Rainbow City 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.
IndexRainbow CityAlabamaNational
Cost of living index8989100
IndexRainbow CityAlabamaNational
Goods & Services index9498100
Groceries index9498100
Health care index8085100
Housing index7973100
Transportation index8992100
Utilities index9699100
Here we can see a simple outline of the cost of living in Rainbow City, AL. As you can see, with the average cost of living in Rainbow City, AL being 89, that puts it 1% lower than the average of Alabama and 11% lower 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 Rainbow City, AL, the price of goods and services are 4% lower than the average of Alabama as well as 6% lower than the nation's average.

Did you know?

  • The cost of living in Rainbow City is 1% lower than the Alabama average.
  • The cost of living in Rainbow City is 11% lower than the national average.
  • The cost of housing in Rainbow City is 21% lower 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 Rainbow City, AL Cost of living To Other Cities

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
Using the salary calculator lets you compare the salary you earn in Rainbow City, AL to what it is in other cities. It will let you know what your earnings would have to be in another city to have the same standard of living, as determined by the cost of living in each city. For example, if the cost of living in the area you want to move to is higher than the cost of living in Rainbow City, AL, you have to earn a higher income in order to still have the same standard of living. To operate the Rainbow City, AL salary calculator, put in the name of the other city, then move the slider to the point that represents the current income. The salary calculator will take care of the rest and tell you how much more or less you must earn in the new city. A Total breakdown of the cost of living is also provided.

Median Income & Debt-To-Income Ratio

Median IncomePer YearPer MonthMax Budget (28% DTI)Max Budget (36% DTI)
The percent of monthly income spent on housing can be a good indicator of the affordability of housing in Rainbow City, 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 Rainbow City, AL homeowners, is $54,780. This would allow for a maximum of $1,278 per month to be spent on housing costs. For renters, the median monthly income is $25,430 which would result in a maximum of $593 to be spent on rental costs.

Alabama Sales Tax

StateGeneral Sales TaxWith Max Surtax

Alabama Income Tax

StateIncome Tax (Low)Income Tax (High)
When considering the overall cost of living expenses in Rainbow City, AL, it's important to take into account the sales tax for Alabama, as well as the rate for income tax in Alabama. Goods and services sold to consumers in any state have some form of sales tax. Each state has its own tax code, which means that sales tax rates vary from state to state, ranging from over 7% in some states to as low as 0% in others. The maximum surtax for Alabama is 10%, and the sales tax in the state of Alabama is 4%. Alternatively, the tax imposed on your income by the state government is known as income tax. The rate for this tax also varies from state to state, and your rate is affected by your tax bracket, which is determined by your level of income. Income tax rates might be as high as 9%, down to as low as 0%. The range for income tax rates in Alabama starts from 2% and goes up to 5%.

Goods & Services

ItemRainbow CityNational avg.Difference
Haircut $14.00$14.594.1%
Beauty Salon $29.20$34.6815.8%
Toothpaste $2.02$2.4718.3%
Shampoo $1.05$1.022.7%
Movie $9.25$9.876.3%
Bowling $7.00$4.3959.4%


ItemRainbow CityNational avg.Difference
Ground Beef $3.99$4.4810.9%
Fried Chicken $1.24$1.4615.3%
Milk $2.05$2.3613.0%
Potatoes $2.79$3.068.9%
Pizza $8.00$9.2413.4%
Beer $7.83$8.639.3%

Health Care

ItemRainbow CityNational avg.Difference
Optometrist $86.00$99.7813.8%
Doctor $79.00$105.0324.8%
Dentist $74.40$88.7016.1%
Ibuprofen $9.36$9.410.6%
Lipitor $215.26$298.5027.9%


ItemRainbow CityNational avg.Difference
Home Price $142,000.00$175,700.0019.2%
Avg. Mortgage Payment $821.09$1,081.0324.0%
Apartment Rent $699.00$920.0024.0%


ItemRainbow CityNational avg.Difference
Gasoline $1.89$2.099.4%
Tire Balancing $38.91$45.2914.1%


ItemRainbow CityNational avg.Difference
All Electricity$173.64$170.801.7%
Phone $25.01$28.2611.5%
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.
Egypt, AL1,15375-25%
Ivalee, AL70978-22%
Attalla, AL5,99578-22%
Ballplay, AL1,44478-22%
Gadsden, AL36,62179-21%
Rainbow City, AL9,62389-11%

Cities with similar population

City, StatePopulationCost of Living IndexNational Avg.
Brentwood, PA9,62590-10%
Bluffton, IN9,62182-18%
Oregon, WI9,6291066%
Jefferson, GA9,63098-2%
Fairfield, IA9,61582-18%
Rainbow City, AL9,62389-11%
Source: The Rainbow City, AL cost of living data displayed above is derived from the Council for Community and Economic Research (C2ER) for the fourth quarter of 2015.