Southeast · Updated October 2026
Alabama in numbers, from the same public data Locustep uses to rank all 50 states: rent, pay, taxes, safety, disaster risk and weather, plus the cities worth a look.
Two-bedroom rent
$1,170/mo
U.S. average $1,759
HUD Fair Market Rents FY2027 (40th percentile, population-weighted across the state)
Rent vs. income
21.1%
of median household income for a year of two-bedroom rent
HUD Fair Market Rents FY2027 ÷ 2024 ACS 1-year estimates (Census B19013)
State income tax
5%
top marginal rate, single filer
State revenue departments, 2026 income tax rates (sources listed per state)
Property tax
0.38%
effective rate on owner-occupied homes
Everyday costs
96.6
index, housing excluded (U.S. = 100)
BEA Regional Price Parities, 2024 (released February 2026), housing and utilities removed
Natural disaster risk
57th
percentile, FEMA expected annual loss (lower is safer)
Where Alabama stands out: the 10th cheapest two-bedroom rent and the 2nd lowest property taxes among the 50 states.
What to weigh: the 10th highest natural-disaster risk and the 7th lowest median household income.
Overall, a married couple on the U.S. median household income would pay about 7.3% of it in state and local income, property and sales tax here, the 25th lowest of the 50 states.
Average afternoon highs and overnight lows in Birmingham (Birmingham Airport station), NOAA 1991–2020 normals.
| Season | High | Low |
|---|---|---|
| Winter (Dec–Feb) | 57°F | 37°F |
| Spring (Mar–May) | 75°F | 53°F |
| Summer (Jun–Aug) | 90°F | 71°F |
| Fall (Sep–Nov) | 76°F | 54°F |
$1,375/mo two-bedroom · $1,263 one-bedroom (Birmingham-Hoover, AL HUD Metro FMR Area)
Birmingham is Alabama's largest metro, a former steel city now anchored by a major medical centre, with a strong civil-rights history and a surprisingly good food scene. Very affordable, hilly and green, with sharp divides between neighbourhoods.
$1,341/mo two-bedroom · $1,177 one-bedroom (Huntsville, AL MSA)
Huntsville is an aerospace and defence engineering town built around NASA and the Army's missile command — the most educated and fastest-growing city in Alabama, with high salaries relative to a low cost of living.
$1,150/mo two-bedroom · $1,003 one-bedroom (Montgomery, AL MSA)
Montgomery is the state capital, central to civil-rights history, with government and military employment and a very low cost of living. Quieter and slower than Birmingham, with a smaller professional job market.
$1,139/mo two-bedroom · $981 one-bedroom (Mobile, AL MSA)
Mobile is a Gulf Coast port city with genuine French and Spanish colonial roots and the country's oldest Mardi Gras. Humid and hurricane-exposed, very affordable, with shipbuilding, aerospace and the port driving employment.
$1,165/mo two-bedroom · $975 one-bedroom (Tuscaloosa, AL HUD Metro FMR Area)
Tuscaloosa is a University of Alabama town where football shapes the calendar, with a Mercedes plant nearby providing industrial jobs. Cheap, young during term, and much quieter out of season.
$1,277/mo two-bedroom · $1,167 one-bedroom (Auburn-Opelika, AL HUD Metro FMR Area)
Auburn is a compact, pleasant university town in east Alabama with a strong engineering school and a football-centred social life. Low cost of living, well-kept, and heavily dependent on the university's rhythm.
$1,434/mo two-bedroom · $1,317 one-bedroom (Daphne-Fairhope-Foley, AL MSA)
Fairhope is a tidy, affluent small city on the eastern shore of Mobile Bay, with a walkable downtown and a steady flow of retirees. Hurricane exposure and insurance costs are real, and prices have risen quickly.
$1,085/mo two-bedroom · $834 one-bedroom (Florence-Muscle Shoals, AL MSA)
Florence anchors the Shoals in northwest Alabama, on the Tennessee River, with the University of North Alabama and a proud music history from nearby Muscle Shoals. Cheap, quiet and a long drive from any big airport.
Rents: HUD Fair Market Rents FY2027 (40th percentile, population-weighted across the state) (metro areas). City notes: Locustep.
Closest on Locustep’s match factors: cost, housing, taxes, safety, jobs, schools, healthcare, outdoors, disaster risk and climate.
Ranks compare the 50 states. Locustep updates these figures when the agencies publish new data.
Yes. Alabama’s top marginal income-tax rate for a single filer is 5% (Alabama tax law, 2026). Counting property and sales tax too, a married couple on the U.S. median household income would pay about 7.3% of income in state and local taxes (Locustep estimate, 2026).
A typical two-bedroom rents for about $1,170 a month and a one-bedroom for about $1,010, using HUD’s FY2027 Fair Market Rents averaged across the state by population. That is $589 less than the U.S. average of $1,759. Rent in the bigger metros can be well above the state figure.
Leaving housing aside, everyday prices (goods and services other than housing) index at 96.6 against a U.S. average of 100 (BEA, 2024), and the median home value indexes at 64.7 against the U.S. median (Census, 2024). Two-bedroom rent takes 21.1% of the state’s median household income of $66,659.
Alabama recorded 359.9 violent crimes per 100,000 residents in 2024 (FBI), the 22nd highest rate of the 50 states. Crime varies a lot between and within cities, so check the specific area you’re considering.
The main hazards are tornadoes and hurricanes. On FEMA’s National Risk Index, Alabama’s expected yearly loss from natural hazards sits at the 57th percentile nationally (lower is safer). Risk differs sharply by county, so look up the county too.
Places people most often weigh include Birmingham, Huntsville, Montgomery, Mobile and Tuscaloosa. Each has a different cost, climate and character; Locustep compares their rent, disaster risk, weather and pay side by side.