Cheapest Places to Live in Alabama

Alabama, known for its rich history and southern charm, offers a mix of urban and rural living experiences. The state is home to several important cultural and historical landmarks, including the USS Alabama in Mobile, the Birmingham Civil Rights Institute, and the beautiful Gulf Shores beaches. Economically, Alabama has a diverse base with industries such as aerospace, manufacturing, and education playing significant roles. The tax structure in Alabama is relatively moderate, with low property taxes and average state income taxes. Despite recent inflation and rising food costs, Alabama remains one of the more affordable states in the country, especially in its smaller towns and rural areas.

Affordable living in Alabama can often be found in these smaller towns and rural communities, where housing costs and everyday expenses are lower. The importance of affordability in determining livability is paramount, as it allows residents to maintain a comfortable standard of living without undue financial strain. Factors contributing to the cheapest places to live in Alabama include lower housing demand in less populated areas, efficient local governance, and strong community support systems. Utilizing C2ER's cost of living data helps identify these affordable regions, ensuring that potential residents can make informed decisions about where to live in Alabama. In this diverse and historically rich state, finding affordable living options can significantly enhance one's quality of life.

Hamilton Population: 6,662 12% cheaper than Alabama average

Med. Home Value: $101,400 Med. Rent: $496 Med. Household Inc.: $38,613

With a cost of living index that is 12% cheaper than the state average, Hamilton is the cheapest place to live in Alabama. This area offers residents a remarkable blend of relatively low housing costs, budget-friendly grocery prices, affordable utilities, and economical health care services, making it an attractive destination for those seeking to stretch their dollars further. Whether you're a young professional, a growing family, or someone looking to enjoy a more relaxed pace of life, Hamilton provides an inviting and cost-effective environment to call home.

Russellville Population: 9,803 9% cheaper than Alabama average

Med. Home Value: $97,400 Med. Rent: $619 Med. Household Inc.: $44,674

The second most affordable city in Alabama is Russellville and stands out for its cost-effective lifestyle. With an overall cost of living that is 9% cheaper than the Alabama average, overall goods and services, housing, utilities, transportation and health care costs fall within a reasonable range. Median household income levels are steady and come in at , which helps to increase the purchasing power of the local residents.

Sheffield Population: 8,925 8% cheaper than Alabama average

Med. Home Value: $100,500 Med. Rent: $695 Med. Household Inc.: $36,774

Sheffield lands in the #3 spot for the cheapest cities to live in Alabama, with a cost of living that is 8% cheaper than the state average. With home prices averaging and rental rates coming in around , it helps that household income levels average about , which assists with paying the mortgage or your monthly rent. Its robust public school system and accessible health care further enhance its appeal, making it a great place to settle down. The strong community spirit and ample recreational opportunities add to its charm.

Selma Population: 17,762 7% cheaper than Alabama average

Med. Home Value: $90,500 Med. Rent: $645 Med. Household Inc.: $26,581

The cost of everyday grocery items, goods & services and of course housing, can have a significant impact on the overall cost of living in any area. Selma offers a picturesque and affordable living environment, with a cost of living that is 7% cheaper than the state average. Everyday items like ground beef , eggs , coffee and pizza are all fairly reasonable compared to most other cities, which helps reduce those grocery bills. Home prices are also fairly affordable (compared to the state average), coming in at around .

Prichard Population: 21,618 7% cheaper than Alabama average

Med. Home Value: $66,100 Med. Rent: $805 Med. Household Inc.: $30,464

For those wanting to live well on a budget, Prichard is ideal, with a cost of living that is 7% cheaper than the state average. Reasonable housing prices (compared to the Alabama average) of and rental prices of are paired with economical goods and services and a range of free or low-cost recreational activities. The city's proactive economic development initiatives also ensure a steady stream of job opportunities, making it a smart choice for those prioritizing financial ease.

Gadsden Population: 35,224 7% cheaper than Alabama average

Med. Home Value: $80,400 Med. Rent: $645 Med. Household Inc.: $34,062

Gadsden comes in at #6 on our list of the cheapest cities in Alabama and is a haven for those seeking affordability without sacrificing convenience. The city is known for its discount shopping centers and budget-friendly dining options and has a cost of living that is 7% cheaper than Alabama. The city's local markets provide fresh produce and other groceries at reduced prices, while parks and community centers offer free entertainment and leisure. This city is perfect for enjoying a high quality of life at a low cost.

Talladega Population: 15,405 7% cheaper than Alabama average

Med. Home Value: $87,600 Med. Rent: $565 Med. Household Inc.: $30,088

With its cost-effective lifestyle, Talladega is an attractive destination for those looking to live affordably. The city boasts suitable housing costs, affordable healthcare, and a variety of budget-friendly dining options. The community is welcoming and vibrant, providing residents with a rich social life at a fraction of the cost. Median income levels come in at , which provides financial stability, purchasing power and increases the quality of life in the city.

Brewton Population: 5,210 7% cheaper than Alabama average

Med. Home Value: $105,600 Med. Rent: $521 Med. Household Inc.: $41,444

A lower cost of living allows individuals to manage their expenses more effectively, reducing the risk of financial stress and debt. When essential costs such as housing, food, transportation, and healthcare are more affordable, people can achieve greater financial stability and resilience. Brewton fits that mold and has a cost of living that is 7% cheaper than Alabama.

Attalla Population: 5,885 7% cheaper than Alabama average

Med. Home Value: $92,300 Med. Rent: $538 Med. Household Inc.: $42,744

Lower living costs can lead to a higher quality of life by making it easier for people to afford comfortable housing, nutritious food, and access to healthcare. It can also provide opportunities for better education, recreational activities, and community engagement, contributing to overall well-being. Attalla is one of the most affordable cities in Alabama, and has a cost of living that is 7% cheaper than the state average.

Monroeville Population: 5,812 6% cheaper than Alabama average

Med. Home Value: $107,600 Med. Rent: $540 Med. Household Inc.: $29,543

With a cost of living that is 6% cheaper than Alabama, Monroeville comes in at #10 on our list of the cheapest places to live in Alabama. Financial stress is a significant factor affecting mental and physical health. By lowering the cost of living, individuals can experience reduced anxiety related to meeting monthly expenses, thereby improving overall health and well-being. The ability to afford basic necessities without constant worry contributes to a more balanced and fulfilling life.

Full list of the cheapest places in Alabama

Rank	Location	Population	COL Index	Med. Home Value	Med. Household Inc.
1	Hamilton	6,662	78	$101,400	$38,613
2	Russellville	9,803	81	$97,400	$44,674
3	Sheffield	8,925	82	$100,500	$36,774
4	Selma	17,762	82	$90,500	$26,581
5	Prichard	21,618	82	$66,100	$30,464
6	Gadsden	35,224	82	$80,400	$34,062
7	Talladega	15,405	82	$87,600	$30,088
8	Brewton	5,210	82	$105,600	$41,444
9	Attalla	5,885	83	$92,300	$42,744
10	Monroeville	5,812	83	$107,600	$29,543
11	Atmore	9,269	83	$96,100	$25,211
12	Chickasaw	5,757	83	$73,900	$32,332
13	Tuscumbia	8,445	83	$114,300	$41,131
14	Tuskegee	8,443	84	$81,300	$28,629
15	Lanett	6,220	84	$88,700	$34,785
16	Opp	6,405	84	$93,400	$34,548
17	Boaz	9,587	84	$108,000	$41,556
18	Fort Payne	14,063	85	$130,400	$42,200
19	Greenville	7,478	85	$116,300	$41,012
20	Saks	10,175	85	$91,100	$46,250
21	Daleville	5,125	85	$97,600	$35,255
22	Tarrant	6,216	86	$84,600	$34,032
23	Florence	40,652	86	$142,000	$39,735
24	Clanton	8,719	86	$125,900	$43,675
25	Demopolis	6,724	86	$143,000	$32,743
26	Alexander City	14,515	87	$109,100	$41,004
27	Valley	9,195	87	$91,300	$50,445
28	Roanoke	5,931	87	$109,000	$42,360
29	Fairfield	10,749	87	$95,400	$41,439
30	Bessemer	26,063	87	$100,100	$30,284
31	Andalusia	8,719	87	$117,200	$41,410
32	Anniston	21,518	87	$117,500	$41,366
33	Bay Minette	9,297	87	$124,600	$39,588
34	Tillmans Corner	17,419	88	$120,200	$43,989
35	Birmingham	210,928	88	$97,500	$38,832
36	Montgomery	199,054	88	$121,100	$49,608
37	Eufaula	11,878	88	$123,800	$34,713
38	Center Point	15,971	88	$99,400	$45,221
39	Scottsboro	14,452	88	$121,400	$43,713
40	Decatur	54,344	88	$141,000	$49,296
41	Theodore	6,039	88	$113,900	$51,801
42	Muscle Shoals	14,379	89	$151,300	$54,620
43	Ozark	14,350	89	$123,800	$41,894
44	Hartselle	14,421	89	$149,100	$56,323
45	Robertsdale	6,776	89	$126,500	$48,578
46	Albertville	21,620	89	$125,700	$51,095
47	Cullman	16,072	90	$150,300	$52,301
48	Forestdale	8,688	90	$121,900	$57,588
49	Wetumpka	8,282	90	$147,700	$46,509
50	Sylacauga	12,132	90	$134,500	$37,093

Methodology

To formulate the list of the cheapest places to live in Alabama, AreaVibes utilized comprehensive data from the Council for Community and Economic Research (C2ER) cost of living index. The report is released annually and offers a detailed comparison of living expenses across various urban areas. The data is meticulously gathered by over 300 independent researchers, ensuring a high level of accuracy and reliability. The C2ER index encompasses more than 60 goods and services, categorized into six essential areas that significantly impact the cost of living. These categories and their respective weightings in the index are as follows: goods and services (33%), groceries (13%), health care (5%), housing (30%), transportation (9%), and utilities (10%).

Map of Cost of Living by State

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The map above is a great way to help you discover the most affordable states across the U.S. By highlighting states with the lowest cost of living, this map provides an in-depth look at where you can get the most value for your money. By visually representing this data, the map allows users to easily compare different regions and make informed decisions about potential relocations or investments. Additionally, it provides valuable insights into the economic conditions and lifestyle factors that influence these cost of living statistics. Whether you're planning a move, considering a new job, or simply curious about the economic landscape, this map is a useful resource for understanding and navigating the financial implications of living in different states.