5 affordable places to live in Alabama
We scoured local statistics to help you find the Alabama cities easiest on your wallet. If you're looking for an affordable place to purchase your Alabama home, here are five places in Alabama with a low cost of living.
1. Montgomery
Montgomery is not only Alabama's most affordable city, but it also has the ninth-lowest cost of living of any city in America, according to Niche. The median home value in the area is just $119,600, and 55% of residents own their own home. The city is affordable for homeowners not just because home values are well below the national median value of $184,700, but also because property taxes average just 0.36% of a property's assessed fair market value -- one of the lowest in the country.
2. Birmingham
This city of 212,000 is also known for its affordability. Niche notes the median home value in this area is just $89,200. While its property tax rate is a little higher, averaging 0.58% of a property's assessed fair market value, your money stretches further if you make Birmingham your home. According to AL.com, home prices, groceries, transportation, and healthcare costs here are below the national average.
3. Huntsville
Huntsville is another Alabama city with more owners than renters, with 58% of residents owning their own home. And it's no wonder, as Huntsville was not only ranked 20th on Niche's listing of cities with the lowest cost of living, but was also named the ninth-best city to buy a house in America out of 228 ranked locations. The city, which has a median home value of $176,100, is the county seat of Madison, where property taxes average 0.43% of a property's fair market value. It also stretches into Limestone County, where taxes average an even more affordable 0.31%.
4. Mobile
Mobile comes in at No. 30 on Niche's list of America's most affordable cities. The median home value in the area is just $121,700, which helps explain why 54% of residents are owners rather than renters. Mobile also has one of the country's lowest property tax rates, collecting an average of just 0.5% of the assessed fair market value of each property.
5. Gadsen
Although not classified as a city, Gadsen is one of Alabama's most affordable towns. Among its 35,624 residents, around 60% are homeowners -- which makes sense given that the area's median home value is just $72,400. Gadsen was also named by Niche as the third-best place to live in Etowah County -- a county where property taxes are just 0.38% of assessed value of local homes.
Choosing an affordable home will allow you to borrow less and keep your monthly payments down. You can also keep costs low by shopping among multiple lenders for the best mortgage rates in Alabama to see which provides the best deal for you. Our mortgage calculator can help you estimate your monthly payment, including principal, interest, insurance, taxes, and PMI.
