84.8
Gadsden, AL
All items: 85.7
Anniston, AL
All items: 85.9
Decatur, AL
All items: 87.2
Tuscaloosa, AL
All items: 87.7
Auburn, AL
All items: 87.9
Mobile, AL
All items: 88.1
Columbus, GA Spans GA, AL
All items: 89.3
Montgomery, AL
All items: 89.7
Birmingham, AL
All items: 91.6
Huntsville, AL
All items: 93.1
Daphne, AL
All items: 94.7

Source: U.S. Bureau of Economic Analysis, Regional Price Parities by metropolitan area, 2024 (US = 100).

Show the numbers
All items
Dothan, AL83.8
Florence, AL84.8
Gadsden, AL85.7
Anniston, AL85.9
Decatur, AL87.2
Tuscaloosa, AL87.7
Auburn, AL87.9
Mobile, AL88.1
Columbus, GA89.3
Montgomery, AL89.7
Birmingham, AL91.6
Huntsville, AL93.1
Daphne, AL94.7
Metro area Overall Housing Goods Utilities Other services Typical rent
Dothan, AL 83.8 46.9 96.4 84.3 96.7 $1,211
Florence, AL 84.8 47.7 96.4 85.8 96.7 $1,073
Gadsden, AL 85.7 53.7 96.4 86.7 96.7 $1,072
Anniston, AL 85.9 54.7 96.4 87.1 96.7 $965
Decatur, AL 87.2 58.1 96.4 84.7 96.7 $1,082
Tuscaloosa, AL 87.7 58.2 96.4 84.4 96.7 $1,668
Auburn, AL 87.9 62.1 96.4 83.9 96.7 $1,595
Mobile, AL 88.1 60.1 96.4 84.2 96.7 $1,280
Columbus, GA 89.3 61.2 96.3 89.7 98.6 $1,353
Montgomery, AL 89.7 64.3 96.4 84.9 96.7 $1,383
Birmingham, AL 91.6 71.9 96.4 83.8 96.7 $1,404
Huntsville, AL 93.1 77.9 96.4 83.9 96.7 $1,387
Daphne, AL 94.7 89.2 96.4 83.3 96.7 $1,701

Price levels: BEA, 2024, US = 100. Rent: Data Provided by Zillow Group, September 2026.

How prices have changed since 2008

Price levels relative to the whole country in each year, not inflation.

Alabama has stayed below the US average since 2008

Overall price level each year, 2008–2024. US average = 100.

US average = 100

Source: U.S. Bureau of Economic Analysis, Regional Price Parities by state, 2024 (US = 100).

Show the numbers
Alabama
200888.9
200987.8
201089.8
201190.0
201290.6
201390.3
201490.2
201589.7
201690.6
201790.1
201887.4
201988.3
202087.6
202188.1
202288.0
202389.1
202488.8

Goods: 96.0 in 2008, 96.4 in 2024

US = 100

Source: U.S. Bureau of Economic Analysis, Regional Price Parities by state, 2024 (US = 100).

Show the numbers
Alabama
200896.0
200994.0
201096.4
201196.0
201295.2
201396.2
201496.3
201595.2
201696.1
201795.5
201892.5
201994.6
202094.4
202193.9
202294.7
202394.6
202496.4

Housing (rents): 59.9 in 2008, 61.8 in 2024

US = 100

Source: U.S. Bureau of Economic Analysis, Regional Price Parities by state, 2024 (US = 100).

Show the numbers
Alabama
200859.9
200960.1
201061.5
201160.9
201262.3
201361.4
201459.9
201559.2
201660.5
201761.1
201859.6
201960.3
202059.6
202160.6
202257.5
202361.6
202461.8

Utilities: 90.9 in 2008, 84.6 in 2024

US = 100

Source: U.S. Bureau of Economic Analysis, Regional Price Parities by state, 2024 (US = 100).

Show the numbers
Alabama
200890.9
200991.0
201093.0
201193.1
201295.1
201393.5
201494.3
201594.7
201694.7
201793.7
201888.0
201986.4
202084.8
202186.6
202288.0
202389.9
202484.6

Other services: 97.8 in 2008, 96.7 in 2024

US = 100

Source: U.S. Bureau of Economic Analysis, Regional Price Parities by state, 2024 (US = 100).

Show the numbers
Alabama
200897.8
200996.7
201098.4
201199.8
2012100.8
201399.9
201499.9
2015100.0
2016100.6
201799.0
201895.9
201996.9
202096.5
202196.1
202297.1
202398.2
202496.7

What incomes buy here

BEA divides personal income by local prices, so a dollar in a cheap state counts for more. This is income per resident (wages, benefits, investment income), not household or take-home pay.

After adjusting for prices, income per person in Alabama is $52,216, 48th of 51

Real personal income per person, constant 2017 dollars (adjusted for local price levels and inflation).

  • Alabama
  • United States

Source: U.S. Bureau of Economic Analysis, real personal income by state (SARPI), 2008–2024.

Show the numbers
AlabamaUnited States
2008$42,219$45,816
2009$41,966$44,204
2010$41,709$44,808
2011$41,819$45,957
2012$41,592$46,796
2013$41,325$46,358
2014$41,984$47,661
2015$43,809$49,396
2016$43,554$49,828
2017$44,481$51,006
2018$46,440$52,242
2019$47,130$53,683
2020$50,186$56,514
2021$52,875$59,365
2022$50,649$57,104
2023$50,902$58,088
2024$52,216$59,195

Compare Alabama with other states

States with similar prices

All states ranked · States ranked by what income buys

Compare two cities

Sources and limits

  • Price levels and real income: U.S. Bureau of Economic Analysis (BEA), Regional Price Parities and real personal income by state, 2008–2024. Last updated February 19, 2026: new statistics for 2024; revised statistics for 2008-2023. Downloaded 2026-10-21.
  • Metro price levels: BEA Regional Price Parities by metro area. Typical rent: Data Provided by Zillow Group.
  • State figures average cities and rural areas. Taxes are not included. BEA figures lag by about 18 months.

Methodology · Data sources · Report an error