Alabama cost of living
South region · BEA Regional Price Parities 2022 · Census ACS 2023
Alabama has an overall price level of 87.8 on the BEA Regional Price Parity scale (US average = 100), or -12.2% versus the country — among the most affordable price levels in the country. That makes it the #49 of 51 state by price (1 = most expensive). Its median household income is $62,212 (ranked #45) and median gross rent is $1,077/month. To match a typical US $60,000 standard of living here you'd need roughly $52,680.
Source: BEA Regional Price Parities (RPP), all items. Data as of June 2026.
Alabama cost-of-living indicators
| Indicator | Alabama |
|---|---|
| Price level (BEA RPP, all items, US = 100) | 87.8 (-12.2%) |
| Price-level rank (1 = most expensive of 51) | #49 |
| Median household income (ACS 2023) | $62,212 |
| Income rank (1 = highest of 51) | #45 |
| Median gross rent (ACS 2023, per month) | $1,077 |
Source: BEA Regional Price Parities (RPP), all items; U.S. Census Bureau, ACS median household income; U.S. Census Bureau, ACS median gross rent (Table B25064). Data as of June 2026.
Sources: BEA RPP 2022 · Census ACS income 2023 · Census ACS rent 2023. Estimate — verify with the primary source.
What the price level means
The Regional Price Parity is a single index of how expensive everything — housing, goods, services and rents — is in Alabama relative to the nation. At 87.8, prices here are about 12.2% lower than the US average. Housing typically drives most of the gap between states — Alabama's median rent of $1,077/month is one signal of that. RPP is a 2022 estimate and updates roughly once a year; treat it as a guide to relative prices, not a precise current figure.
Salary needed to keep your standard of living in Alabama
Because Alabama's price level is 87.8 (US = 100), a salary worth $1,000 of buying power at the US average is worth about $878 of spending here. A few worked examples (price level only — these ignore taxes and your actual job market):
| US-average salary | Equivalent budget in Alabama |
|---|---|
| $50,000 | $43,900 |
| $75,000 | $65,850 |
| $100,000 | $87,800 |
| $150,000 | $131,700 |
Moving from a specific state? The cost-of-living calculator converts your own salary between any two states. For example, $80,000 in South Dakota is worth about $79,818 in Alabama.
States with a similar cost of living to Alabama
The five states closest to Alabama on the price-level scale:
| State | RPP (US=100) | vs US | Median income | Median rent |
|---|---|---|---|---|
| Alabama (this state) | 87.8 | -12.2% | $62,212 | $1,077 |
| South Dakota | 88.0 | -12.0% | $71,810 | $999 |
| Mississippi | 87.3 | -12.7% | $54,203 | $990 |
| Iowa | 88.4 | -11.6% | $71,433 | $981 |
| North Dakota | 88.7 | -11.3% | $76,525 | $980 |
| Oklahoma | 88.8 | -11.2% | $62,138 | $1,044 |
Frequently asked questions
Is Alabama an expensive state to live in?
Alabama's overall price level is 87.8 on the BEA Regional Price Parity scale where the US average is 100, which is -12.2% versus the country as a whole — among the most affordable price levels in the country. It ranks #49 of 51 states (and DC) from most to least expensive. This is an estimate of overall prices; verify with the BEA before relying on it.
What salary do you need to live in Alabama?
As a rule of thumb, to match a US-average $60,000 standard of living you would need about $52,680 in Alabama, because its price level is 87.8 (US = 100). The state's own median household income is $62,212 (ACS 2023). Use the cost-of-living calculator to convert your specific salary between states. This is an estimate, not advice.
What is the median rent in Alabama?
The median gross rent in Alabama is $1,077 per month (US Census Bureau ACS 2023, Table B25064). Gross rent includes utilities. Actual rents vary widely by city and unit size.
How does Alabama's cost of living compare to other states?
Alabama is closest in overall price level to South Dakota, Mississippi, Iowa. The most similar-cost states make natural comparisons if you are weighing a move. See the side-by-side comparison and rankings pages for details.
Keep exploring
Sources & accuracy
Price level: BEA Regional Price Parities (RPP), all items (2022). Income and rent: U.S. Census Bureau ACS (2023). All public domain. The "salary needed" numbers are computed from the RPP ratio (see methodology) and are estimates of price level only — they do not account for state income tax, your specific salary market or personal spending. Verify with the primary sources before making a financial decision.
Last updated: 2026-06-18