Cost of Living in Birmingham, AL
Birmingham cost of living index: 67.69 (below the US average). Median home price: $114,900.
Updated 2026 • Based on 21 local zip codes
📍 Some data sourced from nearby metro area
% below the national average
Housing
Data from 21 zip codes
Housing costs in Birmingham, AL based on real market data from 21 local zip codes.
When considering a move to Birmingham, AL, the housing situation presents an accessible market highlighted by a housing index of 63.32. The median home price of 114900.0 is relatively affordable, making homeownership feasible for many. Additionally, whether renting a 2-bedroom apartment or a house, you’ll face an average monthly cost of 54513.68. This stability in rental prices suggests limited fluctuations, promoting long-term living opportunities. It’s also advantageous to compare these factors against local salaries, job opportunities, and amenities to guide your decision-making process more effectively.
Last updated: January 2026
Utilities
The cost of utilities such as electricity, natural gas, and other services can significantly impact the overall cost of living.
Living in Birmingham, AL could entail variable utility costs. Electricity costs sit at $15.03, while natural gas is priced at $21.76 per Thousand Cubic Feet. Expect to budget about $104.31 monthly for other services like water and garbage.
Cost Breakdown by Category
Local Income & Economy in Birmingham, AL
How far does your money go in Birmingham? Understanding the relationship between income and cost of living is key to evaluating affordability.
How We Calculate Adjusted Purchasing Power in Birmingham
The adjusted purchasing power shows what a Birmingham, AL household income is actually worth after accounting for local prices. We calculate it using the formula: Purchasing Power = Median Income ÷ Cost of Living Index × 100
For Birmingham, that's $42,464 ÷ 67.69 × 100 = $62,733. This means a household earning the median income in Birmingham has the equivalent buying power of $62,733 in a city where the cost of living index equals the national baseline of 100.
Birmingham is well below the national cost of living average at 67.69, making it one of the more affordable places to live in AL. The median income of $42,464 has an effective purchasing power of $62,733 — a meaningful boost that allows residents to save more, invest in real estate, or enjoy a higher standard of living compared to expensive metro areas.
However, it's important to note that the poverty rate in Birmingham is 19%, which is above the national average. While living costs are low, income levels may also be lower for some households. Understanding both the cost of living and local income distribution is important when evaluating whether Birmingham, AL is the right fit for your budget and lifestyle.
💡 Purchasing power is calculated by dividing the local median household income by the cost of living index and multiplying by 100. A result higher than the nominal income means your money goes further; a lower result means local prices erode your earnings. The US baseline cost of living index is 100.
Pros & Cons of Living in Birmingham
Pros
- • Friendly community vibes
- • Rich historical significance
- • Access to outdoor activities
- • Good music and arts scene
- • Diverse dining choices
- • Growing job market
- • Affordable housing options
- • Family-friendly events available
- • Strong college presence
- • Emerging tech industry
Cons
- • High crime rates reported
- • Traffic congestion issues
- • Limited nightlife options
- • Healthcare access challenges
- • Limited public transportation
- • Perception of racism exists
- • Weather can be oppressive
- • Public schools need improvement
- • Some areas are not walkable
- • Economic inequality present
💡City Insights
Birmingham scores 10/10 for affordability, 5/10 for safety, and 5/10 for family-friendliness — an good overall profile. Its strongest aspect is affordability, making it particularly suitable for budget-conscious buyers. This balanced profile makes Birmingham worth considering for various lifestyle priorities.
Frequently Asked Questions
What is the cost of living in Birmingham, AL? ▼
The cost of living in Birmingham, AL is 32% lower than the national average, with a cost of living index of 68 (where 100 represents the U.S. average). Housing typically accounts for the largest portion of living expenses. See full cost of living breakdown →
How much does it cost to buy or rent a home in Birmingham, AL? ▼
In Birmingham, AL, The median home price is $114,900. requiring approximately $67,479 annual income to afford. Average rent is $54,514/month (requiring ~$2,180,547/year income). The local median household income is $42,464, making homeownership attainable for typical residents. Explore Birmingham real estate data →
Is Birmingham, AL a safe place to live? ▼
Birmingham, AL is average in terms of safety, with crime rates near the national average. Safety varies significantly by neighborhood. View detailed Birmingham crime statistics →
What salary do you need to live comfortably in Birmingham, AL? ▼
To live comfortably in Birmingham, AL and afford a median-priced home of $114,900, you would typically need a household income of $28,725 to $35,906 per year. The local median household income is $42,464. Renting requires approximately $2,180,547/year (at $54,514/month). See full affordability analysis →
What are the best neighborhoods in Birmingham, AL? ▼
The best neighborhoods in Birmingham, AL depend on your priorities. For families, look for areas near top-rated schools with lower crime rates. For affordability, neighborhoods throughout the city offer good value since the median home price of $114,900 is below the national average.
How are the taxes in Birmingham, AL? ▼
Tax rates in Birmingham, AL include state and local components. The cost of living index of 68 suggests a lower overall tax and expense burden cost environment compared to the national average. View detailed Birmingham tax information →
How does Birmingham, AL compare to nearby cities? ▼
Birmingham, AL offers a more affordable alternative to nearby communities. With a cost of living index of 68, median home prices of $114,900, and a crime rate of 0 per 1,000 residents, you can compare these metrics side-by-side. Use the compare feature to evaluate specific cities.
What is the weather like in Birmingham, AL? ▼
Weather in Birmingham, AL varies by season. Climate data varies by season. View detailed Birmingham climate & environment data →
What factors affect cost of living in Birmingham, AL? ▼
The main factors affecting cost of living in Birmingham, AL include housing costs (the biggest factor), utilities, groceries, transportation, and healthcare. Local taxes and the overall economic conditions also play a role.
Housing Costs by Zip Code
Detailed housing data across 21 zip codes in Birmingham, AL.
| Zip Code | Median Home Price | Avg Rent | 2BR Rent | For Sale | For Rent |
|---|---|---|---|---|---|
| 35203 | $310,000 | $2,055/mo | $2,300/mo | 45 | 21 |
| 35204 | $99,000 | $1,015/mo | $1,000/mo | 59 | 23 |
| 35205 | $248,000 | $1,599/mo | $1,300/mo | 105 | 140 |
| 35206 | $110,000 | $1,093/mo | $1,000/mo | 119 | 76 |
| 35207 | $58,000 | $1,078/mo | — | 43 | 15 |
| 35208 | $105,000 | $1,151/mo | $895/mo | 126 | 68 |
| 35209 | $315,000 | $2,268/mo | $1,500/mo | 75 | 44 |
| 35211 | $99,900 | $1,267/mo | $945/mo | 125 | 76 |
| 35212 | $165,999 | $1,177/mo | $900/mo | 68 | 23 |
| 35213 | $458,000 | $2,500/mo | $326,500/mo | 30 | 2 |
| 35214 | $114,900 | $1,223/mo | $1,255/mo | 105 | 36 |
| 35217 | $85,000 | $1,116/mo | $850/mo | 94 | 39 |
| 35218 | $79,900 | $1,046/mo | $895/mo | 33 | 35 |
| 35221 | $85,000 | $1,094/mo | — | 26 | 12 |
| 35222 | $369,900 | $1,992/mo | $1,850/mo | 50 | 24 |
| 35223 | $795,000 | $3,163/mo | $5,000/mo | 32 | 6 |
| 35224 | $73,000 | $1,175/mo | $975/mo | 38 | 19 |
| 35228 | $79,900 | $1,067/mo | $950/mo | 83 | 54 |
| 35233 | $515,000 | $1,613/mo | $684,900/mo | 36 | 10 |
| 35234 | $165,000 | $1,046/mo | $850/mo | 56 | 18 |
| 35242 | $579,900 | $2,735/mo | $1,895/mo | 318 | 48 |
Explore More About Birmingham, AL
📅 Last Updated: January 2026
Sources: U.S. Census Bureau (ACS), Bureau of Labor Statistics, Council for Community and Economic Research (C2ER), Zillow, Redfin