Alabama attracts Americans from all over. And there’s a good reason why: Cheaper houses, tax benefits, and affordable healthcare. You can’t go wrong with the Cotton State!
Although property prices have risen in recent years, the average home value in the top 10 cheapest cities is still only around $400,000. Selma’s cost of living is 29.9% lower than the national average, and Talladega is 23.3% more affordable than the rest of the country.
But that’s not all! Retirees can enjoy Bessemer’s friendly community and peaceful environment, with homes averaging a nominal $112K. Meanwhile, Birmingham offers a booming job market in education, healthcare, and technology, with median home prices at just $127,795.
Cheapest Places to Live in Alabama in 2025
Here’s our ranking of the most affordable places to live in Alabama. We’ve considered the average household income, median list price, median house rent, and the population of the cities.
| City | Median Home Value | Median House Rent | Cost of Living Compared to National Average | Median Household Income | Population |
|---|---|---|---|---|---|
| 1. Selma | $60,305 | $771 | 29.9% lower ⬇️ | $32,184 | 16,666 |
| 2. Gadsden | $96,982 | $926 | 20.6% lower ⬇️ | $38,699 | 33,229 |
| 3. Bessemer | $112,444 | $1,375 | 13% lower ⬇️ | $37,844 | 25,037 |
| 4. Attalla | $128,410 | $650 | 20.6% lower ⬇️ | $55,429 | 5,818 |
| 5. Anniston | $129,424 | $900 | 21.1% lower ⬇️ | $44,806 | 21,167 |
| 6. Birmingham | $125,889 | $1,175 | 13% lower ⬇️ | $44,376 | 196,644 |
| 7. Talladega | $149,971 | $900 | 23.3% lower ⬇️ | $46,820 | 14,768 |
| 8. Homewood | $512,515 | $1,631 | 13% lower ⬇️ | $108,386 | 27,758 |
| 9. Dothan | $190,872 | $1,250 | 19.6% lower ⬇️ | $55,052 | 71,258 |
| 10. Tuscaloosa | $216,643 | $1,595 | 11.4% lower ⬇️ | $48,536 | 111,338 |
10 Cheapest Places to Live in Alabama
Here’s our list of 10 cities that offer affordable living options in the Cotton State:
#1 Selma
- Median house rent is $771 | Rental prices range between $650 and $1,200.
- Median home value of Selma is $60,305.
- Cost of living in Selma is 29.9% cheaper than the national average.
- 3 Popular Zips in Selma, AL: 36117 | 36542 | 36561
Selma is the most affordable place to live in Alabama and is historically significant due to its pivotal role in the Civil Rights Movement. Besides, shopping centers like Selma Mall and Queen City Market offer lively shopping experiences. Paddling on the Alabama River is a popular recreation among locals, which passes by landmarks like Gardiner Island.
» Selma Homes for Sale: Explore homes in one of the cheapest cities in Alabama.
#2 Gadsden
- Median house rent is $926 | Rental prices range between $550 and $2,900.
- Median home value of Gadsden is $96,982.
- Cost of living in Gadsden is 20.6% cheaper than the national average.
- 3 Popular Zips in Gadsden, AL: 36117 | 36542 | 36561
Groceries in Gadsden are 7.8% lower than the national average. The Coosa River and Noccalula Falls Park, located within the city, make it ideal for outdoor enthusiasts. These places offer activities like boating and hiking. Besides, Stamped and Etowah Chemical Sales & Service are local employers.
» Gadsden Homes for Sale: Browse thousands of property listings in Gadsden.
#3 Bessemer
- Median house rent is $1,375 | Rental prices range between $645 and $3,445.
- Median home value of Bessemer is $112,444.
- Cost of living in Bessemer is 13% cheaper than the national average.
- 3 Popular Zips in Bessemer, AL: 36117 | 36542 | 36561
» Bessemer Homes for Sale: Look affordable housing in cheap cities of Alabama.
#4 Attalla
- Median house rent is $650 | Rental prices range between $650 and $750.
- Median home value of Attalla is $128,410.
- Cost of living in Attalla is 20.6% cheaper than the national average.
- 3 Popular Zips in Attalla, AL: 36117 | 36542 | 36561
Attalla is a great place to live and home to the serene Noccalula Falls Park. The city offers Wills Creek Vineyards where visitors can enjoy wine tastings and scenic views. Notable employers include Crown Column & Millwork and Max Packaging Co. Its affordable and living costs make Attalla appealing to families and retirees.
» Attalla Homes for Sale: Search thousands of property listings in Alabama to live.
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#5 Anniston
- Median house rent is $900 | Rental prices range between $495 and $2,200.
- Median home value of Anniston is $129,424.
- Cost of living in Anniston is 21.1% cheaper than the national average.
- 3 Popular Zips in Anniston, AL: 36117 | 36542 | 36561
Often referred to as the ‘The Model City,’ Anniston’s cost of living is 21.1% lower than the US average. The city also boasts rich history displayed at The Anniston Museum of Natural History and Berman Museum of World History. You can also visit Cheaha State Park to hike or camp.
» Anniston Homes for Sale: Browse through affordable and cheap houses in Alabama.
#6 Birmingham
- Median house rent is $1,175 | Rental prices range between $475 and $10,500.
- Median home value of Birmingham is $125,889.
- Cost of living in Birmingham is 13% cheaper than the national average.
- 3 Popular Zips in Birmingham, AL: 36117 | 36542 | 36561
Birmingham is a vibrant city and home to several universities like Newman University and the University of Birmingham. The city is home to several high-quality medical facilities like the UAB Hospital, which makes it ideal for seniors. Besides, BL Harbert International and Burr & Forman are key local employers.
» Birmingham Homes for Sale: Find a home in one of the cheapest places to live in Alabama.
#7 Talladega
- Median house rent is $900 | Rental prices range between $495 and $1,695.
- Median home value of Talladega is $149,971.
- Cost of living in Talladega is 23.3% cheaper than the national average.
- 3 Popular Zips in Talladega, AL: 36117 | 36542 | 36561
Talladega is indeed one of the cheapest cities to live in Alabama. It is renowned for the Hall of Heroes Military History Museum which displays military artifacts. You can also visit Talladega Super Speedway if you enjoy motorsports. NHB Industries and Coosa Valley Electric are key local employers, which makes it ideal for young professionals.
» Talladega Homes for Sale: Find affordable and cheap houses in Alabama.
#8 Homewood
- Median house rent is $1,631 | Rental prices range between $895 and $3,500.
- Median home value of Homewood is $512,515.
- Cost of living in Homewood is 13% cheaper than the national average.
- 3 Popular Zips in Homewood, AL: 36117 | 36542 | 36561
Transportation in Homewood is notably cheaper, and costs 17.8% less than the US median. The city is also home to the McWane Science Center that houses a 250 seater IMAX Dome Theater. Homewood Schools and Era King Real Estate also provide frequent employment locally. This makes it ideal for professionals and families.
» Homewood Homes for Sale: Search homes in cheapest city to live in Alabama.
#9 Dothan
- Median house rent is $1,250 | Rental prices range between $400 and $3,350.
- Median home value of Dothan is $190,872.
- Cost of living in Dothan is 19.6% cheaper than the national average.
- 3 Popular Zips in Dothan, AL: 36117 | 36542 | 36561
The city’s 16.3% job growth is driven by key firms like AAA Cooper Transportation and The Cochran Firm. This makes it ideal for professionals. It is also home to the Dothan Area Botanical Gardens, a perfect destination for nature enthusiasts. Adventureland, a popular venue, also offers family-friendly entertainment for all ages.
» Dothan Homes for Sale: Browse affordable properties in the cheapest cities to live in Alabama.
#10 Tuscaloosa
- Median house rent is $1,595 | Rental prices range between $425 and $8,500.
- Median home value of Tuscaloosa is $216,643.
- Cost of living in Tuscaloosa is 11.4% cheaper than the national average.
- 3 Popular Zips in Tuscaloosa, AL: 36117 | 36542 | 36561
Groceries in Tuscaloosa cost 4.4% less than the US median. It houses the University of Alabama, established in 1831, which is also the largest in the State. Phifer Incorporated, Peco Foods, and the Mercedes-Benz factory employ several residents as well. This makes Tuscaloosa ideal for students and young professionals.
» Tuscaloosa Homes for Sale: Find cheap places to live in Alabama.
So, Where Is the Cheapest Place to Live in Alabama?
If you want to move to Alabama, you will find cheap houses for sale in Alabama under 100K in cities like Selma, Gadsden, and Bessemer. They also offer stable job opportunities, and a low cost of living which is more affordable than other Alabama cities.
Cities like Tuscaloosa and Homewood have a slightly expensive cost of living but provide better job opportunities. You must research the home prices and living costs. Also, getting a mortgage pre-approval helps you stand out in the competition before buying a house in Alabama.
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Research Methodology
To rank the top cities in Alabama, we analyzed all the regions, evaluating them based on specific criteria. Below is a breakdown of the factors used and the sources of information that informed our rankings.
- Population: World Population Review [1]
- Median Home Price: Zillow [2]
- Median Rent: Zillow [3]
- Cost of Living: Rent Cafe [4]
Frequently Asked Questions
What is the cheapest place to live in Alabama?
The cheapest place to live in Alabama is Selma. It offers one of the most affordable housing at 68.5% lower than the national average.
» 10 Cheapest Places to Live in Alabama: Find out the other cheapest places to live in Alabama.
Is Alabama a cheap place to live?
Yes, it is. The median home value is $225,130. If you're looking for cities with affordable housing and a low cost of living, you can try your luck in some of these cheapest places in America.
Where is the best place to live in Alabama?
The best place to live in Alabama is Gadsden, followed by Montgomery, Talladega, Bessemer, Anniston, Birmingham, and Ozark.
Which Alabama city has the lowest cost of living?
Selma has the lowest cost of living, which is 29.9% and 16.6% lower than the national and state average, respectively.
