Cost of Living in Alabama: Cities where Household Expenses are Highest and Lowest in 2024
What is the cost of living in Alabama? doxo breaks down key insights about Alabama’s household expenses, with a close look into how bills differ between towns and cities across the state.
According to doxo’s The Cost of Bills Index™ (COBI), the average household in Alabama pays $1,831 in monthly expenses. doxoINSIGHTS compares the cost of the ten most common household bills across different regions. This includes Utilities, Cable & Phone, Mobile Phone, Auto Loans, Auto Insurance, Life Insurance, Health Insurance, Alarm & Security, Rent, and Mortgage.
The data sheds light on Alabama’s cost of living through other metrics as well. For example, the “percent of household income” data point shows what percentage of their household income residents spend on bills each month.
By leveraging these tools, residents can gain a clearer understanding of their household expenses and optimize their financial planning.
Alabama ranks as the 44th most expensive state in the US for household bills
According to doxo’s COBI report, Alabama is ranked as the 44th most expensive state in the U.S. for household bills, making it the least expensive state for these expenses.
At $21,968 per year, Alabama’s household expenses, on average, are 14% lower than the US average of $25,513.
Absolute dollar amounts don’t tell the full story, however. doxo’s “Percentage of Household Income” data provides a more proportional look at bill spending in a particular location. Alabama households spend 36% of their income on bills.
COBI helps consumers understand how much it costs to live in one area as compared to another as it relates to the most common household bills. For COBI, the number 100 represents the national average and then, states, counties and cities are assigned a number, either above or below 100, based on how they compare to the national average. The COBI for Alabama is 86.
- Average Bill Cost per Household: $1,831 per month
- Cost of Bills Index(COBI): 86
- doxoINSIGHTS State Rank: #44
- Percent of Household Income Used for Bills: 36%
- Compared to the National Average: 14% lower
Alabama Household Expenses are 14% Lower Than the National Average
The average Alabama household pays $1,831 per month in the 10 most common household bills. The least expensive of these are alarm and security bills.
On the lowest end of the spectrum, the average monthly payment for alarm and security bills in Alabama is $66, compared to the national average of $85, making it approximately 25% higher than the average.
Monthly mortgage bills are the most significant of the 10 most common bills for Alabama residents. The average monthly mortgage payment is $1,053, compared to the national average of $1,402, making it 28% less expensive.
Average Alabama Household Bill Spending
| Bill Category | Average Alabama Monthly Bill | National Average Monthly Bill | Alabama Percent +/- National Average ($2,126) |
| Mortgage | $1,053 | $1,402 | 28% lower |
| Rent | $942 | $1,300 | 32% lower |
| Auto Loan | $480 | $496 | 3% lower |
| Utilities | $402 | $362 | 10% higher |
| Auto Insurance | $164 | $209 | 24% lower |
| Health Insurance | $96 | $114 | 17% lower |
| Mobile Phone | $126 | $121 | 4% higher |
| Cable & Internet | $120 | $122 | 2% lower |
| Life Insurance | $71 | $87 | 20% lower |
| Alarm & Security | $66 | $85 | 25% lower |
| Total | $1,831 | $2,126 | 15% lower |
*Household Bill Pay Expense averages shown above reflect the ten most common bills paid, including housing (rent/mortgage).
Trussville has the highest cost of living in Alabama for household bills
Residents of Trussville pay the highest household bills in the state of Alabama, at an average of $2,382 per month. The Cost of Bills Index (COBI) for Trussville is 112, meaning the average cost of bills in this city is 12% higher than the national average.
In proportion to household income, monthly bills in Trussville make up 25% of the average annual household income of $114,483.
Access detailed infographics about each city or town by clicking on the hyperlinks in the “City” column in the tables below. You can also browse doxoINSIGHTS’ regional bill comparison database to see infographics about more than 4,200 cities and towns across all 50 states in the US.
10 Most Expensive Alabama Cities for Household Bills
| Rank | City | Average Income | Monthly Bill Expenses Per Household | Cost of Bills Index (COBI) – Standard | % +/- Than the National Average | Percent of Household Income Used for Bills |
| 1 | Trussville | $114,483 | $2,382 | 112 | 12% higher | 25% |
| 2 | Owens Cross Raods | $122,929 | $2,328 | 109 | 9% higher | 23% |
| 3 | Madison | $109,767 | $2,281 | 107 | 7% higher | 25% |
| 4 | Tuscaloosa | $54,985 | $2,256 | 106 | 6% higher | 49% |
| 5 | Birmingham | $71,573 | $2,214 | 104 | 4% higher | 37% |
| 6 | Calera | $72,472 | $2,181 | 103 | 3% higher | 36% |
| 7 | Mc Calla | $81,162 | $2,157 | 101 | 1% higher | 32% |
| 8 | Auburn | $51,696 | $2,148 | 101 | 1% higher | 50% |
| 9 | Helena | $106,660 | $2,133 | 100 | The same | 24% |
| 10 | Northport | $79,101 | $2,130 | 100 | The same | 32% |
*Household Bill Pay Expense averages shown above reflect the ten most common bills paid, including housing (rent/mortgage).
Russellville has the lowest cost of living in Alabama for household bills
Out of 93 cities, Russellville is the most affordable place in Alabama, with residents paying $1,356 on average for household bills, accounting for 34% of annual income of $48,447. The Cost of Bills Index (COBI) for Russellville is 64, meaning the average cost of bills in this city is 36% below the national average.
Ozark is the second most affordable city in Alabama, with residents paying $1,414 per month on average.
Also on the list of the 10 least expensive cities in Alabama are Piedmont ($1,432), Moulton ($1,439) and Bay Minette ($1,473).
10 Most Affordable Alabama Cities for Household Bills
| Rank | City | Average Income | Monthly Bill Expense Per Household | Cost of Bills Index (COBI) – Standard | % +/- Than the National Average | Percent of Household Income Used for Bills |
| 84 | Haleyville | $48,558 | $1,517 | 71 | 29% lower | 37% |
| 85 | Scottsboro | $51,002 | $1,514 | 71 | 29% lower | 36% |
| 86 | Lanett | $46,120 | $1,499 | 70 | 30% lower | 39% |
| 87 | Hamilton | $52,454 | $1,498 | 70 | 30% lower | 34% |
| 88 | Greenville | $47,707 | $1,492 | 70 | 30% lower | 38% |
| 89 | Bay Minette | $50,147 | $1,473 | 69 | 31% lower | 35% |
| 90 | Moulton | $54,230 | $1,439 | 68 | 32% lower | 32% |
| 91 | Piedmont | $49,474 | $1,432 | 67 | 33% lower | 35% |
| 92 | Ozark | $48,654 | $1,414 | 66 | 34% lower | 35% |
| 93 | Russellville | $48,447 | $1,356 | 64 | 36% lower | 34% |
*Household Bill Pay Expense averages shown above reflect the ten most common bills paid, including housing (rent/mortgage).
Some individuals might be considering moving from a more expensive city to a less expensive one. For those making such decisions, doxoINSIGHTS can be a valuable resource. It allows consumers to compare household expenses in Alabama with average bills in various cities and states nationwide.