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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
The numbers are clear: 5 of 5 cities in Alabama beat the national cost-of-living benchmark of 111. Mobile stands out at 74 on the index, with rent of $1,264/month and household income of $51,090. Assembled from 2026 Census, Zillow, and BLS data.
| Rank | City | Housing Index | Cost Index | Median Rent | |
|---|---|---|---|---|---|
| 1 | Mobile | 74 | 74 | $1,264 | Details |
| 2 | Birmingham | 76 | 76 | $1,309 | Details |
| 3 | Huntsville | 77 | 77 | $1,320 | Details |
| 4 | Montgomery | 77 | 77 | $1,317 | Details |
| 5 | Tuscaloosa | 87 | 87 | $1,490 | Details |
#1 Ranked: Mobile — cost index 74, rent $1,264/mo, income $51,090
Mobile rent up 3% over the past year
5 of 5 cities come in below the national cost-of-living average of 111
Data sourced from Census Bureau, Zillow, BLS, and Tax Foundation — current as of 2026
The numbers are clear: 5 of 5 cities in Alabama beat the national cost-of-living benchmark of 111. Mobile stands out at 74 on the index, with rent of $1,264/month and household income of $51,090. Assembled from 2026 Census, Zillow, and BLS data.
Here's Mobile by the numbers — and there's a lot to like (and a little to watch). Cost index: 74. Rent: $1,264/month. Income: $51,090/year. Home price: $191,840. Population: 182,595. The strongest category is Housing at 74; the most expensive is Healthcare at 95. Translate that rent to annual numbers, and residents are saving renters $7,572 per year vs. the national median. For families with student loans, that cost gap is a second income.
Bottom line: Mobile leads this ranking for clear, data-backed reasons — but the "best" city depends on your priorities. Click into any city below to see the full detail page with 12-month trend charts, profession-specific salary data, and a breakdown of all five cost categories. If you're seriously considering a move, use our salary calculator to model your specific income against these numbers.
182,595 residents · Alabama
A closer look at Mobile: the cost index of 74 breaks down to a Housing index of 74 (strongest category) and a Healthcare index of 95 (weakest). And on balance, median rent is $1,264/month — 33% below the national median — while household income sits at $51,090, meaning locals spend about 30% of income on rent. That exceeds the recommended 30% threshold — affordability here depends on earning above the median.
196,644 residents · Alabama
Here's Birmingham by the numbers — and there's a lot to like (and a little to watch). Cost index: 76. Rent: $1,309/month. Income: $44,376/year. Home price: $134,655. Population: 196,644. The strongest category is Housing at 76; the most expensive is Healthcare at 95. Translate that rent to annual numbers, and residents are saving renters $7,032 per year vs. the national median. Even in a down market, this kind of cost structure protects household budgets. One to watch.
225,564 residents · Alabama
Real talk: a closer look at Huntsville: the cost index of 77 — which, honestly, is lower than you'd expect here — breaks down to a Housing index of 77 (strongest category) and a Healthcare index of 95 (weakest). Median rent is $1,320/month — 30% below the national median — while household income sits at $70,778, meaning locals spend about 22% of income on rent. That's a healthy margin by any standard.
195,287 residents · Alabama
Montgomery earns its position at #4 through a combination that's hard to replicate. The 77 cost index sits 34 points below the national baseline, and the $55,687 median income means purchasing power here is amplified by the low cost base. Homes list at $147,533 — $319,837 below the national median — a genuine ownership opportunity. On the cost side, Housing leads the way at 77, while Healthcare trails at 95.
111,338 residents · Alabama
Tuscaloosa comes in at #5. Rent is $1,490 — worth pausing on — a month. Household income is $48,536. The cost of living index is 87. That's more or less in line with the region.
Cities are ranked by their housing cost sub-index within Alabama. Each sub-index is derived from the overall cost of living with regional adjustment factors. All data is sourced from federal agencies and verified research institutions. Cost of living indices are normalized to 100 (national median) using Zillow rent as the primary signal, with sub-category adjustments derived from regional BLS price data. Rankings are updated monthly as new data is released.
Mobile ranks #1 in Alabama for this analysis with a cost index of 74 and median income of $51,090.
Mobile, AL has the lowest housing index at 74, compared to the national average of 100.
Our cost of living index uses real Zillow rent data as the foundation, indexed to 100 (national median). Sub-categories (housing, food, transport, utilities, healthcare) are derived from the overall index with regional adjustments. Data is updated monthly.
Mobile (ranked #1) has a cost index of 74 and rent of $1,264/mo, while Tuscaloosa (ranked #5) has a cost index of 87 and rent of $1,490/mo — a 13-point difference in cost of living.
City data is refreshed monthly from Census Bureau population estimates, Zillow rent and home price indices, BLS salary data, and Tax Foundation tax rates. Last updated: 2026.
The median 1-bedroom rent in Mobile is $1,264/month as of 2026, based on Zillow's Observed Rent Index. This is $631 below the national median of $1,895/month.
The median home price in Mobile is $191,840, which is 3.8× the local median income. It's on the edge of affordability for median-income households. The national median home price is $467,370.
Alabama has a 5% state income tax rate. Combined state and local sales tax averages 9.28%, and the effective property tax rate is 0.37%.
This ranking was generated using data current as of early 2026. Population and income data comes from the Census Bureau's American Community Survey (5-year estimates). Rent and home price data is from Zillow's monthly releases. Tax rates are from the Tax Foundation's 2025 edition. Rankings are refreshed monthly.