Skyline of Birmingham
Cost of Living: 90.5 200,733

Birmingham, AL, US

Magic City with civil rights history, medical centers, and very affordable Southern living.

Updated July 6, 2026
Cost of Living 90.5

Below Average vs US avg (100)

Housing Index 78.5

Affordable

Median Income $42,000

Household income

Unemployment 3.8%

Job market health

Birmingham vs US Average

Cost of Living
Birmingham: 90.5
US Avg: 100
Housing Index
Birmingham: 78.5
US Avg: 100
State Income Tax
Birmingham: 5%
US Avg: ~5%

Taxes

  • State Income Tax: 5.0%
  • Sales Tax: 10.0%

Economy & Jobs

  • Median Income: $42,000
  • Unemployment: 3.8%
  • Population: 200,733

Climate

  • Sunny Days: 213/year
  • Summer High: 90°F
  • Winter Low: 33°F

Housing

  • Median Home: $175,000
  • 1BR Rent: $1050/mo

Cost of Living

Birmingham's cost of living index is 90.5 (US average = 100).

CategoryBirminghamNational AverageDifference
Overall90.5100-9.5%
Housing78.5100-21.5%

Data source: Council for Community and Economic Research (C2ER), 2026

Housing Market

MetricValue
Median Home Price$175,000
Median Rent (1BR)$1050/mo
Median Rent (2BR)$1,313/mo
Price per Sq Ft$116

Data source: Zillow Research, May 2026

True Cost of Home Ownership

True Cost of Home Ownership

See what you'll really pay over 30 years

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$90,000 down
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Utilities

Estimated monthly utility costs for a typical household in Birmingham:

UtilityEstimated Monthly CostNotes
Electricity$110Based on ~900 kWh/month typical US household usage
Heating (Gas/Oil)$267Estimated based on local climate. Gas or electric
Water$45Includes sewer
Internet (100+ Mbps)$60Broadband average
Garbage / Trash$25Private service
Total Utilities$507Monthly estimate (including heating)

Data sources: U.S. Energy Information Administration (EIA) 2024, EPA/AWWA water rate surveys, BroadbandNow

Best Neighborhoods

Downtown Birmingham

The heart of the city with restaurants, shops, and entertainment. Average rent: $1,260/mo.

Birmingham Heights

Trendy area with local businesses and a mix of historic and modern housing. Average rent: $1,155/mo.

East Birmingham

Up-and-coming neighborhood with new developments and young professionals. Average rent: $945/mo.

West Birmingham

Family-friendly area with parks and good schools. Average rent: $998/mo.

Remote Work Score

Birmingham scores 124/100 for remote work readiness:

  • Internet Speed: Average 200 Mbps (Good)
  • Coworking Spaces: 15+ locations (Good)
  • Cost of Living: Good
  • Climate: 213 year (Good)
  • Quality of Life: Good

Climate

Birmingham has a varied climate with distinct seasons.

MonthAvg HighAvg LowRainfall
January53°F33°F2.5"
April75°F48°F2.8"
July90°F65°F1.5"
October70°F51°F2.2"

Taxes

  • State Income Tax: 5%
  • Sales Tax: 10%
  • Property Tax: ~0.67% of assessed value

Economy & Jobs

Major industries include technology, healthcare, education, and manufacturing. The unemployment rate is 3.8%.

Important Disclaimer: All data on this page is for informational purposes only and does not constitute financial, legal, tax, or real estate advice. URCity and Northshore Press are not financial advisors, tax professionals, or real estate agents. Always consult qualified professionals before making relocation or financial decisions.

Frequently Asked Questions

What is the cost of living in Birmingham, AL, US?

The cost of living index in Birmingham is 90.5, which is Lower the US national average of 100.

How much does it cost to buy a home in Birmingham?

The median home price in Birmingham is $175,000. The housing index is 78.5.

What is the average rent for a 1-bedroom apartment?

The average rent for a 1-bedroom apartment in Birmingham is approximately $1050/mo.

Does Birmingham, AL have income tax?

Birmingham is in AL, which has an income tax rate of 5%.

What is the climate like in Birmingham?

Birmingham enjoys approximately 213 sunny days per year. Summer highs reach around <no value>°F,90°F, while winter lows can drop to around <no value>°F.33°F.

Data Sources

  • Cost of Living: Council for Community and Economic Research (C2ER), 2026
  • Housing Data: Zillow Research, 2026
  • Income & Employment: US Census Bureau American Community Survey, 2024

Data last updated: July 6, 2026. Data may not reflect current market conditions. Always verify with local sources before making relocation decisions.