Alabama

Alabama is about 14% cheaper than the national average. Across the 14 cities we track, the cost of living index averages 86, where 100 is the US average.

Typical rent in Alabama averages $1,339 a month across the 14 cities we track as of September 2026, 31% below the national typical rent of $1,932. That ranks the 14th lowest of 51 states. The figure is the Zillow Observed Rent Index for all home types.

Of the 14 cities we track in Alabama, Montgomery has the lowest cost of living index at 85. The lowest typical rent is in Anniston, at $965 a month.

Birmingham has the highest cost of living index of the cities we track in Alabama, at 90. The highest typical rent is in Daphne, at $1,701 a month.

Regular unleaded averages $3.59 a gallon in Alabama as of November 11, 2026 (AAA state average), 10% below the national average of $3.98. That is the 9th cheapest of 51 states.

Rent in Alabama rose an average of 2.5% over the past year across the 14 cities we track, compared with a 2.7% change nationally.

Residential electricity in Alabama averages 16.3 cents per kWh (EIA), versus 18.4 cents nationally. At 900 kWh a month, a typical bill is about $147.

Full coverage car insurance in Alabama averages $1,754 a year, or about $146 a month (Bankrate and NAIC), compared with $2,150 a year nationally. That is the 13th lowest of 51 states.