D+
7%
Overall NAT. AVG.
2%
Goods & Services NAT. AVG.
30%
Housing NAT. AVG.
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Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.
The cost of living index is based on a national average of 100. For example, if the cost of living is 90, then it is 10% lower than average. If the cost of living is 110, then it is 10% higher than average. The breakdown for each index is as follows: goods & services (33%), groceries (13%), health care (5%), housing (30%), transportation (9%) and utilities (10%). If the cost of living data was unavailable for this city, estimates based upon nearby cities were used.
Index Chelsea Alabama National
Cost of living10788100
Goods & Services9896100
Groceries9796100
Health care9487100
Housing13072100
Transportation9191100
Utilities108102100

An Overview of Cost of Living in Chelsea, AL

The cost of living in Chelsea affects the quality of life one can afford in this new location. It allows people to assess whether they can maintain their preferred lifestyle, including housing, leisure activities and dining options. Your total monthly expenditures can varry depending on the area, as well as many other factors. The cost of living in Chelsea is 107, which is 7% higher than the national average. Knowledge of the cost of living can help individuals make informed decisions about retirement savings, investments, and financial goals.

The cost of living in Chelsea closely mirrors the national average in comparison to other cities nationwide. Essential items such as groceries, goods and services, health care and utilities are priced at a level consistent with similar urban areas. This means that residents of Chelsea can anticipate that their daily expenses will remain reasonably in line with those of an average city, contributing to a manageable cost of living.

Housing costs are a major factor in the Chelsea cost of living index, and they often eat up a big chunk of your take-home pay. Unfortunately, in this area, housing expenses for both homeownership and rentals were 30.3% higher than what's typical in an average city. That includes the prices of homes and rents, as well as mortgage rates and insurance.

Is Chelsea Affordable?

Is Chelsea an affordable place to live? That's a valid question to ask when you're thinking about moving to a new city. After all, how much it costs to live somewhere can be a huge factor in your decision. Affordability can be broken down into 3 common categories. The cost of living index (we talked about it earlier), housing expenses and income levels all play a big role in figuring out if a place is affordable. For instance, in Chelsea, the median home price is 30.6% higher than what most folks pay across the country, and monthly rent prices are 29.6% higher than the usual rates. Income levels in Chelsea come in at $92,917, which is 68% higher than the national average.

What Factors can Influence the Cost of Living in Chelsea?

Groceries: Grocery costs have continued to increase significantly over the last 2-3 years. In some markets the cost of food has gone up by more than 20% in that period. While other markets have managed to see only a moderate uptick. These food costs can have a major impact on the cost of living in any area. In Chelsea, the groceries index is 3.3% lower than the national average.

Subsidies: Certain cities or states may implement government subsidies or assistance programs with the goal of alleviating the cost of living pressures on their residents. These programs encompass a broad spectrum of support mechanisms, including Medicare, Medicaid, housing subsidies, low-income home energy assistance programs, school lunch programs, supplemental nutrition assistance programs, student loans, electric vehicle tax credits, affordable care act subsidies and farming subsidies. Areas offering fewer subsidies may experience a rise in their cost of living.

Transportation: In areas where public transportation is scarce or unavailable, residents often find themselves compelled to own and upkeep vehicles, thereby increasing the overall cost of living. Monthly expenses encompass fuel, insurance, routine maintenance and potentially lease or financing payments. In Chelsea, the transportation index is 9.5% lower than the national average.

Where is the Data From?

The Chelsea cost of living data displayed above is derived from the C2ER cost of living index to provide a useful and reasonably accurate measure of living cost differences in urban areas. The index takes into account data from 300 independent researches, covering more than 60 goods and services across 6 different categories, to create an overall index for each area, with 100 being the average. The C2ER index does not include sales or income tax rates in their data, however AreaVibes does include both income and sales tax rates in the overall cost of living score for each area.

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Cost Of Living Quick Facts

  • The cost of living in Chelsea is 22% higher than the Alabama average
  • The cost of living in Chelsea is 7% higher than the national average
  • Chelsea housing is 30% higher than the national average
  • Alabama general sales tax is 22% lower than the national average
  • Alabama state income tax is 11% lower than the national average

Most Affordable Places to Live in and Around Chelsea

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Compare Chelsea, AL Cost of Living

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      Salary Calculator

      This is how much you would need to earn in
      Price difference in compared to
      Cost of living index
      Goods & Services index
      Groceries index
      Health care index
      Housing index
      Transportation index
      Utilities index

      Median Income & Debt-To-Income Ratio

      Median Income Per Year Per Month Max Budget (28% DTI) Max Budget (36% DTI)
      Owners$97,500$8,125$2,275$2,925
      Renters$73,656$6,138$1,719$2,210
      A good indicator of the general affordability of housing in Chelsea, AL, is the percentage of monthly income that should be spent on housing expenses, otherwise known as the debt-to-income ratio (DTI). Generally speaking, no more than 28 percent of your total gross income should be spent on your housing expenses and not more than 36 percent of your gross income on total expenses, including debts. In Chelsea, the median monthly income is $97,500 for those who own their own homes. Under the standard rule, that income level would allow for $2,275 to be budgeted for housing expenses each month, at the most. Renters, on the other hand, earn about $73,656, per the median income in the area. That would allow for renters to spend up to $1,719 on monthly rental expenses.

      Alabama Sales Tax

      State General Sales Tax With Max Surtax
      Alabama 4% 13.5%

      Alabama Income Tax

      State Income Tax (Low) Income Tax (High)
      Alabama 2% 5%

      Goods & Services

      Item Chelsea National avg. Difference
      Haircut $20.07$24.2617.3%
      Beauty Salon $45.74$45.560.4%
      Toothpaste $3.76$3.701.6%
      Shampoo $1.33$1.284.1%
      Movie $12.54$12.133.3%
      Bowling $16.37$18.009.1%

      Groceries

      Item Chelsea National avg. Difference
      Ground Beef $6.01$5.843.0%
      Fried Chicken $1.66$1.575.5%
      Milk $4.54$4.672.9%
      Potatoes $5.23$4.936.0%
      Pizza $10.99$12.099.1%
      Beer $10.40$10.410.1%

      Health Care

      Item Chelsea National avg. Difference
      Optometrist $92.33$125.6826.5%
      Doctor $101.83$135.7825.0%
      Dentist $125.78$113.2911.0%
      Ibuprofen $10.28$10.653.5%
      Lipitor $460.79$468.601.7%

      Housing

      Item Chelsea National avg. Difference
      Home Price $241,300.00$184,700.0030.6%
      Avg. Mortgage Payment $1,935.73$2,346.6917.5%
      Apartment Rent $1,230.00$949.0029.6%

      Transportation

      Item Chelsea National avg. Difference
      Gasoline $3.13$3.469.7%
      Tire Balancing $54.52$59.929.0%

      Utilities

      Item Chelsea National avg. Difference
      All Electricity $219.40$193.9913.1%
      Phone $188.55$192.251.9%
      Although the cost of living data is updated regularly, this cost of living information is to be used as estimates only as prices can change on an ongoing basis.

      Nearby cities with low cost of living

      City Population Cost of Living Index National Avg.
      Brantleyville, AL8107722.6%
      Talladega Springs, AL1418613.8%
      Fayetteville, AL1,1098712.8%
      Vincent, AL1,9568712.6%
      Birmingham, AL210,9288812.3%
      Chelsea, AL13,5991077.5%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Canton, IL13,6008316.7%
      Marshall, MN13,6048811.6%
      Forest City, FL13,59211212.0%
      Jensen Beach, FL13,5921055.3%
      Middlesex, NJ13,60612525.4%
      Chelsea, AL13,5991077.5%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.