Birmingham

Birmingham, Alabama is a growing city with a population of approximately 196,644. The overall cost of living index sits at 87, which is below the national average of 100. This means everyday expenses — housing, groceries, transportation, and healthcare — are roughly 13% less expensive compared to the typical U.S. city.

Housing is the largest cost driver in Birmingham. Median rent is $1,309 per month, while the median home price is $134,655. At a median household income of $44,376, rent consumes roughly 35% of gross income, which represents a moderate housing cost burden. The housing sub-index of 68 reflects well below-average housing expenses.

Beyond housing, healthcare is the most elevated non-shelter expense in Birmingham with a sub-index of 90, while utilities is comparatively more affordable at 80. State-level taxes also shape the true cost of living: Alabama applies a 5.00% income tax rate, and property tax averages 0.37% of assessed home value. The combined sales tax rate is 9.28%. Local income tax may apply in some municipalities.

Over the past twelve months, the cost of living in Birmingham has remained relatively stable. Among the 5 tracked cities in Alabama, Birmingham ranks #1 from most to least affordable. Whether you're evaluating a job offer, planning a relocation, or comparing salary purchasing power, these numbers give a grounded, data-backed view of what life in Birmingham actually costs.