Pelham 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.
IndexPelhamAlabamaNational
Cost of living index9789100
IndexPelhamAlabamaNational
Goods & Services index9998100
Groceries index10298100
Health care index8185100
Housing index10071100
Transportation index8992100
Utilities index9399100
An overview of the general cost of living index for Pelham, AL is displayed above for your reference. Residents in Pelham, AL enjoy a cost of living index of 97. This index is 10% higher than the Alabama average, and 3% lower than the national average. The following categories are used when determining the cost of living index for any given city: health care (5%), transportation (9%), utilities (10%), groceries (13%), housing (30%), and goods/services (33%). Clearly, housing and goods/services make up the majority of the formula for calculating the cost of living index. Because of this, the general cost of living for any given area can be estimated by looking at the cost of everyday goods in that area. For those living in Pelham, AL, the average cost of goods and services is 1% higher than it is in Alabama, and it is 1% lower than the national average.

Did you know?

  • The cost of living in Pelham is 10% higher than the Alabama average.
  • The cost of living in Pelham is 3% lower than the national average.
  • The cost of housing in Pelham is equal to 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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Salary Calculator

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Groceries index
Health care index
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The salary calculator allows you to compare how much your current salary in Pelham, AL would be worth in another city. In other words, the salary calculator will adjust the figure you enter for cost of living so that you can determine how much more or much less you would need to earn while maintaining your current quality of living. If you are considering relocating to a more expensive city than Pelham, AL, the calculator will tell you how much more you need to earn so you can assess job offers more accurately. The Pelham, AL salary calculator is easy to use. All you do is enter the name of another city, then move the slider to your current income. After that, the salary calculator will crunch the numbers for you and give you the information you need about the place you are considering going. Additionally, it will show a detailed breakdown of the cost of living.

Median Income & Debt-To-Income Ratio

Median IncomePer YearPer MonthMax Budget (28% DTI)Max Budget (36% DTI)
Owners$74,958$6,247$1,749$2,249
Renters$47,222$3,935$1,102$1,417
The affordability of the housing market in Pelham, AL as well as the overall cost of living can be indicated accurately by what percent of the monthly income is spent on housing related costs. This is konwn as the debt-to-income ratio (DTI). The overall rule of thumb is that no more than 28% of your gross income should ever be used on the overall costs related to housing and no more than 36% of gross income on all expenses and debts. Among Pelham, AL homeowners, the median income is $74,958. This indicates that a monthly maximum of $1,749 should be spent by homeowners on all housing related costs. Renters have a median income of $47,222. This indicates that renters should have a maximum of $1,102 used for their rent related monthly costs.

Alabama Sales Tax

StateGeneral Sales TaxWith Max Surtax
Alabama4%10%

Alabama Income Tax

StateIncome Tax (Low)Income Tax (High)
Alabama2%5%
The Alabama sales tax and Alabama income tax rates should definitely be considered when determining the overall cost of living in Pelham, AL. Sales taxes are taxes that are imposed onto goods and services sold. Sales taxes do vary by state and can range from no tax at all to upwards of 7%. The Alabama sales tax is 4% and the maximum surtax is 10%. Income tax is the tax imposed on income by the government. The income tax rates will vary by state and will also increase or decrease depending on the corresponding tax bracket. State income tax rates can range from anywhere from no tax at all to more than 9%. The Alabama income tax rates range from 2% to 5%.

Goods & Services

ItemPelhamNational 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

ItemPelhamNational 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

ItemPelhamNational 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

ItemPelhamNational avg.Difference
Home Price $167,600.00$181,400.007.6%
Avg. Mortgage Payment $846.13$1,081.0321.7%
Apartment Rent $1,036.00$889.0016.5%

Transportation

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

Utilities

ItemPelhamNational 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.
Brantleyville, AL1,07377-23%
Lipscomb, AL2,05880-20%
Brighton, AL2,96680-20%
Shelby, AL1,31784-16%
Bessemer, AL27,51684-16%
Pelham, AL21,32197-3%

Cities with similar population

City, StatePopulationCost of Living IndexNational Avg.
Oxford, OH21,33890-10%
Sedalia, MO21,34084-16%
Biddeford, ME21,35111313%
Palm River-Clair Mel, FL21,27991-9%
Clifton, CO21,27094-6%
Pelham, AL21,32197-3%
Source: The Pelham, AL cost of living data displayed above is derived from the Council for Community and Economic Research (C2ER) for the fourth quarter of 2015.