A+
11%
Overall NAT. AVG.
10%
Goods & Services NAT. AVG.
17%
Housing NAT. AVG.
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Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.
The cost of living index is based on a national average of 100. For example, if the cost of living is 90, then it is 10% lower than average. If the cost of living is 110, then it is 10% higher than average. The breakdown for each index is as follows: goods & services (33%), groceries (13%), health care (5%), housing (30%), transportation (9%) and utilities (10%). If the cost of living data was unavailable for this city, estimates based upon nearby cities were used.
Index Muscle Shoals Alabama National
Cost of living8988100
Goods & Services9096100
Groceries9496100
Health care8387100
Housing8372100
Transportation9091100
Utilities95102100

An Overview of Cost of Living in Muscle Shoals, AL

The cost of living in Muscle Shoals affects the quality of life one can afford in this new location. It allows people to assess whether they can maintain their preferred lifestyle, including housing, leisure activities and dining options. Your total monthly expenditures can varry depending on the area, as well as many other factors. The cost of living in Muscle Shoals is 89, which is 11% lower than the national average. Knowledge of the cost of living can help individuals make informed decisions about retirement savings, investments, and financial goals.

Is Muscle Shoals Affordable?

Wondering if Muscle Shoals is affordable? It's a question that often comes up when you're thinking about a new city since affordability can really shape your decisions. The cost of living index (covered earlier), housing expenses and income levels all play a part in the affordability equation. In Muscle Shoals, for example, the median home price is 18.1% lower than what folks pay nationally, and monthly rent is 14.8% lower than the usual rates. Plus, income levels matter too, with Muscle Shoals boasting a median household income of $54,620, which is 1.3% lower than the national average.

What Factors can Influence the Cost of Living in Muscle Shoals?

Housing: A sought-after location with high housing demand often leads to increased property values and rental rates, which can significantly inflate the overall cost of living. Conversely, areas with low housing demand, particularly in less desirable locales, tend to experience the opposite effect, causing prices to drop and contributing to a more affordable cost of living. In Muscle Shoals, the housing index stands at 17.1% lower than the national average.

Utilities: Similar to the prices of any goods or services, utility expenses can fluctuate widely, contingent on variables such as climate, available energy sources, geographical location and state regulations. Costs associated with electricity, water, heating, and waste disposal can differ in magnitude, depending on the specific city or state. In Muscle Shoals, the utilities index registers at 5.2% lower than the national average.

Urbanization: Urban areas with extensive amenities and job opportunities tend to have a higher cost of living due to increased demand for services and relocation, resulting in higher home prices and higher rents. Less densely populated rural areas, or areas with less demand tend to have fewer amenities and slower job growth, which results in a lower cost of living.

Where is the Data From?

The Muscle Shoals cost of living data displayed above is derived from the C2ER cost of living index to provide a useful and reasonably accurate measure of living cost differences in urban areas. The index takes into account data from 300 independent researches, covering more than 60 goods and services across 6 different categories, to create an overall index for each area, with 100 being the average. The C2ER index does not include sales or income tax rates in their data, however AreaVibes does include both income and sales tax rates in the overall cost of living score for each area.

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Cost Of Living Quick Facts

  • The cost of living in Muscle Shoals is equal to the Alabama average
  • The cost of living in Muscle Shoals is 11% lower than the national average
  • Muscle Shoals housing is 17% lower than the national average
  • Alabama general sales tax is 22% lower than the national average
  • Alabama state income tax is 23% lower than the national average

Most Affordable Places to Live in and Around Muscle Shoals

See all the best places to live around Muscle Shoals

Compare Muscle Shoals, AL Cost of Living

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      Salary Calculator

      This is how much you would need to earn in
      Price difference in compared to
      Cost of living index
      Goods & Services index
      Groceries index
      Health care index
      Housing index
      Transportation index
      Utilities index

      Median Income & Debt-To-Income Ratio

      Median Income Per Year Per Month Max Budget (28% DTI) Max Budget (36% DTI)
      Owners$66,260$5,522$1,546$1,988
      Renters$35,250$2,938$822$1,058
      The percentage of monthly income spent on housing related expenses can help predict the affordability of housing in Muscle Shoals, AL, as well as what the overall cost of living might be. Generally, a good rule to follow is that the debt-to-income (DTI) level you want to maintain is 28 percent or less of your income on your rent or mortgage payments and not more than 36 percent of income on all expenses and debts. In Muscle Shoals, homeowners have a median income of $66,260. Using that number, a maximum of $1,546 per month should be allocated to housing expenses. For those who are renting instead of owning, the median income is $35,250, which means there is a maximum of $822 to be spent on the costs of renting a home or apartment.

      Alabama Sales Tax

      State General Sales Tax With Max Surtax
      Alabama 4% 13.5%

      Alabama Income Tax

      State Income Tax (Low) Income Tax (High)
      Alabama 2% 5%

      Goods & Services

      Item Muscle Shoals National avg. Difference
      Haircut $17.13$24.2629.4%
      Beauty Salon $32.58$45.5628.5%
      Toothpaste $3.74$3.700.9%
      Shampoo $1.04$1.2819.0%
      Movie $13.50$12.1311.2%
      Bowling $17.50$18.002.8%

      Groceries

      Item Muscle Shoals National avg. Difference
      Ground Beef $5.67$5.842.9%
      Fried Chicken $1.67$1.576.2%
      Milk $4.49$4.674.0%
      Potatoes $5.06$4.932.5%
      Pizza $9.73$12.0919.5%
      Beer $10.23$10.411.7%

      Health Care

      Item Muscle Shoals National avg. Difference
      Optometrist $80.87$125.6835.7%
      Doctor $90.50$135.7833.3%
      Dentist $94.28$113.2916.8%
      Ibuprofen $10.04$10.655.8%
      Lipitor $519.93$468.6011.0%

      Housing

      Item Muscle Shoals National avg. Difference
      Home Price $151,300.00$184,700.0018.1%
      Avg. Mortgage Payment $1,703.27$2,346.6927.4%
      Apartment Rent $809.00$949.0014.8%

      Transportation

      Item Muscle Shoals National avg. Difference
      Gasoline $3.14$3.469.4%
      Tire Balancing $52.00$59.9213.2%

      Utilities

      Item Muscle Shoals National avg. Difference
      All Electricity $180.93$193.996.7%
      Phone $186.22$192.253.1%
      Although the cost of living data is updated regularly, this cost of living information is to be used as estimates only as prices can change on an ongoing basis.

      Nearby cities with low cost of living

      City Population Cost of Living Index National Avg.
      Leighton, AL7897623.8%
      Town Creek, AL9438020.4%
      Hatton, AL598118.8%
      Sheffield, AL8,9258218.3%
      Underwood-Petersville, AL2,7078217.9%
      Muscle Shoals, AL14,3798911.4%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Saint-Charles-Borromée, QC14,372n/a 
      East Milton, FL14,3888910.5%
      Mountain View County, AB14,390n/a 
      Livingston, CA14,39211414.3%
      Robbinsdale, MN14,3931000.3%
      Muscle Shoals, AL14,3798911.4%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.