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How much does it cost to live comfortably in Alabama?

Cost of Living in Alabama: A Guide to Comfortable Living

Alabama, known for its Southern charm and hospitality, offers a relatively low cost of living compared to many other states in the US. But what does it take to live comfortably in the Heart of Dixie?

Housing, as a significant component of living expenses, is relatively affordable in Alabama. The median home cost is around $142,700, according to the Alabama Center for Real Estate. Renters can also find good deals, with average rents for a one-bedroom apartment hovering around $800 per month.

Utilities are another consideration, and residents can expect to pay around $162 per month for basic services. This includes electricity, heating, cooling, water, and garbage disposal. Internet services add approximately $60 to monthly expenses.

Food expenses can vary, but on average, a single adult spends about $3,000 annually on groceries, as reported by the Bureau of Labor Statistics. Eating out will, of course, increase this budget.

Transportation costs depend on one’s choice of vehicle and travel frequency. The average cost of car insurance in Alabama is about $1,450 per year, with gasoline and maintenance adding to the total expense.

Healthcare in Alabama is slightly below the national average, but individuals should still budget for it. A single adult’s health insurance premium averages around $440 per month without subsidies.

To live comfortably in Alabama, a single adult would need to earn approximately $50,000 before taxes, while a family of four should aim for an income around $70,000 to cover all expenses and enjoy a decent lifestyle.


Q: What is the median home cost in Alabama?
A: The median home cost in Alabama is around $142,700.

Q: How much should a single adult budget for groceries annually?
A: A single adult should budget about $3,000 annually for groceries.

Q: What is the average cost of car insurance in Alabama?
A: The average cost of car insurance in Alabama is approximately $1,450 per year.


Median Home Cost: The middle value in the list of home prices, where half the homes are priced lower and half are priced higher.
Utilities: Basic services needed for a home to function, such as electricity, water, and waste disposal.
Health Insurance Premium: The amount paid periodically to an insurance company for health coverage.