State cost profile · 2024 BEA RPP
Cost of Living in Alabama
Statewide Regional Price Parities for Alabama from the Bureau of Economic Analysis, overall, goods, services, and rents vs the U.S. average of 100, across 12 metro areas.
- 88.8
- Statewide RPP
- #45
- of 51 states by cost
- 61.8
- Rents RPP
- 12
- Metro areas
Alabama ranks #45 of 51 states by cost, and its statewide price index has held steady since 2008.
- stable since 2008
- fell -0.3 points in the 2023-2024 release
- similar cost to North Dakota
The verdict
Alabama costs less than 88% of U.S. states, a statewide index of 88.8, 11.2% below the national average.
- Rents
- furthest category from 100, at 61.8
- North Dakota
- closest statewide cost peer, 0.1 points away
- Daphne-Fairhope-Foley
- highest-cost metro, 94.7
- Dothan
- lowest-cost metro, 83.8
A $100,000 national salary carries the purchasing power of about $112,583 when earned in Alabama.
Metro areas in Alabama, ranked by cost
| # | Metro area | Overall | Goods | Services | Rents |
|---|---|---|---|---|---|
| 1 | Daphne-Fairhope-Foley | 94.7 | 96.4 | 83.3 | 89.2 |
| 2 | Huntsville | 93.1 | 96.4 | 83.9 | 77.9 |
| 3 | Birmingham | 91.6 | 96.4 | 83.8 | 71.9 |
| 4 | Montgomery | 89.7 | 96.4 | 84.9 | 64.3 |
| 5 | Mobile | 88.1 | 96.4 | 84.2 | 60.1 |
| 6 | Auburn-Opelika | 87.9 | 96.4 | 83.9 | 62.1 |
| 7 | Tuscaloosa | 87.7 | 96.4 | 84.4 | 58.2 |
| 8 | Decatur | 87.2 | 96.4 | 84.7 | 58.1 |
| 9 | Anniston-Oxford | 85.9 | 96.4 | 87.1 | 54.7 |
| 10 | Gadsden | 85.7 | 96.4 | 86.7 | 53.7 |
| 11 | Florence-Muscle Shoals | 84.8 | 96.4 | 85.8 | 47.7 |
| 12 | Dothan | 83.8 | 96.4 | 84.3 | 46.9 |
The Rents RPP index measures housing costs relative to the national average (100). For the federal 40th-percentile Fair Market Rent by bedroom size and county, see the HUD Fair Market Rents dataset.
Reading the Alabama Cost of Living Picture
Alabama sits in an affordability lane closest to North Dakota, South Dakota, Louisiana. A lower statewide index does not mean every place or budget category is cheap; it means this state belongs with those peers before a household narrows to a metro. The highest category and Rents are 34.6 points apart, so the statewide average joins two materially different household experiences.
Alabama captures 12 metro areas in the BEA dataset, and the range across them is meaningful. Daphne-Fairhope-Foley, AL leads on cost at 94.7, while Dothan, AL sits at the opposite end at 83.8 - a gap of 10.9 index points inside a single state. For goods the state indexes at 96.4, for services 84.6, and for rents 61.8. Rents run 27.0 points below the statewide index here, so housing is what pulls the whole figure down — a household that already owns outright captures much less of that discount than a renter does.
Over time, Alabama's statewide index has held steady within 0.1 points, suggesting a stable competitive position against other states. Practically, this means a $100,000 national salary delivers the purchasing power of about $112,583 of national buying power when earned inside Alabama, and a household relocating here would need roughly $88,823 to reproduce a $100K lifestyle. With 12 reporting metros inside the state, treat this figure as the midpoint of a range rather than a quote for any one address.
Alabama vs every U.S. state
Where this state sits in the national cost distribution
89 Bottom 12% higher than 12% of 51 US states
Each bar is a band; taller bars hold more US states. The dashed line + filled bar mark this entry. Hover or tap any bar for its full count, share, and where it sits relative to this entry.
Source U.S. Bureau of Economic Analysis, Regional Price Parities · 2024
Alabama RPP history, 2008–2024
The statewide index has changed by only 0.1 points from 2008 to 2024. The line shows every retained BEA release against the national benchmark of 100; the table preserves the component detail.
| Year | Overall |
|---|---|
| 2008 | 88.9 |
| 2009 | 87.8 |
| 2010 | 89.8 |
| 2011 | 90.0 |
| 2012 | 90.6 |
| 2013 | 90.3 |
| 2014 | 90.2 |
| 2015 | 89.7 |
| 2016 | 90.6 |
| 2017 | 90.1 |
| 2018 | 87.4 |
| 2019 | 88.3 |
| 2020 | 87.6 |
| 2021 | 88.1 |
| 2022 | 88.0 |
| 2023 | 89.1 |
| 2024 | 88.8 |
Latest BEA release change
What changed from 2023 to 2024
Alabama's overall RPP fell -0.3 points, from 89.1 in 2023 to 88.8 in 2024. The largest category move was services, changing from 89.9 to 84.6. RPP is a relative price index, so this reports a change against the national benchmark rather than a household's dollar bill.
What this means in Alabama
The statewide index is a starting point, cost varies metro to metro within Alabama.
- Don't rely on the state figure alone: Daphne-Fairhope-Foley (94.7) and Dothan (83.8) sit 11 index points apart inside Alabama. Check your specific metro.
- Rents index at 61.8 (38.2% below average) - the largest swing in the RPP. Review the housing line before any relocation decision. Highest rents
- Weighing Alabama against another state? Convert your salary to local purchasing power first. Salary calculator
RPP is BEA's annual price-level benchmark (national average = 100) for the data year shown, pair it with local wages and current rents before deciding.
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Cost of living guides →, cheapest and most-expensive rankings, cost of living vs wages, and how BEA constructs RPP data.
States with Similar Cost of Living
These states have RPP indices closest to Alabama, making them useful peers for relocation or budget comparison.
Nationwide states with similar overall cost or rent prices
Two BEA RPP-derived peer sets for Alabama: nearest states by overall regional price parity and by rents RPP. These are labelled nationwide neighborhoods, distinct from the closest-RPP list above.
Similar overall RPP
Nearest states by overall regional price parity (88.8 here).
Similar rents RPP
Nearest states by rents regional price parity (61.8 here).
Source: Bureau of Economic Analysis, Regional Price Parities Index where national average = 100
Frequently Asked Questions
How much cheaper is living in Alabama than the U.S. average?
Alabama has a Regional Price Parity (RPP) index of 88.8, meaning it is 11.2% less expensive than the national average. Goods are indexed at 96.4, services at 84.6, and rents at 61.8.
What salary in Alabama equals $100K nationally?
To maintain the same purchasing power as a $100,000 salary at the national average, you would need approximately $88,823 in Alabama. Conversely, $100K earned in Alabama has the purchasing power of $112,583 at the national average.
How much of Alabama's affordability is rents?
Rents in Alabama are indexed at 61.8, which is 38.2% below the national average. The state is relatively affordable for renters.
Which metros stretch Alabama's cost range the widest?
The most expensive metro area in Alabama is Daphne-Fairhope-Foley, AL with an RPP of 94.7. The most affordable is Dothan, AL at 83.8. There are 12 metro areas in Alabama with BEA price data.
Is Alabama getting more expensive?
From 2008 to 2024, Alabama's overall cost index changed by -0.1 points (from 88.9 to 88.8). The cost of living has remained relatively stable.
Data sources
- BEA Regional Price Parities (RPP), the cost-of-living indices shown on this page
- U.S. Census Bureau, American Community Survey (ACS), gross-rent observations behind the rents component
- BLS Consumer Price Index (CPI), goods and services price relatives
- BLS Occupational Employment and Wage Statistics (OEWS), labor-driven services component
- HUD Fair Market Rents (FMR), 40th-percentile rent cross-reference
Every figure on PlainCost is rendered directly from BEA Regional Price Parity source data, no number is typed in by an editor. See our editorial standards & corrections policy, the methodology behind these numbers, our changelog, or report a data error. Data current as of 2024. Rankings measure the published cost-of-living index only; we don't recommend where to live or rate any metro's quality of life.