Cost of Living in Birmingham, AL
Population 199,322 · Alabama · Data vintage 2023
(100 = US avg)
At $44,376, median household incomes in Birmingham land roughly 40% below the US median, a gap that tends to persist across local labor-market indicators. A poverty rate near 25% adds context to the income figures — well above the US average, and worth factoring into any comparison with cities on the coasts or in the Rockies.
Cost Overview
Scale: 100 = US national average. Green < 90, Red > 110.
About the Cost of Living in Birmingham
The median home value in Birmingham is $138,600 — 55% below the national median of $305,000. Median rent runs $1,047/month, 20% lower than the national median of $1,314/month. The median household income of $44,376/year is 40% lower than the US median of $74,580. The local unemployment rate is 6.1%, above the national average of 4.8%. Alabama's top state income tax rate is 5.0% and the combined sales tax is 9.2%. Overall, Birmingham has a cost of living index of 59 versus the US average of 100, meaning it is 41% less expensive.
🏠 Housing
HUD Fair Market Rents by Bedroom
💰 Estimated Monthly Budget
Estimates based on median data and national averages. Actual costs vary.
🛒 Food & Groceries
National BLS average prices (2023). Local prices may vary.
🚗 Transportation
Commute Mode
⚡ Utilities
📋 Taxes
💼 Income & Employment
🎓 Education
👥 Demographics
💨 Air Quality
EPA AQS 2023 — county-level monitoring data
Frequently Asked Questions
What is the cost of living in Birmingham, AL?
Birmingham has a cost index of 59 (100 = national average). It is 41% below the national average.
What is average rent in Birmingham, AL?
The median gross rent in Birmingham is $1,047 per month based on 2023 Census data.
What is the average home price in Birmingham?
The median home value in Birmingham is $138,600 according to Zillow and Census data.
What is the median income in Birmingham?
The median household income in Birmingham is $44,376 per year (2023 ACS 5-year estimates).
What is the sales tax in Birmingham, AL?
The combined state and local sales tax rate in Birmingham is 9.2%. The Alabama state income tax top rate is 5.0%.
Is Birmingham, AL affordable?
Yes, Birmingham is generally considered affordable, with a cost of living index of 59 — about 41% below the US national average of 100.
Birmingham at a Glance
- Population
- 199,322
- Median Income
- $44,376
- Home Value
- $138,600
- Median Rent
- $1,047/mo
- Unemployment
- 6.1%
- Sales Tax
- 9.2%
Nearby Cities
Compare Birmingham
Explore county-level cost of living data
Alabama Rankings
Similar Cost Cities
Cities in other states with comparable housing costs