Cost of Living in Huntsville, Alabama

It’s not uncommon to hear about residents who have relocated to the area due to the low cost of living in Huntsville, Alabama. From those who are looking for an affordable place to raise their families to those who desire to stretch their finances further in retirement, the Huntsville area is known to meet the needs of both parties.

If you too have heard that a major draw to living in North Alabama is the low cost of living, we’d love to break this down further so that you understand how the cost of living compares to other areas and why it’s a tremendous reason to plant your roots in Huntsville or its surrounding areas like Madison, Athens, or Decatur. Erica DeSpain of All Things Madison joins Matt Curtis of Matt Curtis Real Estate to break down the cost of living in Huntsville and how it compares to other major cities and national averages.

Cost of Living in Huntsville, AL

According to Ramsey Solutions, Alabama is ranked as the fourth cheapest state to live in in 2023. The cost of living 12.1% lower than the national average!

From housing costs to retiree benefits to food, clothing, and more, Alabama continually ranks significantly lower than the national average. For example, says that housing in the Huntsville area is a remarkable 31% lower than the national average. Additionally, food and clothing are 5% lower than the national average, and Huntsville specifically has a healthcare cost that is 2% lower than the state average and 8% lower than the national average!

When you add all of these savings together, no wonder so many find it financially wise to call Alabama their home!

Housing Prices in Huntsville, Alabama

When it comes to rent costs, home prices, and property taxes, the Huntsville area definitely offers residents more space for less money. In early 2023, the average rent price in the Huntsville area was about $1,100 a month while the average home price was at $368,000.

Erica says, “I know personally that my family was drawn to the north Alabama area due to property taxes that were significantly lower than we had paid in other states!  We couldn’t believe how much more affordable our monthly mortgage would be thanks to lower property taxes.”

Alabama actually has the second-lowest average effective property tax rate in the country, only behind Hawaii. Alabama’s average effective property tax rate is .46%, well under the 2022 national average of 1.07%.

Retiring to North Alabama

North Alabama is also an ideal retirement location! Social security income is not taxed, and neither are private and public pensions. Additionally, anyone over the age of 65 is exempt from paying state property taxes. When you consider that the north Alabama area sees an average of 213 sunny days a year and has a comparatively warm climate, North Alabama is a retiree’s dream!

Cost of Ling in Huntsville, Alabama Compared to Other Major U.S. Cities

We researched the cost of living in Huntsville and compared it to other cities in the southeast and found that you need $4,500 to maintain the same cost of living as $6,300 in Nashville, Tennessee. That’s more than 25% more affordable! Housing costs in Huntsville versus Nashville are also a whopping 34% cheaper. says that Huntsville is nearly 6% cheaper to live in than Atlanta, Georgia, though their incomes are only roughly 2% higher.

Additionally, when we looked at the cost of living in Destin, Florida versus Huntsville, we found that the price of a comparable home is 119% more expensive!

Finally, did you know that it’s 48% cheaper to live in Huntsville than in Los Angeles, California, though the average salaries in Los Angeles are only 17% higher than those of a comparable occupation in Huntsville.

There’s no doubt about the idea that a lower cost of living allows one’s dollar to stretch further here in North Alabama, lending itself to an overall better quality of life.

To learn more about North Alabama or about the suburb of Madison specifically,  check out or connect on Facebook or Instagram.

For more resources, visit as well as a packed YouTube channel with all kinds of videos to help you make informed decisions about moving to the north Alabama area.


Posted by Matt Curtis on


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