Median household income in Alabama is $63,999 and median rent is $1,007 a month, per Census 2020 to 2024 estimates. Compare at least three written offers on APR and total cost, verify the lender's license with the Alabama State Banking Department, and never pay a fee before funding.
On this page
- Alabama by the numbers
- What the numbers mean for Alabama borrowers
- Largest places in Alabama
- More Alabama cities and towns
- Counties with the most residents
- How Alabama earns a living
- More context for Alabama budgets
- Checking a lender in Alabama
- Can Alabama residents use the questionnaire?
- Local guides in Alabama
- Frequently asked questions
Alabama by the numbers
Alabama in sixteen numbers, each beside the U.S. value and a rank where 1 is the highest of 51.
| Budget measure | Alabama | U.S. | Rank of 51 |
|---|---|---|---|
| Median household income | $63,999 | $80,734 | 46th |
| Households earning under $35,000 | 28% | 21% | 6th |
| Households earning $100,000 or more | 31% | 41% | 45th |
| Poverty rate | 15.6% | 12.5% | 7th |
| Unemployment rate (ACS) | 4.7% | 5.2% | 32nd |
| Median gross rent per month | $1,007 | $1,413 | 43rd |
| Rent-burdened renters (30%+) | 49% | 51% | 25th |
| Home value, median | $209,900 | $332,700 | 45th |
| Homes owner-occupied | 70% | 65% | 14th |
| Mortgaged owners paying 30%+ on housing | 24% | 28% | 36th |
| Home value to income ratio | 3.3x | 4.1x | 36th |
| Workers commuting 45+ minutes | 15% | 17% | 23rd |
| Workers who work from home | 9% | 15% | 47th |
| Bachelor's degree or higher (age 25+) | 28% | 36% | 44th |
| Age, median | 39.3 | 38.9 | 22nd |
| Income inequality (Gini index) | 0.479 | 0.483 | 11th |
What the numbers mean for Alabama borrowers
Incomes are spread unevenly: 28% of Alabama households earn under $35,000 (U.S.: 21%), while 31% earn $100,000 or more (U.S.: 41%) and 8% top $200,000. Because partners generally need $30,000 or more in yearly income, the questionnaire states that floor on the income step instead of surprising anyone at the end.
A middle-of-the-road Alabama household brings in $63,999 a year. That is 21% below the $80,734 national median and good for 46th place. Use it as a yardstick: if your income sits well below the median, keep the loan smaller and the term shorter.
Long commutes of 45 minutes or more affect 15% of Alabama workers, which ranks 23rd of 51. Vehicle costs are a fixed line for long-distance commuters, so keep a repair cushion before taking on a new payment.
The Census Bureau's five-year unemployment estimate for Alabama is 4.7% (U.S.: 5.2%), and 15.6% of residents live below the poverty line. Five-year estimates smooth out booms and slumps, so they describe the economy's shape more than its current mood.
Largest places in Alabama
The 12 most populous places in Alabama, with Census income, rent and home value for each. Linked names have their own local guide on this site.
| City or town | County | People | Household income (median) | Median rent | Home value (median) |
|---|---|---|---|---|---|
| Huntsville | Madison County, Limestone County | 222,791 | $74,714 | $1,171 | $293,600 |
| Mobile | Mobile County | 203,416 | $53,558 | $1,068 | $193,300 |
| Birmingham | Jefferson County, Shelby County | 198,173 | $46,051 | $1,107 | $158,800 |
| Montgomery | Montgomery County | 197,494 | $56,811 | $1,089 | $161,900 |
| Tuscaloosa | Tuscaloosa County | 111,038 | $51,464 | $1,055 | $255,500 |
| Hoover | Shelby County, Jefferson County | 92,642 | $109,253 | $1,457 | $412,200 |
| Auburn | Lee County | 80,594 | $63,668 | $1,098 | $364,800 |
| Dothan | Houston County, Dale County | 71,514 | $55,792 | $960 | $194,000 |
| Madison | Madison County, Limestone County | 60,106 | $134,655 | $1,453 | $398,800 |
| Decatur | Morgan County, Limestone County | 57,361 | $61,563 | $896 | $210,200 |
| Florence | Lauderdale County | 41,701 | $52,174 | $820 | $196,300 |
| Prattville | Autauga County, Elmore County | 39,482 | $81,337 | $1,313 | $214,600 |
Counting places of 20,000 or more people, median household income in Alabama tops out at $201,479 in Mountain Brook and bottoms out at $39,613 in Bessemer. The state has 10 places over 50,000 and 70 over 10,000. The highest median rent among them is $1,711 in Trussville, the lowest $799 in Anniston.
More Alabama cities and towns
Continuing down the population list from Vestavia Hills to Anniston.
| Place | Population | Median income | Median rent |
|---|---|---|---|
| Vestavia Hills | 38,616 | $134,369 | $1,515 |
| Phenix City | 38,499 | $50,053 | $967 |
| Alabaster | 33,917 | $91,357 | $1,372 |
| Gadsden | 33,374 | $40,345 | $808 |
| Opelika | 32,820 | $65,004 | $950 |
| Northport | 31,218 | $80,913 | $982 |
| Enterprise | 29,505 | $73,125 | $1,098 |
| Daphne | 29,453 | $87,250 | $1,388 |
| Athens | 29,002 | $69,922 | $899 |
| Homewood | 27,829 | $94,485 | $1,463 |
| Trussville | 26,673 | $123,275 | $1,711 |
| Bessemer | 25,400 | $39,613 | $961 |
| Pelham | 24,827 | $101,094 | $1,577 |
| Fairhope | 24,190 | $94,274 | $1,689 |
| Foley | 24,026 | $66,336 | $1,242 |
| Albertville | 22,813 | $56,099 | $872 |
| Oxford | 22,063 | $74,268 | $925 |
| Mountain Brook | 22,029 | $201,479 | $1,456 |
| Helena | 21,769 | $115,139 | $1,574 |
| Anniston | 21,271 | $46,668 | $799 |
Measured as a year of median rent against median household income, housing weighs most in Bessemer (29%) and least in Mountain Brook (9%) among these 20 places.
Counties with the most residents
The largest 16 of Alabama's 67 counties, by population.
| County | Residents | Median income | Median rent | Typical home value |
|---|---|---|---|---|
| Jefferson County | 667,755 | $66,388 | $1,193 | $240,000 |
| Mobile County | 412,590 | $58,880 | $1,052 | $190,700 |
| Madison County | 405,718 | $86,499 | $1,209 | $299,200 |
| Baldwin County | 246,989 | $78,775 | $1,277 | $316,900 |
| Tuscaloosa County | 237,552 | $66,231 | $1,037 | $248,700 |
| Shelby County | 230,211 | $97,961 | $1,401 | $326,100 |
| Montgomery County | 226,718 | $59,386 | $1,092 | $171,900 |
| Lee County | 181,134 | $65,824 | $1,058 | $262,200 |
| Morgan County | 124,471 | $68,845 | $864 | $212,000 |
| Calhoun County | 116,090 | $55,029 | $826 | $156,600 |
| Limestone County | 111,233 | $83,629 | $970 | $281,000 |
| Houston County | 108,140 | $58,626 | $945 | $183,300 |
| Etowah County | 103,105 | $54,563 | $847 | $167,100 |
| Marshall County | 99,748 | $62,571 | $795 | $201,500 |
| Lauderdale County | 95,830 | $62,649 | $838 | $200,300 |
| St. Clair County | 94,166 | $77,463 | $1,084 | $226,300 |
Across all 67 counties, median household income ranges from $29,200 in Greene County to $97,961 in Shelby County. Your county's costs, not the state's, set how much room a new payment has.
How Alabama earns a living
Which sectors put Alabama to work? The four biggest are below, alongside national shares.
| Industry | Share of Alabama workers | U.S. share | Difference |
|---|---|---|---|
| Education, health care and social assistance | 23% | 24% | -0.8 pts |
| Manufacturing | 14% | 10% | +4.2 pts |
| Retail trade | 12% | 11% | +0.8 pts |
| Professional, scientific and administrative services | 10% | 13% | -2.5 pts |
Compared with the country, Alabama leans most toward manufacturing, at 14% of workers against 10% nationally. If your income comes from self-employment or gig work, gather two years of tax returns and recent bank statements before you compare offers.
More context for Alabama budgets
Alabama is an owner-heavy state for homeownership: 70% of occupied homes are owned, against 65% nationally. The median value of $209,900 equals 3.3 years of median income. 24% of mortgaged owners are housing-cost burdened, versus 28% nationally.
Median gross rent in Alabama is $1,007 a month, ranking 43rd, and 49% of renters are cost-burdened by the Census definition, compared with 51% nationally. For a renter, the safest loan is the smallest one that fixes the problem, sized to what is left after rent.
With a median age of 39.3 and 28% of adults holding a four-year degree, Alabama has a Gini inequality index of 0.479, ranking 11th from most to least unequal.
Checking a lender in Alabama
License checks come first. Alabama's banking agency, per the Conference of State Bank Supervisors, is the Alabama State Banking Department, and many consumer lenders also show their state licenses on NMLS Consumer Access.
- Ask for the lender's license number and look it up on NMLS Consumer Access.
- Report fee-first offers at ReportFraud.ftc.gov.
- Complaints can go to the state agency and to the CFPB.
Can Alabama residents use the questionnaire?
You can start it, and the location step is where you find out: if partners are not yet taking Alabama requests, you will see a short email waitlist and nothing more is asked.
Local guides in Alabama
Open a local guide for a closer look at your own city (4 in Alabama):
Frequently asked questions
Where do I check a lender's license in Alabama?
The state banking agency listed for Alabama by the Conference of State Bank Supervisors is the Alabama State Banking Department. NMLS Consumer Access lists many lenders' licenses, and the CFPB accepts complaints from every state.
How much does a typical Alabama household earn?
$63,999 a year in the 2020 to 2024 American Community Survey, 46th among the 50 states and DC; the national median is $80,734.
Is rent high in Alabama?
The typical renter pays $1,007; the U.S. median is $1,413. In Alabama, 49% of renting households spend 30 percent or more of income on housing.
How many Alabama residents live below the poverty line?
15.6% in the Census Bureau's 2020 to 2024 estimates, compared with 12.5% nationally. Households under strain should look at free options, such as hardship plans and nonprofit counseling, before a loan.