11 Most Affordable Places to Live in Alabama in 2024

With its Southern comfort food, Gulf Coast beaches, historical significance, music heritage, and welcoming communities, there are plenty of reasons to live in Alabama. If you’re considering moving to Alabama then chances are you also have a budget you’re hoping to stay under in your home or apartment search. When it comes to buying a home in Alabama the median home sale price is $288,900. 

If that price is out of your budget, don’t worry, we’ve got options to help you find a home. Redfin has collected 11 of the most affordable places to live in Alabama. And the best part is that they all have a median home sale price under $288,900. From Montgomery to Birmingham, let’s jump in and see what cities are on the list.

#1: Gadsden

Median home price: $135,000
Average sale price per square foot: $74 
Average rent for a 1-bedroom apartment: $625 
Median household income: $35,776 
Nearest major metro: Birmingham (60 miles)
Gadsden, AL homes for sale
Gadsden, AL apartments for rent

With a median home sale price of $135,000, Gadsden is the most affordable place to live in Alabama. About 60 miles northeast of Birmingham, the nearest major metro, Gadsden is home to roughly 33,900 people. If you’re considering moving to this area make sure to explore Noccalula Falls Park, golf at one of the courses, or explore the downtown Gadsden area.

#2: Montgomery

Median home price: $192,500
Average sale price per square foot: $107
Average rent for a 1-bedroom apartment: $775
Median household income: $49,989
Montgomery, AL homes for sale
Montgomery, AL apartments for rent

Coming in as the second most affordable place to live in Alabama is Montgomery. When living in this city of 200,600 people, you can visit the Alabama State Capitol building and explore Montgomery Zoo & Mann Wildlife Learning Museum. Discover some of the other historical museums located throughout Montgomery like the Rosa Parks Museum, The Legacy Museum, and the Freedom Rides Museum.

#3: Mobile

Median home price: $193,000
Average sale price per square foot: $105
Average rent for a 1-bedroom apartment: $852
Median household income: $48,524
Mobile, AL homes for sale
Mobile, AL apartments for rent

Home to about 182,500 residents, Mobile takes the third spot on our list. Located on Alabama’s Gulf Coast, there are plenty of stunning waterfront views. Mobile has a lot to explore, from museums like USS ALABAMA Battleship Memorial Park, the Mobile Carnival Museum, and the GulfQuest National Maritime Museum of the Gulf of Mexico to parks like Cooper Riverside Park and the Mobile Botanical Gardens. 

#4: Bessemer

Median home price: $200,000
Average sale price per square foot: $117
Median household income: $49,989
Nearest major metro: Birmingham (15 miles)
Bessemer, AL homes for sale
Bessemer, AL apartments for rent

A little more expensive than Mobile is the city of Bessemer, located just 15 miles southeast of Birmingham. With a population close to 26,000, there’s still plenty to do in this city. Plan to visit Alabama Adventure & Splash Adventure during the sunny summer months and check out the downtown area.

#5: Birmingham

Median home price: $217,000
Average sale price per square foot: $156
Average rent for a 1-bedroom apartment: $775
Median household income: $39,403
Birmingham, AL homes for sale
Birmingham, AL apartments for rent

About 200,700 people live in Birmingham. The median home sale price is $217,000 which is about $70K less than the median home sale price in Alabama. If you find yourself moving here, make sure to visit museums like Birmingham Civil Rights Institute and Birmingham Museum of Art and explore the gorgeous Birmingham Botanical Gardens. You can also take in the scenic views at Vulcan Park and Museum or stroll along the trails at Railroad Park. 

#6: Florence

Median home price: $226,000
Average sale price per square foot: $137
Average rent for a 1-bedroom apartment: $675
Median household income: $47,048
Nearest major metro: Huntsville (73 miles)
Florence, AL homes for sale
Florence, AL apartments for rent

Located along the Tennessee River is the charming city of Florence. With about 42,400 residents, this area has a small-town feeling. The city is home to a variety of landmarks like the Florence Indian Mound and Museum, the Old Railroad Bridge, and Pope’s Tavern Museum. You can also explore the gorgeous green spaces like McFarland Park, Shoal Creek Preserve, and Rock Springs Nature Trail, making it an awesome area for those who enjoy the outdoors. It’s also one of the best lake towns in Alabama.

#7: Phenix City

Median home price: $235,000
Average sale price per square foot: $136
Average rent for a 1-bedroom apartment: $857
Median household income: $43,296
Nearest major metro: Columbus, GA (5 miles)
Phenix City, AL homes for sale
Phenix City, AL apartments for rent

The seventh city on our list is Phenix City, located along the Alabama-Georgia border. This city has a population of 38,800 and you can grab a bite at one of the local restaurants, visit one of the parks like Moon Lake, or drive over to nearby Columbus, GA. There’s always something to check out while living in Phenix City.

#8: Decatur

Median home price: $248,156
Average sale price per square foot: $142
Average rent for a 1-bedroom apartment: $749
Median household income: $52,539
Nearest major metro: Huntsville (25 miles)
Decatur, AL homes for sale
Decatur, AL apartments for rent

If you’ve lived in Alabama for a while, it’s likely you know of Decatur. About 57,900 people reside in Decatur. Be sure to explore the expansive Wheeler National Wildlife Refuge, visit museums like Old State Bank and the Cook Museum of Natural Science, or check out the downtown area once living in Decatur.

#9: Dothan

Median home price: $250,500
Average sale price per square foot: $135
Average rent for a 1-bedroom apartment: $954
Median household income: $53,704
Dothan, AL homes for sale
Dothan, AL apartments for rent

Another great place to consider living in Alabama is Dothan where the population is about 71,200. Popular things to do in Dothan include exploring the Wiregrass Museum of Art, seeing a show at Dothan Civic Center Arena, enjoying a meal at one of the local restaurants or cafes, and hiking along the trails at Forever Wild Trails.

#10: Tuscaloosa

Median home price: $252,500
Average sale price per square foot: $196
Average rent for a 1-bedroom apartment: $865
Median household income: $44,880
Nearest major metro: Birmingham (60 miles)
Tuscaloosa, AL homes for sale
Tuscaloosa, AL apartments for rent

Next on our list of affordable places to live in Alabama is Tuscaloosa. With a population of close to 99,600, living in Tuscaloosa is a great option for those looking for a mid-sized city to call home. If you find yourself moving to this city make sure to spend the day at Lake Tuscaloosa, watch a show at Tuscaloosa Amphitheater, walk along the Tuscaloosa Riverwalk, or explore the museums and campus grounds at the University of Alabama.

#11: Enterprise

Median home price: $261,372
Average sale price per square foot: $135
Average rent for a 1-bedroom apartment: $625
Median household income: $49,989
Nearest major metro: Dothan (30 miles)
Enterprise, AL homes for sale
Enterprise, AL apartments for rent

Another great affordable city to consider moving to is Enterprise. With 30,000 residents, moving to this affordable city gives you the perks of city-life without living in a major metropolitan area. Living in Enterprise, you can spend the afternoon at Johnny Henderson Park, and check out the downtown area.

Methodology: All cities must have over 25,000 residents per the US Census and have a median home sale price under the average median home sale price in Alabama. Median home sale price and median sale price per square foot from the Redfin Data Center during July 2024. Average rental data from Rent.com August 2023. Population and median household income data sourced from the United States Census Bureau.

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