A flourishing job market, affordable healthcare, and economic stability have motivated more than 34,000 people to move to Alabama. But it’s not that easy for everyone. With a median home price of $232,529, Alabama can be expensive.
Should that stop you from moving to the Cotton State? Absolutely NOT!
Cities like Bessemer and Selma offer several budget-friendly options. While Selma offers a cost of living 29.9% lower than the national average, the median home price in Bessemer is $116K.
Whether you’re a retiree or a young professional looking for exciting opportunities, Alabama has affordable housing for everyone. Let’s explore some of the cheapest places to live in Alabama!
4 Reasons to live in Alabama 🏖️
- Cheaper Houses: The median home sale price in Alabama is ~232K. But you can get houses between $60K and $224K in cities like Selma, Attalla, and Talladega.
- Tax Benefits: Alabama exempts overtime pay from state income tax, providing relief to hourly paid employees.
- Affordable Healthcare: Grocery in cities that are listed below is up to 16% lower than the national average.
- Cheaper Rentals: The rent prices of these cities are lower than national average. You can save up to $450 per month in rent.
Cheapest Places to Live in Alabama in 2024
This list provides insights into the average household income, median listing price, population, unemployment rate, and poverty rate of the cities.
| City | Median Household Income | Median Home Value | Population | Unemployment Rate | Poverty Rate |
|---|---|---|---|---|---|
| Selma | $31,084 | $60,251 | 17,023 | 6.7% | 29.5% |
| Gadsden | $39,696 | $96,934 | 33,335 | 2.8% | 25.1% |
| Bessemer | $34,953 | $116,711 | 25,264 | 3.9% | 32.0% |
| Attalla | $51,875 | $132,384 | 5,836 | 4.6% | 11.1% |
| Anniston | $45,642 | $133,707 | 21,182 | 2.8% | 22.1% |
| Birmingham | $42,464 | $131,435 | 196,910 | 3.1% | 26.1% |
| Talladega | $37,945 | $158,440 | 14,674 | 2.7% | 28.8% |
| Homewood | $97,366 | $517,931 | 27,758 | 2.0% | 8.31% |
| Dothan | $53,704 | $195,782 | 71,258 | 2.9% | 18.41% |
| Tuscaloosa | $47,257 | $221,294 | 111,338 | 3.1% | 23.11% |
10 Cheapest Places to Live in AL
The annual population growth of 6% since 2010 is reflective of people’s intention to move to Alabama. If you’re considering shifting to the Yellowhammer State, here are some cities that offer affordable living options:
1. Selma
| 🟢 Cost of Living Compared to National Average | 29.9%⬇️ |
| 🏡 Median Home Price | $60,251 |
| 💲 Median Rent | $1,200 |
| 🌅 Known For | Edmund Pettus Bridge |
Selma is an affordable place to live in Alabama. Its median house rent ranges from $650 – $1,800. It also offers affordable transportation which is 32.1% lower than the national average.
Selma played a pivotal role in the Civil Rights Movement. The Selma to Montgomery marches, in particular, contributed to its rich historical heritage and sense of community pride.
Additionally, the city offers range of job opportunities, from healthcare to education to retail. Some of the top employers are AmAppInc and Bush Hog contributes to the growth.
» Homes for Sale in Selma, AL: Find your dream home in cheap areas in Alabama to live.
2. Gadsden
| 🟢 Cost of Living Compared to National Average | 20.6%⬇️ |
| 🏡 Median Home Price | $96,934 |
| 💲 Median Rent | $900 |
| 🏞️ Known For | Noccalula Falls Park |
Gadsden is one of the most budget-friendly rental destinations in Alabama with an average home rent of $600 – $4,500. It also offers affordable grocery, which is 7.8% lower than the national average.
Gadsden offers a diverse range of outdoor recreational opportunities, including access to the Coosa River and nearby Noccalula Falls Park. These attractions make it an ideal destination for nature enthusiasts seeking adventure and natural beauty.
In addition to its natural beauty, Gadsden also boasts a thriving economy with a variety of employment opportunities. The city is home to several major employers such as Stamped and Etowah Chemical Sales & Service.
» Homes for Sale in Gadsden, AL: Browse thousands of property listings in Gadsden.
3. Bessemer
| 🟢 Cost of Living Compared to National Average | 13%⬇️ |
| 🏡 Median Home Price | $116,711 |
| 💲 Median Rent | $1,425 |
| 🏖️ Known For | Bessemer Hall of History Museum |
With rental costs below the national average, Bessemer stands as one of the most affordable cities to live in Alabama. The house rent price is between $500 – $3,000.
Situated amidst the picturesque landscapes of Alabama, Bessemer offers ample opportunities for outdoor activities. Residents can enjoy hiking, fishing, and exploring nearby parks and trails. The city’s economy is bolstered by major employers, providing job opportunities for its residents. The employers like Logista and Landscape Workshop provides ample of job offers .
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4. Attalla
| 🟢 Cost of Living Compared to National Average | 20.6%⬇️ |
| 🏡 Median Home Price | $132,384 |
| 💲 Median Rent | $850 |
| 🏖️ Known For | Noccalula Falls Park |
Attalla offers budget-friendly living with a median rent that is $655 lower than the national median. Moreover, the housing costs being 72.2% below the national average in this city.
Attalla is a great place to live due to its rich history and natural beauty. The city offers a charming southern atmosphere, making it an attractive destination for residents and visitors alike. Also, city is famous for its employment. Crown Column & Millwork and Max Packaging Co. are among the top employers that offers job in the area.
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5. Anniston
| 🟢 Cost of Living Compared to National Average | 21.1%⬇️ |
| 🏡 Median Home Price | $133,707 |
| 💲 Median Rent | $925 |
| 🎨 Known For | Metal Products and Textiles |
Often referred to as the ‘The Model City,’ Anniston’s cost of living is 21.1% lower than the national average. The median home rent in the city range between $500 – $1,750.
Anniston’s affordable food, health, housing, and transportation facilities make the city one of the cheapest places to live in the US. Besides its affordability, employers like Southern State Bank and Wakefield’s offers job in the city. They are well known and prestigious in Anniston.
» Homes for Sale in Anniston, AL: Browse through affordable and cheapest houses in Alabama.
6. Birmingham
| 🟢 Cost of Living Compared to National Average | 13%⬇️ |
| 🏡 Median Home Price | $131,435 |
| 💲 Median Rent | $1,150 |
| 🏫 Known For | Vulcan Park and Museum |
The house rent in Birmingham is between $450 – $8,800. With an average household income of $42,464, you can comfortably live in this city.
Birmingham is home to several esteemed educational institutions like Newman University and the University of Birmingham. These institutes provide quality education opportunities for students of all ages.
Besides this, the city is a hub for employment opportunities with major employers. BL Harbert International and Burr & Forman are two top employers in Birmingham.
» Homes for Sale in Birmingham, AL: Find a home in one of the cheapest places to live in Alabama.
7. Talladega
| 🟢 Cost of Living Compared to National Average | 23.3%⬇️ |
| 🏡 Median Home Price | $158,440 |
| 💲 Median Rent | $1000 |
| 🖼️ Known For | Talladega Superspeedway |
Talladega is indeed one of the best places to live in Alabama, with a median home price of $158,440. The annual expenditure on food for an individual amounts to $3,808. This makes it one of the most budget-friendly options across the country.
This makes it a secure place to live. Also, the city provides employment opportunities for its residents. There are top two employers such as Nhb Industries Inc and Coosa Valley Electric Cooperative offers job in the city.
» Homes for Sale in Talladega, AL: Find affordable and cheap houses in Alabama.
8. Homewood
| 🟢 Cost of Living Compared to National Average | 13%⬇️ |
| 🏡 Median Home Price | $517,931 |
| 💲 Median Rent | $1,750 |
| 🖼️ Known For |
Homewood offers an affordable housing in Alabama, with costs 13% lower than the national average. Transportation expenses are also notably cheaper, at 17.8% below the national benchmark.
The city also has a booming job market, it is home to big employers like Homewood Schools and Era King Real Estate. Over the years, Homewood’s economy has flourished in sectors like education, real estate, advanced manufacturing, and retail marketing. This leads to more jobs in the area.
» Homes for Sale in Homewood, AL: Search homes in cheapest city to live in Alabama.
9. Dothan
| 🟢 Cost of Living Compared to National Average | 19.6%⬇️ |
| 🏡 Median Home Price | $195,782 |
| 💲 Median Rent | $1,300 |
| 🖼️ Known For |
Dothan offers affordable housing options with monthly rents ranging from $375 to $3,350. The city’s average household income of $53,704 makes it a comfortable place to live.
Dothan’s growing job market, with a 16.3% growth rate, is fueled by major companies like AAA Cooper Transportation and The Cochran Firm, providing opportunities in transportation and law sectors.
» Homes for Sale in Dothan, AL: Browse affordable properties in cheapest cities to live in Alabama.
10. Tuscaloosa
| 🟢 Cost of Living Compared to National Average | 11.4%⬇️ |
| 🏡 Median Home Price | $221,294 |
| 💲 Median Rent | $1,425 |
| 🖼️ Known For |
The median home value in Tuscaloosa sits around $221,294, with rent generally falling between $495 – $5,600. The cost of living in the city is 11.4% lower than state average. Tuscaloosa’s grocery costs are also 4.4% cheaper makes it one of the cheapest cities to live in Connecticut.
Tuscaloosa offers a robust job market, with major employers like Phifer Incorporated and Peco Foods leading the way. These companies provide a variety of employment opportunities for job seekers in the area.
» Homes for Sale in Tuscaloosa, AL: Find cheap places to live in Alabama.
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The Bottom Line
The cost of living in Alabama is 12% lower than the national average. Nevertheless, it is also home to some of the most expensive cities in America. However, if you want to shift to Alabama, you can find affordable housing in cities like Selma, Gadsden, and Bessemer.
Cities like Tuscaloosa and Homewood have a slightly expensive cost of living but provide better job opportunities. You must research the city’s home prices and living costs before relocating.
» Free Home Value Estimator: Get an estimate of property values with Alabama’s most accurate home value estimator.
Find Homes for Sale in AL Under Your Specific Budget
» Best Rental Websites in America: Can’t find your dream home within your budget? Explore thousands of listings on the nation’s top rental websites.
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Research Methodology
We’ve created this list by considering factors such as cost of living, median home price, and rental price range. We have also accounted for the population, median household income, poverty rate, and unemployment rate in these cities.
To compile this list of the cheapest areas to live in Alabama, we have drawn data from the Economic Research Institute, World Population Review, Rent Cafe, and Zillow, Best Places.
FAQs
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 the cheapest place to live in?
No, it is not. The median home value is $232,529. 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.
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