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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

The verdict

Alabama costs less than 88% of U.S. states — a statewide index of 88.8, 11.2% below the national average.

88.8
statewide cost index (US average = 100)
#45
of 51 states by overall cost
bottom 12%
nationally, among all states
61.8
rents RPP — the biggest budget swing

A $100,000 national salary carries the purchasing power of about $112,583 when earned in Alabama.

Reading the Alabama Cost of Living Picture

The Bureau of Economic Analysis places Alabama's statewide Regional Price Parity at 88.8 for the 2024 data year, 11.2% less expensive the U.S. baseline of 100. Inside the headline figure, the state's categories sit near average, while rents offer the biggest relief at 61.8. That internal spread — rather than the single state number — is what determines whether a household actually feels priced in or priced out.

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 — the rent figure tends to be the most volatile input and deserves its own line-item review before any relocation decision.

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. Pair these numbers with metro-specific wage data and rent tables before treating the statewide figure as your planning assumption.

88.8
Overall
96.4
Goods
84.6
Services
61.8
Rents

Alabama vs every U.S. state

Where this state sits in the national cost distribution

89 Top 88% higher than 12% of 51 US states

84–87: 2 US states (4%). Below this entry. 87–90: 7 US states (14%). This entry sits in this band. 90–93: 8 US states (16%). Above this entry. 93–96: 6 US states (12%). Above this entry. 96–99: 8 US states (16%). Above this entry. 99–102: 5 US states (10%). Above this entry. 102–105: 8 US states (16%). Above this entry. 105–108: 3 US states (6%). Above this entry. 108–111: 4 US states (8%). Above this entry. 111–114: 0 US states (0%). Above this entry. 114–117: 0 US states (0%). Above this entry. This state 84 117 every US state (incl. DC), bucketed by value

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

Most Expensive in Alabama → Cheapest in Alabama →

Metro areas in Alabama, ranked by cost

# Metro area OverallGoodsServicesRents
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.

RPP History

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

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.

Cost of Living Guides

Cheapest Metros to Live in 2026
Official BEA data on the most affordable areas
Most Expensive Cities: 2026 Rankings
What drives high costs and how to cope
Cost of Living vs Wages
Where your dollar goes furthest
Understanding Regional Price Parities
How BEA constructs RPP data

View all guides →

Frequently Asked Questions

What is the cost of living in Alabama? ▼
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.
Is housing expensive in Alabama? ▼
Rents in Alabama are indexed at 61.8, which is 38.2% below the national average. The state is relatively affordable for renters.
Which is the most expensive metro in Alabama? ▼
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.

Source: Bureau of Economic Analysis, Regional Price Parities Bureau of Economic Analysis, Regional Price Parities Index where national average = 100

Read our methodology — how this data is sourced, computed, and verified.