Cost of Living in Huntsville AL 💰 | [2025] Guide to the Huntsville Alabama Cost of Living
Moving to Huntsville and wondering how far your money will go? Known for its tech and aerospace industries, vibrant community, and close proximity to nature, Huntsville has quickly become one city gaining national attention. It’s regularly ranked among the best places to live in Alabama, and for good reason. One of the biggest draws? The relatively low cost of living in Huntsville AL.
Compared to the national average, the Huntsville Alabama cost of living is much more affordable, especially when it comes to housing, utilities, and everyday necessities. If you’re considering a new location, however, it’s always smart to look at the real data. In this guide, we’ll explore what life in Huntsville actually costs, from healthcare to expenses like groceries and gas, and break down the factors that influence prices in this growing city.
Huntsville AL Cost of Living Index
One of the best ways to understand the cost of living in Huntsville AL is to take a look at the Huntsville Alabama Cost of Living Index. The Cost of Living Index compares the cost of goods and services in a city to the national average. This includes expenses such as transportation, healthcare, food, and miscellaneous services.
According to the latest data, the Huntsville Cost of Living Index is 90.8. This means that the cost of living in Huntsville AL is 9.2% more affordable than the national average of 100. While it’s lower than the national average, it’s higher than the Alabama average of 87.6.
Consumer Price Index (CPI)
Another great way to assess the cost of living in Huntsville AL is to consider the Consumer Price Index, or CPI. The Consumer Price Index is data published by the Bureau of Labor Statistics on a monthly basis and reports the change in prices that residents are paying in a given city.
Huntsville is a part of the South Region. According to the latest CPI, it is reported that costs in Huntsville have risen 2.3% over the past 12 months, while costs have risen 0.3% over the past few months. Food prices rose 0.2%, energy prices rose 1.4%, and all other items rose 0.2%.
While prices are on the rise, it’s still important to note that expenses remain below the national average, as the South is one of the most affordable regions to live in.
Consumer Expenditure Survey
When looking at the cost of living in Huntsville AL, you can also take a look at the data in the latest Consumer Expenditure Survey. This report is also published by the Census Bureau and helps to calculate the overall CPI. According to the latest Consumer Expenditure Survey, the average annual expenditure for households in Huntsville Alabama is $67,020. This is the lowest out of any region in the United States.
Here’s how this budget breaks down (and how it compares to the national average):
- Housing: 32.7% ($29,743), compared to national average of 33.1% ($28,681)
- Transportation: 18% ($14,144), compared to national average of 16.9% ($12,991)
- Food: 12.9% ($11,037), compared to national average of 12.9% ($10,683)
- Healthcare: 8.3% ($6,187), compared to national average of 8.0% ($6,297)
- Education: 1.7% ($1,384), compared to national average of 2.0% ($2,384)
- Miscellaneous: 1.4% ($1,377), compared to national average of 1.5% ($1,257)
Family Budget in Huntsville Alabama
Are you curious about the cost of living in Huntsville AL for you and your family? According to the Economic Policy Institute cost of living calculator, a family of four living in the city would need to earn $103,349 per year to live comfortably in the area. This comes out to around $8,612. This number factors in things such as housing, transportation, and other necessary services.
Of course, your expenses will vary based on your lifestyle and what you can afford, making the cost of living in Alabama per month different for everyone. For example, a family of two with no children would only need to earn $67,904 per year.
Cost of Household Items, Utilities, Gas & Groceries in Huntsville
When considering the cost of living in Huntsville AL, you’ll want to do more than just use a cost of living calculator. Instead, you’ll want to break down everyday expenses you’ll encounter, such as electricity, groceries, internet, and more. Understanding these costs will allow you to maintain a comfortable lifestyle and stick to your budget. Here are just a few expenses that go into the cost of living in Huntsville AL.
- Steak (1 pound): $6.99
- Milk (1 gallon): $3.51
- Eggs (1 dozen): $4.26
- Potatoes (5 pounds): $8.10
- Bread (1 loaf): $3.02
- Beer (1 bottle): $6.00
- Movie ticket: $9.25
- McDonald’s meal: $10.00
- Average cell phone bill: $58.33
Source: Numbeo
You can also expect the average Huntsville utility bill to be around $180 per month, which is quite low compared to the national average.
Huntsville AL Real Estate Market
Huntsville housing costs play a big part of the cost of living in Huntsville AL. Mortgage payments, property taxes, and the ever-changing Huntsville real estate market all play into how much you’ll pay to live in the city. According to Redfin, the average home price in Huntsville AL is $346,000. The Huntsville housing market is booming, and the price of Huntsville AL homes for sale is up 6.4% compared to last year.
However, although prices are up, they are still well below the national average of $447,054. As such, housing helps to keep the cost of living in Huntsville AL low.
Curious about how this stacks up with other Alabama cities?
- Birmingham: $183,000
- Montgomery: $195,000
- Mobile: $212,000
- Tuscaloosa: $275,000
- Dothan: $260,000
Huntsville Rental Market - Average Rent in Huntsville AL
If you’re renting, this will also play into the final cost of living in Huntsville AL. According to RentCafe, the average Huntsville rent is $1,259, which is well below the national average of $1,727.
You’ll find plenty of fantastic, affordable neighborhoods in Huntsville, such as Russell Hill Estates ($773 per month), Woodway Pines ($825 per month), and Bailey Estates ($913 per month). On the other hand, the most expensive neighborhoods in the city include Brockway Place ($1,508 per month), Cambridge - Shadow Creek ($1,619 per month), and Autumn Ridge ($1,653 per month).
According to the National Low Income Housing Coalition, you would need to earn at least $49,920 per year to rent a two-bedroom apartment in Huntsville without spending over 30% of your income on housing.
Curious about whether it’s more affordable to rent or to buy in Huntsville? According to the 2022 Rental Affordability Report, it’s more affordable to buy than to rent in Huntsville.
To further answer this question, you’ll want to take a look at the price-to-rent ratio. The price-to-rent ratio analyzes whether it’s better to buy or to rent in a region. The higher the ratio, the better the city is for renters, while the lower the ratio, the better it is for buyers. To calculate this ratio, you simply need to take the median annual rent and divide it by the median home price. Let’s plug Huntsville’s numbers into the equation.
$346,000 / $15,108 = 22.9
This is considered a low price-to-rent ratio, indicating that the city is a better place to live for buyers.
Average Salary & Household Income in Huntsville Alabama
When analyzing the cost of living in Huntsville AL, you’ll want to consider the average salary and median household income. The median household income in Huntsville AL is $70,778, which is higher than the Alabama average of $62,212. This is good news because although the Huntsville Alabama cost of living is higher than the Alabama average, you’ll enjoy the extra income to even things out.
According to Payscale, the average salary in Huntsville AL is $84,000. The cost of living in Huntsville AL is quite manageable if you can get a job in the region, and there’s no shortage of options. Huntsville is the most populous city in the state of Alabama and is known for its aerospace and military technology industries. It’s a key city in rocket-propulsion research for NASA and also has various organizations run by the Army. Additionally, more than 25 biotechnology firms have developed in the city due to the Huntsville Biotech Initiative. The top employers in Huntsville include:
- US Army/Redstone Arsenal: 45,500 employees
- Huntsville Hospital: 12,160 employees
- Mazda Toyota Manufacturing USA: 4,000 employees
- The Boeing Company: 3,411 employees
- Huntsville City Schools: 3,000 employees
- Northrop Grumman Corporation: 3,000 employees
- Leidos: 2,843 employees
- SAIC: 2,746 employees
- City of Huntsville: 2,589 employees
- Madison County Schools: 2,389 employees
Income, Sales & Property Taxes in Huntsville
A major part of the cost of living in Huntsville AL are the taxes you’re responsible for paying.
Property Taxes
Huntsville property tax rates in Madison County remain notably low. The Madison County AL property taxes are generally lower than the national average and are based on the millage rates in the county. According to the Madison County Tax Estimator, if you own a home worth $346,000 (the city average), you’ll pay $4,013.60 in property taxes.
Income Taxes
Alabama imposes a state income tax with rates ranging from 2% to 5%. The first $500 (single filer) or $1,000 (joint return) is taxed at 2%, the next portion at 4%, and any taxable income over $3,000 (or $6,000 joint) is taxed at 5%. The Alabama income tax rate structure is progressive and considered modest relative to many other states.
Sales Taxes
Understanding sales tax in Huntsville Alabama is key to budgeting daily expenses. The Huntsville AL sales tax rate totals 9%, combining the Alabama sales tax rate of 4%, Madison County rate of 1.5%, andthe Huntsville city rate of 3.5%. Some essential items like groceries are taxed at a reduced 3% rate, following recent legislation that lowered food tax rates to offer relief on monthly household costs.
Huntsville vs. Birmingham Cost of Living
If you’re thinking of moving to the Huntsville area, then you may also be considering other big locations in Alabama or other towns near Huntsville. Many people who are thinking about relocating to Huntsville also have the city of Birmingham on their radar. Birmingham is the second-most populous city in the state and has a population of 200,733. It’s known as the entertainment capital of Alabama, and is full of museums, art galleries, restaurants, bars, and breweries.
But how does the cost of living in Birmingham stack up to the cost of living in Huntsville AL. Compared to Birmingham, Huntsville is a slightly more affordable place to live. The Birmingham Cost of Living Index is 91.8, making it just 1% more expensive than Huntsville. Most notably, Birmingham offers more affordable housing, with a median home price of $183,000 compared to Huntsville’s $346,000. However, everyday expenses like groceries, utilities, and transportation tend to be more affordable in Huntsville.
No matter which new city you choose to settle down in, you’ll find a relatively low cost of living. For big cities, both of these destinations have a lot to offer at an affordable price.
Get in Touch With This Side Up Moving Today
The Huntsville Alabama cost of living is manageable and affordable! Now that you know the ins and outs of the cost of living in Huntsville AL, it’s time to get started with your move. The experts at This Side Up Moving are ready to make your move smooth and stress-free, handling everything from start to finish. We’ve been in the industry for over 20 years and are ready to make your move a great one. To discuss your move and get started with a free quote, give our Huntsville movers a call at (256) 653-7612.
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