Homewood cost of living index

In the event that the cost of living data was unavailable for this city, estimates based upon nearby cities were used. Each cost of living index is based on a national average of 100. If the amount is below 100, it is lower than the national average. If the amount is above 100, it is higher than the national average.
IndexHomewoodAlabamaNational
Cost of living index11189100
IndexHomewoodAlabamaNational
Goods & Services index9998100
Groceries index10298100
Health care index8185100
Housing index14473100
Transportation index8992100
Utilities index9399100
Here we can see a simple outline of the cost of living in Homewood, AL. As you can see, with the average cost of living in Homewood, AL being 111, that puts it 24% higher than the average of Alabama and 11% higher than our nation's average. This simple outline of the cost of living index was formulated using prices of: goods and services (weighted 33%), housing prices (weighted 30%), groceries (weighted 13%), utilities (weighted 10%), transportation (weighted 9%), and health care (weighted 5%). Thus, goods/services, along with housing influences the majority of the cost of living index. The price of daily goods and services is a valuable and reliable number to be aware of when considering the general price of the city's goods. In the case of Homewood, AL, the price of goods and services are 1% higher than the average of Alabama as well as 1% lower than the nation's average.

Did you know?

  • The cost of living in Homewood is 24% higher than the Alabama average.
  • The cost of living in Homewood is 11% higher than the national average.
  • The cost of housing in Homewood is 44% higher than the national average.
  • Alabama general sales tax is 21% lower than the national average.
  • Alabama state income tax is 10% lower than the national average.

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Compare Homewood, AL Cost of living To Other Cities

Salary Calculator

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Use the salary calculator to compare your current salary in Homewood, AL to any other city. The salary calculator will tell you how much you would need to earn in any given city to maintain the same standard of living based on the cost of living in each city. For example, if the cost of living in the city you are looking to relocate to is higher than the cost of living in Homewood, AL, then you would need to earn more income in order to maintain the same standard of living. To use the Homewood, AL salary calculator, simply enter in the name of the new city, then adjust the slider to your current income. The salary calculator will do the rest and let you know if you need to earn more or less in the new city. You will also see a complete breakdown of the cost of living.

Median Income & Debt-To-Income Ratio

Median IncomePer YearPer MonthMax Budget (28% DTI)Max Budget (36% DTI)
Owners$92,793$7,733$2,165$2,784
Renters$39,205$3,267$915$1,176
The percent of monthly income spent on housing can be a good indicator of the affordability of housing in Homewood, AL as well as the overall cost of living. As a general rule of thumb, the debt-to-income ratio (DTI) for homeowners or renters should be not more than 28 percent of gross income to be spent on housing related costs and not more than 36 percent of income on all expenses, including debts. The median income for Homewood, AL homeowners, is $92,793. This would allow for a maximum of $2,165 per month to be spent on housing costs. For renters, the median monthly income is $39,205 which would result in a maximum of $915 to be spent on rental costs.

Alabama Sales Tax

StateGeneral Sales TaxWith Max Surtax
Alabama4%10%

Alabama Income Tax

StateIncome Tax (Low)Income Tax (High)
Alabama2%5%
When you are determining the total cost of living in Homewood, AL you will want to make sure you consider both the Alabama sales tax and the Alabama income tax rates. Sales tax come in the form of taxes levied on both services and goods that are sold. The sales tax rates are different state to state and range from zero sales tax to higher than 7%. The sales tax in Alabama is 4%, with the highest surtax being 10%. Tax that is on income by the government is income tax. Different states have different income tax rates and these rates can be higher or lower dependent on the corresponding tax bracket. The state income tax rates are different state to state and range from no income tax to more than 9% income tax. The income tax rates in Alabama have a range from 2% to 5%.

Goods & Services

ItemHomewoodNational avg.Difference
Haircut $14.50$14.590.6%
Beauty Salon $29.50$34.6814.9%
Toothpaste $2.49$2.470.7%
Shampoo $0.92$1.0210.0%
Movie $10.06$9.871.9%
Bowling $4.65$4.395.9%

Groceries

ItemHomewoodNational avg.Difference
Ground Beef $4.47$4.480.2%
Fried Chicken $1.34$1.468.5%
Milk $2.29$2.362.8%
Potatoes $4.38$3.0643.1%
Pizza $10.00$9.248.2%
Beer $7.93$8.638.1%

Health Care

ItemHomewoodNational avg.Difference
Optometrist $109.33$99.789.6%
Doctor $86.00$105.0318.1%
Dentist $65.67$88.7026.0%
Ibuprofen $7.69$9.4118.3%
Lipitor $247.00$298.5017.3%

Housing

ItemHomewoodNational avg.Difference
Home Price $286,300.00$175,700.0062.9%
Avg. Mortgage Payment $846.13$1,081.0321.7%
Apartment Rent $923.00$920.000.3%

Transportation

ItemHomewoodNational avg.Difference
Gasoline $1.90$2.098.9%
Tire Balancing $37.90$45.2916.3%

Utilities

ItemHomewoodNational avg.Difference
All Electricity$166.92$170.802.3%
Phone $24.33$28.2613.9%
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, StatePopulationCost of Living IndexNational Avg.
Cardiff, AL2175-25%
McDonald Chapel, AL51478-22%
Lipscomb, AL2,33180-20%
Mulga, AL95280-20%
Brighton, AL2,91881-19%
Homewood, AL25,42011111%

Cities with similar population

City, StatePopulationCost of Living IndexNational Avg.
Milford, MA25,42212727%
Zanesville, OH25,44480-20%
Wright, FL25,38497-3%
Syracuse, UT25,37411313%
Wyandotte, MI25,47085-15%
Homewood, AL25,42011111%
Source: The Homewood, AL cost of living data displayed above is derived from the Council for Community and Economic Research (C2ER) for the fourth quarter of 2015.