Dothan, AL, US
The Peanut Capital of Alabama with a growing healthcare sector and low cost of living.
Below Average vs US Avg (100)
Affordable
Household income
Job market health
Dothan vs US Average
Taxes
- State Income Tax: 5.0%
- Sales Tax: 10.0%
Economy & Jobs
- Median Income: $48,000
- Unemployment: 3.5%
- Population: 71,000
Climate
- Sunny Days: 218/year
- Summer High: 92°F
- Winter Low: 40°F
Housing
- Median Home: $200,000
- 1BR Rent: $900/mo
Cost of Living
Dothan's cost of living index is 85 (US average = 100).
| Category | Dothan | National Average | Difference |
|---|---|---|---|
| Overall | 85 | 100 | -15.0% |
| Housing | 88 | 100 | -12.0% |
Data source: Council for Community and Economic Research (C2ER), 2026
Housing Market
| Metric | Value |
|---|---|
| Median Home Price | $200,000 |
| Median Rent (1BR) | $900/mo |
| Median Rent (2BR) | $1,125/mo |
| Price per Sq Ft | $133 |
Data source: Zillow Research, 2026
True Cost of Home Ownership
Utilities
Estimated monthly utility costs for a typical household in Dothan:
| Utility | Estimated Monthly Cost | Notes |
|---|---|---|
| Electricity | $110 | Based on ~900 kWh/month typical US household usage |
| Heating & Cooling | $4 | Estimated based on local climate. Gas or electric |
| Cooling (AC) | $7 | Estimated based on local climate and electricity rates |
| Water | $55 | Includes sewer |
| Internet (100+ Mbps) | $60 | Broadband average |
| Garbage / Trash | $25 | Private service |
| Total Utilities | $261 | Monthly estimate (including heating & cooling) |
Data sources: U.S. Energy Information Administration (EIA) 2024, EPA/AWWA water rate surveys, BroadbandNow
Best Neighborhoods
Downtown Dothan
The heart of the city with restaurants, shops, and entertainment. Average rent: $1,080/mo.
Dothan Heights
Trendy area with local businesses and a mix of historic and modern housing. Average rent: $990/mo.
East Dothan
Up-and-coming neighborhood with new developments and young professionals. Average rent: $810/mo.
West Dothan
Family-friendly area with parks and good schools. Average rent: $855/mo.
Remote Work Score
Dothan scores —/100 for remote work readiness:
Climate
Dothan has a varied climate with distinct seasons.
| Month | Avg High | Avg Low | Rainfall |
|---|---|---|---|
| January | 60°F | 40°F | 2.5" |
| April | 77°F | 55°F | 2.8" |
| July | 92°F | 67°F | 1.5" |
| October | 72°F | 58°F | 2.2" |
Taxes
- State Income Tax: 5%
- Sales Tax: 10%
- Property Tax: ~0.4% of assessed value
Economy & Jobs
Major industries include technology, healthcare, education, and manufacturing. The unemployment rate is 3.5%.
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 Dothan, AL, US?
The cost of living index in Dothan is 85, which is Lower the US national average of 100.
How much does it cost to buy a home in Dothan?
The median home price in Dothan is $200,000. The housing index is 88.
What is the average rent for a 1-bedroom apartment?
The average rent for a 1-bedroom apartment in Dothan is approximately $900/mo.
Does Dothan, AL have income tax?
Dothan is in AL, which has an income tax rate of 5%.
What is the climate like in Dothan?
Dothan enjoys approximately 218 sunny days per year. Summer highs reach around 92°F, while winter lows can drop to around 40°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
- Utilities U.S. Energy Information Administration (EIA) 2024, EPA/AWWA water rate surveys, BroadbandNow
Data last updated: July 19, 2026. Data may not reflect current market conditions. Always verify with local sources before making relocation decisions.