Where Alabama’s Household Expenses are the Highest in 2022
How does living in the Yellowhammer state affect your wallet? doxo breaks down key insights about Alabama’s household expenses, with a close eye to how bills differ in towns and cities across the state. The average household in Alabama, doxo’s data reveals, pays $1,688 in bills per month.
doxo’s data also has infographics for 78 cities and towns across Alabama, breaking down localized bill pay data figures as well. The state-wide rankings for most and least expensive cities provide insight into cost of living in Alabama and how it changes according to location.
The data sheds light on Alabama’s cost of living through other metrics, too. For example, the “percent of household income” data point shows what percentage of household income local residents spend on bills. doxo’s data also indicates how much more or less expensive specific cities are than the national and state average.
Alabama residents pay $1,688 in household bills a month
The average Alabama household pays $1,688 a month for the 10 most common household bills. This figure takes into account the 10 most common household bills, which are:Mortgage; Rent; Auto Loan; Utilities (electric, gas, water & sewer, and waste & recycling); Auto Insurance; Cable & Internet & Phone, Health Insurance (consumer paid portion); Mobile Phone; Alarm & Security; and Life Insurance.
Alabama residents, overall, get a good deal on their bills: the state ranks 42nd out of 50 states in terms of average monthly spending. Nebraska ranks 41st, with annual monthly expenses of $1,696, and New Mexico ranks 43rd, at $1,663.
Alabama’s household expenses, on average, are 15.7% lower than the national average of $2,003.
Absolute dollar amounts don’t tell the full story, however. The “percentage of household income” metric provides a more proportional look at bill spending in a particular location. Alabama households spend 41% of their income on household bills. For comparison, New Jersey is the 3rd most expensive state and Alaska is the 4th most expensive, but Alaskans spend 37.5% of their income on bills, while New Jersey residents spend only 35.4%. Still, Alabama residents spend more than both groups on bills, at 41% of household income.
Annually, Alabama residents pay $38 billion in household bills. See more data about bill pay in Alabama by clicking on the infographic link below.
Data: doxoINSIGHTS’ bill pay infographic about Alabama
- Average Bill Cost per HH: $1,688 per month
- State Bill Pay Market Size: $38 billion
- doxoINSIGHTS State Rank: 42 out of 50
- Percent of HHI Used for Bills: 41%
- Difference from the National Average: 15.7% lower
Housing bill category drives Alabama’s low monthly bill expenses
The average Alabama household pays $1,688 in the 10 most common household bills per month. Rent and mortgage expenses drive savings, with both being considerably lower than the national average. The average mortgage payment in Alabama is $922, and average rent is $790, compared to the national average mortgage bill of $1,368 and rent bill of $1,129.
Other than housing-related expenses, auto loans are the most significant of the 10 most common bills for Alabamians. Still, these expenses are still lower than the national average. The average auto loan bill in Alabama is $420 a month, compared to the national average of $433.
Compared to the national average, utilities are also a notably higher expense for residents of Alabama. The average household in the state pays $369 a month for utilities, compared to the national average of $328.
Auto insurance, by contrast, is more affordable in Alabama. While US residents on average spend $196 per month on car insurance, in Alabama they spend just $151.
Note: Health Insurance and Life Insurance expenses do not account for payments made by employers on behalf of employees. These just include out-of-pocket expenses. Also, the state and national bill totals take into account the percentage of households that pay a bill.
Average Alabama Household Bill Spending
| Bill Category | Average Alabama Monthly Bill | National Average Monthly Bill | Alabama Percent +/- National Average ($2,003) |
| Mortgage | $922 | $1,368 | 33% lower |
| Rent | $790 | $1,129 | 30% lower |
| Auto Loan | $420 | $433 | 3% lower |
| Utilities | $369 | $328 | 13% higher |
| Auto Insurance | $151 | $196 | 23% lower |
| Cable & Internet | $114 | $114 | 0% lower |
| Health Insurance | $90 | $123 | 27% lower |
| Mobile Phone | $115 | $113 | 2% higher |
| Alarm & Security | $71 | $84 | 15% lower |
| Life Insurance | $65 | $82 | 21% lower |
| Total | $1,688 | $2,003 | 16% lower |
Daphne tops the list of most expensive cities for Alabama’s household bills
Residents of Daphne pay the highest household bills in the state of Alabama, at an average of $2,286 per month. Trussville comes second in the rankings, with residents paying $2,163 on average per month.
In proportion to household income, however, Daphne’s bills are costlier than ones in Trussville. While Daphne’s monthly bill basket makes up 35% of average household income there, Trussville’s bill basket accounts for just 30% of average household income in that area.
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 (1-10 out of 78) | City | Monthly Bill Expenses Per Household* | Percent of Household Income Used for Bills |
| 1 | Daphne | $2,286 | 35% |
| 2 | Trussville | $2,163 | 30% |
| 3 | Warrior | $2,081 | 42% |
| 4 | Owens Cross Roads | $2,060 | 22% |
| 5 | Helena | $2,036 | 28% |
| 6 | Fairhope | $2,014 | 36% |
| 7 | Tuscaloosa | $2,006 | 49% |
| 8 | Birmingham | $2,005 | 41% |
| 9 | Pelham | $1,990 | 32% |
| 10 | Alabaster | $1,966 | 32% |
*Household Bill Pay Expense averages shown above reflect the ten most common bills paid, including housing (rent/mortgage).
Urban centers in Alabama are not as expensive as one may expect. While Tuscaloosa and Birmingham are both on the list of the 10 costliest cities for Alabama’s household expenses, neither is in the top 5. Meanwhile, Mobile and Montgomery are only 16th and 31st, respectively, in terms of average monthly bills, with residents paying $1,856 and $1,692 per month each.
Piedmont is the most affordable Alabama city for household bills
Out of 78 cities and towns, Piedmont is the most affordable place in Alabama, with residents paying $1,217 on average for household bills. Household bills account for 38% of local income in Piedmont.
Cullman comes in at the second most affordable town or city in Alabama, with residents paying $1,312 per month on average.
Also on the list of 10 least expensive cities in Alabama are Selma ($1,423 per month), Scottsboro ($1,322 per month), and Jacksonville ($1,437 per month).
10 Most Affordable Alabama Cities for Household Bills
| Rank (69-78 out of 78) | City | Monthly Bill Expenses Per Household | Percent of Household Income Used for Bills |
| 69 | Jacksonville | $1,437 | 35% |
| 70 | Greenville | $1,431 | 44% |
| 71 | Selma | $1,423 | 54% |
| 72 | Anniston | $1,381 | 40% |
| 73 | Russellville | $1,353 | 39% |
| 74 | Albertville | $1,328 | 41% |
| 75 | Arab | $1,323 | 36% |
| 76 | Scottsboro | $1,322 | 38% |
| 77 | Cullman | $1,312 | 35% |
| 78 | Piedmont | $1,217 | 38% |
In the wake of the rise of remote work, some individuals may be deciding whether to move from a more expensive city to a less expensive one. Alabama, in particular, is a hotspot for many people looking to relocate, with it being one of several states incentivizing remote workers to move there. doxoINSIGHTS can be a valuable resource for consumers seeking to make key decisions like this, allowing them to compare Alabama’s household expenses against average bills in different cities and states across the country. They can also use doxoINSIGHTS’ regional bill comparison database to compare average costs for over 900 towns and cities across the country.