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Cost & Benefits

Most affordable towns in Alabama, 2026

Headland is the most affordable ranked town in Alabama. Rent, the regional price level, taxes, and electricity are 22.5% each. Gasoline is 10%. A lower score is more affordable.

Summary

120
Towns ranked in Alabama.
Headland
Number 1 in Alabama. Rent is 12.5% of income. National rank 333.
19.0%
Median rent share among ranked towns in Alabama.
0
Ranked Alabama towns in the national top 100.
Clay
Least affordable ranked town in Alabama. Rent is 32.8% of income. National rank 3550.

Gasoline

$3.954

per gallon. EIA does not publish a Alabama price. This is the Gulf Coast (PADD 3) price for the week of October 12, 2026. At 12,000 miles a year and 25 mpg, that is $1,897.92 a year for every ranked town in Alabama.

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Cost & Benefits. "2026 Most Affordable Towns Index: Alabama." October 16, 2026. https://costandbenefits.com/reports/most-affordable-towns-2026/alabama

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Benefits and taxes in Alabama

Top 25

  1. #1 in Alabama · National #333

    Headland

    Rent share 12.5% · Price level 83.8 · Score 0.238

    Median rent is $822 a month and median income is $79,063, so rent is 12.5% of income, under the 19.0% median for ranked towns in Alabama. The Dothan, AL metro price level is 83.8 (U.S. = 100). Residential electricity is 16.40 cents per kWh. Gasoline is $3.954 a gallon (Gulf Coast (PADD 3)). Among ranked U.S. towns, its lightest mark is regional price level and its heaviest mark is tax burden.

  2. #2 in Alabama · National #348

    Glencoe

    Rent share 12.9% · Price level 85.7 · Score 0.239

    Median rent is $736 a month and median income is $68,517, so rent is 12.9% of income, under the 19.0% median for ranked towns in Alabama. The Gadsden, AL metro price level is 85.7 (U.S. = 100). Residential electricity is 16.40 cents per kWh. Gasoline is $3.954 a gallon (Gulf Coast (PADD 3)). Among ranked U.S. towns, its lightest mark is regional price level and its heaviest mark is tax burden.

  3. #3 in Alabama · National #397

    Hartselle

    Rent share 12.6% · Price level 87.2 · Score 0.245

    Median rent is $804 a month and median income is $76,290, so rent is 12.6% of income, under the 19.0% median for ranked towns in Alabama. The Decatur, AL metro price level is 87.2 (U.S. = 100). Residential electricity is 16.40 cents per kWh. Gasoline is $3.954 a gallon (Gulf Coast (PADD 3)). Among ranked U.S. towns, its lightest mark is regional price level and its heaviest mark is tax burden.

  4. #4 in Alabama · National #398

    Rainsville

    Rent share 8.4% · Price level 88.8 · Score 0.245

    Median rent is $519 a month and median income is $74,046, so rent is 8.4% of income, under the 19.0% median for ranked towns in Alabama. The Alabama state price level is 88.8 (U.S. = 100). Residential electricity is 16.40 cents per kWh. Gasoline is $3.954 a gallon (Gulf Coast (PADD 3)). Among ranked U.S. towns, its lightest mark is rent share and its heaviest mark is tax burden.

  5. #5 in Alabama · National #416

    Hamilton

    Rent share 13.1% · Price level 88.8 · Score 0.248

    Median rent is $599 a month and median income is $54,871, so rent is 13.1% of income, under the 19.0% median for ranked towns in Alabama. The Alabama state price level is 88.8 (U.S. = 100). Residential electricity is 16.40 cents per kWh. Gasoline is $3.954 a gallon (Gulf Coast (PADD 3)). Among ranked U.S. towns, its lightest mark is rent share and its heaviest mark is tax burden.

  6. #6 in Alabama · National #443

    Attalla

    Rent share 15.1% · Price level 85.7 · Score 0.250

    Median rent is $743 a month and median income is $59,215, so rent is 15.1% of income, under the 19.0% median for ranked towns in Alabama. The Gadsden, AL metro price level is 85.7 (U.S. = 100). Residential electricity is 16.40 cents per kWh. Gasoline is $3.954 a gallon (Gulf Coast (PADD 3)). Among ranked U.S. towns, its lightest mark is regional price level and its heaviest mark is tax burden.

  7. #7 in Alabama · National #453

    Tuscumbia

    Rent share 15.2% · Price level 84.8 · Score 0.252

    Median rent is $748 a month and median income is $59,143, so rent is 15.2% of income, under the 19.0% median for ranked towns in Alabama. The Florence-Muscle Shoals, AL metro price level is 84.8 (U.S. = 100). Residential electricity is 16.40 cents per kWh. Gasoline is $3.954 a gallon (Gulf Coast (PADD 3)). Among ranked U.S. towns, its lightest mark is regional price level and its heaviest mark is tax burden.

  8. #8 in Alabama · National #457

    Arab

    Rent share 13.4% · Price level 88.8 · Score 0.252

    Median rent is $718 a month and median income is $64,333, so rent is 13.4% of income, under the 19.0% median for ranked towns in Alabama. The Alabama state price level is 88.8 (U.S. = 100). Residential electricity is 16.40 cents per kWh. Gasoline is $3.954 a gallon (Gulf Coast (PADD 3)). Among ranked U.S. towns, its lightest mark is rent share and its heaviest mark is tax burden.

  9. #9 in Alabama · National #483

    Russellville

    Rent share 14.1% · Price level 88.8 · Score 0.254

    Median rent is $685 a month and median income is $58,231, so rent is 14.1% of income, under the 19.0% median for ranked towns in Alabama. The Alabama state price level is 88.8 (U.S. = 100). Residential electricity is 16.40 cents per kWh. Gasoline is $3.954 a gallon (Gulf Coast (PADD 3)). Among ranked U.S. towns, its lightest mark is gasoline price and its heaviest mark is tax burden.

  10. #10 in Alabama · National #490

    Oxford

    Rent share 14.9% · Price level 85.9 · Score 0.256

    Median rent is $925 a month and median income is $74,268, so rent is 14.9% of income, under the 19.0% median for ranked towns in Alabama. The Anniston-Oxford, AL metro price level is 85.9 (U.S. = 100). Residential electricity is 16.40 cents per kWh. Gasoline is $3.954 a gallon (Gulf Coast (PADD 3)). Among ranked U.S. towns, its lightest mark is regional price level and its heaviest mark is tax burden.

  11. #11 in Alabama · National #525

    Northport

    Rent share 14.6% · Price level 87.7 · Score 0.260

    Median rent is $982 a month and median income is $80,913, so rent is 14.6% of income, under the 19.0% median for ranked towns in Alabama. The Tuscaloosa, AL metro price level is 87.7 (U.S. = 100). Residential electricity is 16.40 cents per kWh. Gasoline is $3.954 a gallon (Gulf Coast (PADD 3)). Among ranked U.S. towns, its lightest mark is regional price level and its heaviest mark is tax burden.

  12. #12 in Alabama · National #591

    Springville

    Rent share 11.9% · Price level 91.6 · Score 0.268

    Median rent is $834 a month and median income is $84,231, so rent is 11.9% of income, under the 19.0% median for ranked towns in Alabama. The Birmingham, AL metro price level is 91.6 (U.S. = 100). Residential electricity is 16.40 cents per kWh. Gasoline is $3.954 a gallon (Gulf Coast (PADD 3)). Among ranked U.S. towns, its lightest mark is rent share and its heaviest mark is tax burden.

  13. #13 in Alabama · National #604

    Muscle Shoals

    Rent share 16.3% · Price level 84.8 · Score 0.269

    Median rent is $1,029 a month and median income is $75,894, so rent is 16.3% of income, under the 19.0% median for ranked towns in Alabama. The Florence-Muscle Shoals, AL metro price level is 84.8 (U.S. = 100). Residential electricity is 16.40 cents per kWh. Gasoline is $3.954 a gallon (Gulf Coast (PADD 3)). Among ranked U.S. towns, its lightest mark is regional price level and its heaviest mark is tax burden.

  14. #14 in Alabama · National #611

    Highland Lakes

    Rent share 8.5% · Price level 91.6 · Score 0.270

    Median rent is $1,201 a month and median income is $169,361, so rent is 8.5% of income, under the 19.0% median for ranked towns in Alabama. The Birmingham, AL metro price level is 91.6 (U.S. = 100). Residential electricity is 16.40 cents per kWh. Gasoline is $3.954 a gallon (Gulf Coast (PADD 3)). Among ranked U.S. towns, its lightest mark is rent share and its heaviest mark is tax burden.

  15. #15 in Alabama · National #613

    Jasper

    Rent share 13.1% · Price level 91.6 · Score 0.270

    Median rent is $721 a month and median income is $66,238, so rent is 13.1% of income, under the 19.0% median for ranked towns in Alabama. The Birmingham, AL metro price level is 91.6 (U.S. = 100). Residential electricity is 16.40 cents per kWh. Gasoline is $3.954 a gallon (Gulf Coast (PADD 3)). Among ranked U.S. towns, its lightest mark is rent share and its heaviest mark is tax burden.

  16. #16 in Alabama · National #620

    Meadowbrook

    Rent share 11.5% · Price level 91.6 · Score 0.271

    Median rent is $1,365 a month and median income is $141,862, so rent is 11.5% of income, under the 19.0% median for ranked towns in Alabama. The Birmingham, AL metro price level is 91.6 (U.S. = 100). Residential electricity is 16.40 cents per kWh. Gasoline is $3.954 a gallon (Gulf Coast (PADD 3)). Among ranked U.S. towns, its lightest mark is rent share and its heaviest mark is tax burden.

  17. #17 in Alabama · National #633

    Satsuma

    Rent share 15.4% · Price level 88.1 · Score 0.272

    Median rent is $1,300 a month and median income is $101,042, so rent is 15.4% of income, under the 19.0% median for ranked towns in Alabama. The Mobile, AL metro price level is 88.1 (U.S. = 100). Residential electricity is 16.40 cents per kWh. Gasoline is $3.954 a gallon (Gulf Coast (PADD 3)). Among ranked U.S. towns, its lightest mark is regional price level and its heaviest mark is tax burden.

  18. #18 in Alabama · National #636

    Guntersville

    Rent share 14.9% · Price level 88.8 · Score 0.272

    Median rent is $842 a month and median income is $67,929, so rent is 14.9% of income, under the 19.0% median for ranked towns in Alabama. The Alabama state price level is 88.8 (U.S. = 100). Residential electricity is 16.40 cents per kWh. Gasoline is $3.954 a gallon (Gulf Coast (PADD 3)). Among ranked U.S. towns, its lightest mark is gasoline price and its heaviest mark is tax burden.

  19. #19 in Alabama · National #651

    Margaret

    Rent share 13.2% · Price level 91.6 · Score 0.274

    Median rent is $1,117 a month and median income is $101,802, so rent is 13.2% of income, under the 19.0% median for ranked towns in Alabama. The Birmingham, AL metro price level is 91.6 (U.S. = 100). Residential electricity is 16.40 cents per kWh. Gasoline is $3.954 a gallon (Gulf Coast (PADD 3)). Among ranked U.S. towns, its lightest mark is rent share and its heaviest mark is tax burden.

  20. #20 in Alabama · National #660

    Holtville

    Rent share 14.9% · Price level 89.7 · Score 0.275

    Median rent is $954 a month and median income is $76,652, so rent is 14.9% of income, under the 19.0% median for ranked towns in Alabama. The Montgomery, AL metro price level is 89.7 (U.S. = 100). Residential electricity is 16.40 cents per kWh. Gasoline is $3.954 a gallon (Gulf Coast (PADD 3)). Among ranked U.S. towns, its lightest mark is gasoline price and its heaviest mark is tax burden.

  21. #21 in Alabama · National #664

    Mountain Brook

    Rent share 8.7% · Price level 91.6 · Score 0.275

    Median rent is $1,456 a month and median income is $201,479, so rent is 8.7% of income, under the 19.0% median for ranked towns in Alabama. The Birmingham, AL metro price level is 91.6 (U.S. = 100). Residential electricity is 16.40 cents per kWh. Gasoline is $3.954 a gallon (Gulf Coast (PADD 3)). Among ranked U.S. towns, its lightest mark is rent share and its heaviest mark is tax burden.

  22. #22 in Alabama · National #666

    Boaz

    Rent share 16.0% · Price level 88.8 · Score 0.275

    Median rent is $663 a month and median income is $49,846, so rent is 16.0% of income, under the 19.0% median for ranked towns in Alabama. The Alabama state price level is 88.8 (U.S. = 100). Residential electricity is 16.40 cents per kWh. Gasoline is $3.954 a gallon (Gulf Coast (PADD 3)). Among ranked U.S. towns, its lightest mark is gasoline price and its heaviest mark is tax burden.

  23. #23 in Alabama · National #667

    Oneonta

    Rent share 14.2% · Price level 91.6 · Score 0.275

    Median rent is $638 a month and median income is $53,980, so rent is 14.2% of income, under the 19.0% median for ranked towns in Alabama. The Birmingham, AL metro price level is 91.6 (U.S. = 100). Residential electricity is 16.40 cents per kWh. Gasoline is $3.954 a gallon (Gulf Coast (PADD 3)). Among ranked U.S. towns, its lightest mark is gasoline price and its heaviest mark is tax burden.

  24. #24 in Alabama · National #710

    Brewton

    Rent share 16.4% · Price level 88.8 · Score 0.279

    Median rent is $695 a month and median income is $50,721, so rent is 16.4% of income, under the 19.0% median for ranked towns in Alabama. The Alabama state price level is 88.8 (U.S. = 100). Residential electricity is 16.40 cents per kWh. Gasoline is $3.954 a gallon (Gulf Coast (PADD 3)). Among ranked U.S. towns, its lightest mark is gasoline price and its heaviest mark is tax burden.

  25. #25 in Alabama · National #728

    Vestavia Hills

    Rent share 13.5% · Price level 91.6 · Score 0.281

    Median rent is $1,515 a month and median income is $134,369, so rent is 13.5% of income, under the 19.0% median for ranked towns in Alabama. The Birmingham, AL metro price level is 91.6 (U.S. = 100). Residential electricity is 16.40 cents per kWh. Gasoline is $3.954 a gallon (Gulf Coast (PADD 3)). Among ranked U.S. towns, its lightest mark is rent share and its heaviest mark is tax burden.

Least affordable 10

  1. #120 in Alabama · National #3550

    Clay

    Rent share 32.8% · Price level 91.6 · Score 0.481

    Median rent is $2,240 a month and median income is $81,920, so rent is 32.8% of income, over the 19.0% median for ranked towns in Alabama. The Birmingham, AL metro price level is 91.6 (U.S. = 100). Residential electricity is 16.40 cents per kWh. Gasoline is $3.954 a gallon (Gulf Coast (PADD 3)). Among ranked U.S. towns, its lightest mark is gasoline price and its heaviest mark is rent share.

  2. #119 in Alabama · National #3320

    Birmingham

    Rent share 28.8% · Price level 91.6 · Score 0.463

    Median rent is $1,107 a month and median income is $46,051, so rent is 28.8% of income, over the 19.0% median for ranked towns in Alabama. The Birmingham, AL metro price level is 91.6 (U.S. = 100). Residential electricity is 16.40 cents per kWh. Gasoline is $3.954 a gallon (Gulf Coast (PADD 3)). Among ranked U.S. towns, its lightest mark is gasoline price and its heaviest mark is rent share.

  3. #118 in Alabama · National #3295

    Bessemer

    Rent share 29.1% · Price level 91.6 · Score 0.462

    Median rent is $961 a month and median income is $39,613, so rent is 29.1% of income, over the 19.0% median for ranked towns in Alabama. The Birmingham, AL metro price level is 91.6 (U.S. = 100). Residential electricity is 16.40 cents per kWh. Gasoline is $3.954 a gallon (Gulf Coast (PADD 3)). Among ranked U.S. towns, its lightest mark is gasoline price and its heaviest mark is rent share.

  4. #117 in Alabama · National #3288

    Midfield

    Rent share 28.3% · Price level 91.6 · Score 0.461

    Median rent is $1,244 a month and median income is $52,755, so rent is 28.3% of income, over the 19.0% median for ranked towns in Alabama. The Birmingham, AL metro price level is 91.6 (U.S. = 100). Residential electricity is 16.40 cents per kWh. Gasoline is $3.954 a gallon (Gulf Coast (PADD 3)). Among ranked U.S. towns, its lightest mark is gasoline price and its heaviest mark is rent share.

  5. #116 in Alabama · National #3281

    Odenville

    Rent share 27.0% · Price level 91.6 · Score 0.461

    Median rent is $1,581 a month and median income is $70,296, so rent is 27.0% of income, over the 19.0% median for ranked towns in Alabama. The Birmingham, AL metro price level is 91.6 (U.S. = 100). Residential electricity is 16.40 cents per kWh. Gasoline is $3.954 a gallon (Gulf Coast (PADD 3)). Among ranked U.S. towns, its lightest mark is gasoline price and its heaviest mark is rent share.

  6. #115 in Alabama · National #3223

    Tarrant

    Rent share 28.1% · Price level 91.6 · Score 0.457

    Median rent is $985 a month and median income is $42,070, so rent is 28.1% of income, over the 19.0% median for ranked towns in Alabama. The Birmingham, AL metro price level is 91.6 (U.S. = 100). Residential electricity is 16.40 cents per kWh. Gasoline is $3.954 a gallon (Gulf Coast (PADD 3)). Among ranked U.S. towns, its lightest mark is gasoline price and its heaviest mark is rent share.

  7. #114 in Alabama · National #3166

    Gulf Shores

    Rent share 22.8% · Price level 94.7 · Score 0.453

    Median rent is $1,483 a month and median income is $78,188, so rent is 22.8% of income, over the 19.0% median for ranked towns in Alabama. The Daphne-Fairhope-Foley, AL metro price level is 94.7 (U.S. = 100). Residential electricity is 16.40 cents per kWh. Gasoline is $3.954 a gallon (Gulf Coast (PADD 3)). Among ranked U.S. towns, its lightest mark is gasoline price and its heaviest mark is rent share.

  8. #113 in Alabama · National #3079

    Center Point

    Rent share 25.9% · Price level 91.6 · Score 0.447

    Median rent is $1,218 a month and median income is $56,417, so rent is 25.9% of income, over the 19.0% median for ranked towns in Alabama. The Birmingham, AL metro price level is 91.6 (U.S. = 100). Residential electricity is 16.40 cents per kWh. Gasoline is $3.954 a gallon (Gulf Coast (PADD 3)). Among ranked U.S. towns, its lightest mark is gasoline price and its heaviest mark is rent share.

  9. #112 in Alabama · National #3050

    Foley

    Rent share 22.5% · Price level 94.7 · Score 0.445

    Median rent is $1,242 a month and median income is $66,336, so rent is 22.5% of income, over the 19.0% median for ranked towns in Alabama. The Daphne-Fairhope-Foley, AL metro price level is 94.7 (U.S. = 100). Residential electricity is 16.40 cents per kWh. Gasoline is $3.954 a gallon (Gulf Coast (PADD 3)). Among ranked U.S. towns, its lightest mark is gasoline price and its heaviest mark is rent share.

  10. #111 in Alabama · National #3030

    Prichard

    Rent share 30.2% · Price level 88.1 · Score 0.443

    Median rent is $922 a month and median income is $36,588, so rent is 30.2% of income, over the 19.0% median for ranked towns in Alabama. The Mobile, AL metro price level is 88.1 (U.S. = 100). Residential electricity is 16.40 cents per kWh. Gasoline is $3.954 a gallon (Gulf Coast (PADD 3)). Among ranked U.S. towns, its lightest mark is regional price level and its heaviest mark is rent share.

The formula

A lower score is more affordable. Rent share, the regional price level, taxes, and electricity each count 22.5%. Gasoline counts 10%. Those weights are our choice. Gasoline stays at 10% because the miles figure is one national standard, not a measured town commute. This is not a government standard.

A percentile is the share of ranked towns with a strictly lower number, divided by the number of ranked towns minus one. The lowest number scores 0. Tied numbers share a percentile.

  1. Rent share = (median monthly rent × 12) / median household income. Both figures are the Census 2020–2024 medians for that place.
  2. RPP-adjusted cost is the BEA 2024 all-items regional price parity. A basket priced at 100 for the U.S. average costs this many dollars in the town's area. We use the metro index when the county is in a metro BEA publishes. Otherwise we use the state index and say so. This index includes housing, so housing also shows up in the rent share.
  3. Tax burden is the average of three percentiles. Income-tax share is state income tax plus the stored 2023 local AGI add-on, divided by the town's median household income, on a joint return. Property share is the state's median effective property-tax rate times the town's median home value, divided by income. Sales rate is the combined state and average local sales-tax rate. We do not turn the sales rate into dollars, because that would require a shopping basket we do not have.
  4. Electricity is the state residential price in cents per kilowatt-hour. Every town in a state shares it. We do not guess how many kilowatt-hours a home uses.
  5. Gasoline is the EIA retail price for all grades and all formulations, in dollars per gallon. Where EIA publishes a state series, we use that state. Every other state uses the PADD region EIA assigns to it. Census does not publish commuting miles for these towns, so annual gas spend is 12,000 miles a year divided by 25 miles per gallon, times the price. That is 480 gallons, the same for every town. Those miles are our standard, not an ACS figure and not a government mileage rule. Because the gallons do not change, the gas percentile is the percentile of the price.

    Weekly prices are for the week of October 12, 2026, from the EIA workbook released October 14, 2026. File: https://www.eia.gov/petroleum/gasdiesel/xls/pswrgvwall.xls. Alaska, Arizona, Hawaii, Nevada, and Oregon use West Coast (PADD 5) Except California. That series is not in the weekly workbook, so those five use the monthly price dated September 15, 2026. File: https://www.eia.gov/dnav/pet/pet_pri_gnd_a_epm0_pte_dpgal_m.htm.

    • State series, week of October 12, 2026: California, Colorado, Florida, Massachusetts, Minnesota, New York, Ohio, Texas, Washington.
    • Central Atlantic (PADD 1B), week of October 12, 2026: Delaware, District of Columbia, Maryland, New Jersey, Pennsylvania.
    • Gulf Coast (PADD 3), week of October 12, 2026: Alabama, Arkansas, Louisiana, Mississippi, New Mexico.
    • Lower Atlantic (PADD 1C), week of October 12, 2026: Georgia, North Carolina, South Carolina, Virginia, West Virginia.
    • Midwest (PADD 2), week of October 12, 2026: Illinois, Indiana, Iowa, Kansas, Kentucky, Michigan, Missouri, Nebraska, North Dakota, Oklahoma, South Dakota, Tennessee, Wisconsin.
    • New England (PADD 1A), week of October 12, 2026: Connecticut, Maine, New Hampshire, Rhode Island, Vermont.
    • Rocky Mountain (PADD 4), week of October 12, 2026: Idaho, Montana, Utah, Wyoming.
    • West Coast (PADD 5) Except California, September 15, 2026: Alaska, Arizona, Hawaii, Nevada, Oregon.

Score = 0.225 × rent percentile + 0.225 × price-level percentile + 0.225 × tax score + 0.225 × electricity percentile + 0.10 × gasoline percentile. Rank 1 is the lowest score. If scores tie, the lower rent share wins, then the lower price level, then the place slug in A-to-Z order.

Questions

What is the most affordable town in Alabama in this index?

Headland is number 1 of 120 ranked towns in Alabama. Median rent is 12.5% of median income. Its national rank is 333.

How many towns in Alabama were ranked?

120 towns in Alabama have at least 5,000 people and published Census rent, income, and home value. Places missing one of those figures are left out.

Does this ranking approve benefits in Alabama?

No. Cost & Benefits does not approve or deny benefits. The score is a cost comparison only.