Insights » Cost of Living in Alabama: Cities where Household Expenses are Highest and Lowest in 2024

Cost of Living in Alabama: Cities where Household Expenses are Highest and Lowest in 2024

Alabama skyline

What is the cost of living in the Yellowhammer state? 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 $1,831 in bills per month.

doxo’s data also has infographics for 93 cities and towns across Alabama, breaking down localized bill pay data figures. 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 $1,831 in household bills a month

Alabama residents, overall, get a good deal on their bills: the state ranks 44th out of 50 states in terms of average monthly spending. Missouri ranks 43rd, with annual monthly expenses of $1,835, and Indiana ranks 45th, at $1,786.

Alabama’s household expenses, on average, are 13.9% lower than the national average of $2,126.

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 36% of their income on household bills.

Annually, Alabama residents pay $51 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: $1,831 per month
  • State Bill Pay Market Size: $51 billion
  • doxoINSIGHTS State Rank: 44 out of 50
  • Percent of HHI Used for Bills: 36%
  • Difference from the National Average: 13.9% lower

Housing bill category drives Alabama’s low monthly bill expenses

The average Alabama household pays $1,831 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 $1,053, and average rent is $942, compared to the national average mortgage bill of $1,402 and rent bill of $1,300.

Other than housing-related expenses, auto loans are the most significant of the 10 most common bills for Alabamians. The average auto loan bill in Alabama is $480 a month, which is less than the national average of $496.

Compared to the national average, utilities are a higher expense for residents of Alabama. The average household in the state pays $402 a month for utilities, compared to the national average of $362.

Auto insurance, by contrast, is more affordable in Alabama. While US residents on average spend $209 per month on car insurance, in Alabama they spend $164.

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 CategoryAverage Alabama Monthly BillNational Average Monthly BillAlabama Percent +/- National Average ($2,126)
Mortgage$1,053$1,40225% lower
Rent$942$1,30028% lower
Auto Loan$480$4963% lower
Utilities$402$36211% higher
Auto Insurance$164$20922% lower
Cable & Internet$120$1222% lower
Health Insurance$96$11416% lower
Mobile Phone$126$1214% higher
Alarm & Security$66$8522% lower
Life Insurance$71$8718% lower
Total$1,831$2,12613.9% lower

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. Owens Cross Roads comes second in the rankings, with residents paying $2,328 on average per month.

In proportion to household income, the monthly bill basket makes up 25% of average household income in Trussville and 23% in Owens Cross Roads.

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 93)
CityMonthly Bill Expenses Per Household*Percent of Household Income Used for Bills
1Trussville$2,38225%
2Owens Cross Roads$2,32823%
3
Madison
$2,28125%
4Tuscaloosa$2,25649%
5Birmingham$2,21437%
6
Calera
$2,181
36%
7
Mc Calla
$2,15732%
8
Auburn

$2,148

50%
9
Helena

$2,133

24%
10Northport
$2,130
32%
*Household Bill Pay Expense averages shown above reflect the ten most common bills paid, including housing (rent/mortgage).

*Household Bill Pay Expense averages shown above reflect the ten most common bills paid, including housing (rent/mortgage).

Trussville has the lowest cost of living in Alabama for household bills

Out of 93 cities and towns, Russellville is the most affordable place in Alabama, with residents paying $1,356 on average for household bills. Household bills account for 34% of local income in Russellville.

Ozark comes in at the second most affordable town or city in Alabama, with residents paying $1,414 per month on average.

Also on the list of 10 least expensive cities in Alabama are Piedmont ($1,432 per month), Moulton ($1,439 per month), and Bay Minette ($1,473 per month).

10 Most Affordable Alabama Cities for Household Bills

Rank
(84-93 out of 93)
CityMonthly Bill Expenses Per HouseholdPercent of Household Income Used for Bills
84Haleyville$1,51737%
85Scottsboro$1,51436%
86Lanett$1,49929%
87Hamilton$1,49849%
88Greenville$1,49238%
89Bay Minette$1,47335%
90Moulton$1,43932%
91Piedmont$1,43235%
92Ozark$1,41435%
93Russellville$1,35634%

Some individuals may be deciding whether to move from a more expensive city to a less expensive one, and 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 nearly 5,000 towns and cities across the country.