The 10 Most Affordable Cities in Alabama

Alabama is one of the most affordable states in the country, and home to several beautiful and safe cities. Enjoy southern hospitality, tasty restaurants, and college football without breaking your wallet. NewHomeSource has found the top 10 most affordable cities in Alabama to help you make the best financial decision. Plus, with several first-time homebuyer programs to help you with your closing costs and step-by-step guides to building a new home in Alabama, you’re guaranteed to find a home in a city you love, at a price you love more.

1. Gadsden

Home Price to Income Ratio: 2.25

Average Property Tax: $316

Median Household Income: $32,642

Gadsen tops our list of the most affordable cities in Alabama. Located along the Coosa River, Gadsden is home to waterside hiking trails, wildlife parks, and Noccalula Falls. Farther into the city, folks enjoy playing a round of golf at the local course, checking out the Gadsden Museum of art, and shopping at the local mall.

2. Talladega

Home Price to Income Ratio: 3.12

Average Property Tax: $329

Median Household Income: $27,719

Talladega is most famous for its motorsports complex, Talladega Superspeedway – the largest track in NASCAR. There’s more to this city than the thrilling races, however. The downtown scene offers plenty of entertainment, including restaurants, the Talladega Ritz Theater, and Cheaha State Park. To sample a taste of the city’s culture, we recommend checking out Dr. William R. Harvey Museum of Art and Jemison Carnegie Heritage Hall.

3. Bessemer

Home Price to Income Ratio: 2.68

Average Property Tax: $571

Median Household Income: $32,301

Bessemer is a thriving suburb located just southwest of the capital, Birmingham. Since it’s known as “The Marvel City” be prepared to marvel at local attractions such as Alabama Adventure & Splash Adventure, Autobahn Indoor Speedway, and beautiful scenery like Watercress Darter National Wildlife Refuge. In the past few years, Bessemer has grown into its own, welcoming a growth in industries and job opportunities.

4. Birmingham

Home Price to Income Ratio: 2.44

Average Property Tax: $601

Median Household Income: $37,375

Birmingham is one of Alabama’s most well-known cities, as well as one of its most affordable. Birmingham is chock full of activities. Spend your days at the Birmingham Museum of Art, Birmingham Zoo, or the local racetrack and casino. Birmingham was the site of many historic moments during the civil rights movement, and you can learn about the events and the struggle for justice at the Birmingham Civil Rights Institute.

5. Fairfield

Home Price to Income Ratio: 2.44

Average Property Tax: $654

Median Household Income: $40,652

Fairfield is a small city located just outside of Birmingham. Enjoy a diverse collection of restaurants and shops, including ones encompassed in Western Hills Mall. Fairfield has other delightful amenities, including a community center, local college, and parks.

6. Anniston

Home Price to Income Ratio: 2.71

Average Property Tax: $410

Median Household Income: $36,051

Anniston is tucked along the foothills of the Appalachian Mountains, which means beautiful mountain views. There are a variety of hiking and biking trails in the city that meander to the mountains and ideal places to camp as you trek up the hills. Other attractions you will want to visit are the Anniston Museum of Natural History and Freedom Riders National Monument.

7. Sylacauga

Home Price to Income Ratio: 3.59

Average Property Tax: $342

Median Household Income: $36,608

Welcome to Sylacauga! This small city is known for its white marble bedrock; folks even celebrate this geologic feature in the “Magic of Marble” festival. From restaurants, country clubs, and art centers, you’ll never find yourself without entertainment in Sylacauga.

8. Selma

Home Price to Income Ratio: 3.23

Average Property Tax: $340

Median Household Income: $27,030

Selma is a city drenched in history. From the Civil War to the fight for civil rights, Selma found itself in the heart of the struggle; walk through the Old Town Historic District or visit the National Voting Rights Museum and Institute to learn more about the fight for ratial equality. For scenic outdoor views and historical reenactments of the Battle of Selma, visit Riverside Park.

9. Center Point

Home Price to Income Ratio: 2.25

Average Property Tax: $645

Median Household Income: $43,515

Center Point is a suburb just northeast of Birmingham. With approximately 16,000 calling Center Point home, retirees can enjoy easy living outside the bustle of the big city. All the urban amenities you could want can be found here, including restaurants, schools, and places of worship.

10. Ozark

Home Price to Income Ratio: 2.82

Average Property Tax: $416

Median Household Income: $41,027

Ozark is located in southeast Alabama, approximately an hour’s drive north of the Alabama-Florida boundary. On sweltering hot summer days, cool off and catch some fish at Ed Lisenby Lake, or go for a ride along the connecting bike trails. Whether you prefer swinging clubs at the Ozark Golf Course or admiring the newest sculptures at the Rudd Art Center, Ozark offers something for everyone.

While this list is sorted by the lowest overall cost of living index, the following cities have the lowest home price to income ratio, meaning you can get more home for your money. 

1. Alabaster (2.16)

Enjoy the great outdoors in this Birmingham suburb by exploring Buck Creek Trail and Abbey Wooley Park.

2. Helena (2.22)

Just north of Alabaster, Helena is located along the Cahaba River. Enjoy strolling along the Hillsboro Trail or catching a game at the Helena Sports Complex.

3. Pleasant Grove (2.23)

This charming city of 9,500 folks is known as “The Good Neighbor City”, and you can expect a friendly welcome.