Cost Of Living in Arab, AL

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A

8%

Overall NAT. AVG.

1%

Goods & Services NAT. AVG.

23%

Housing NAT. AVG.

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	Arab	Alabama	National
Cost of living	92	88	100
Goods & Services	99	96	100
Groceries	99	96	100
Health care	93	87	100
Housing	77	72	100
Transportation	94	91	100
Utilities	98	102	100

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Cost Of Living Quick Facts

The cost of living in Arab is 4% higher than the Alabama average
The cost of living in Arab is 8% lower than the national average
Arab housing is 23% lower than the national average
Alabama general sales tax is 22% lower than the national average
Alabama state income tax is 23% lower than the national average

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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	$67,222	$5,602	$1,568	$2,017
Renters	$23,717	$1,976	$553	$712

The percentage of monthly income spent on housing related expenses can help predict the affordability of housing in Arab, AL, as well as what the overall cost of living might be. Generally, a good rule to follow is that the debt-to-income (DTI) level you want to maintain is 28 percent or less of your income on your rent or mortgage payments and not more than 36 percent of income on all expenses and debts. In Arab, homeowners have a median income of $67,222. Using that number, a maximum of $1,568 per month should be allocated to housing expenses. For those who are renting instead of owning, the median income is $23,717, which means there is a maximum of $553 to be spent on the costs of renting a home or apartment.

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	Arab	National avg.	Difference
Haircut	$24.45	$24.26	0.8%
Beauty Salon	$52.50	$45.56	15.2%
Toothpaste	$3.85	$3.70	4.1%
Shampoo	$1.24	$1.28	3.4%
Movie	$12.52	$12.13	3.2%
Bowling	$22.78	$18.00	26.5%

Groceries

Item	Arab	National avg.	Difference
Ground Beef	$6.04	$5.84	3.5%
Fried Chicken	$1.42	$1.57	9.7%
Milk	$4.55	$4.67	2.6%
Potatoes	$5.33	$4.93	7.9%
Pizza	$12.16	$12.09	0.6%
Beer	$10.23	$10.41	1.7%

Health Care

Item	Arab	National avg.	Difference
Optometrist	$104.06	$125.68	17.2%
Doctor	$130.44	$135.78	3.9%
Dentist	$113.33	$113.29	0.0%
Ibuprofen	$10.52	$10.65	1.2%
Lipitor	$367.22	$468.60	21.6%

Housing

Item	Arab	National avg.	Difference
Home Price	$153,900.00	$184,700.00	16.7%
Avg. Mortgage Payment	$1,800.86	$2,346.69	23.3%
Apartment Rent	$593.00	$949.00	37.5%

Transportation

Item	Arab	National avg.	Difference
Gasoline	$3.16	$3.46	8.7%
Tire Balancing	$61.19	$59.92	2.1%

Utilities

Item	Arab	National avg.	Difference
All Electricity	$191.34	$193.99	1.4%
Phone	$188.01	$192.25	2.2%

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.
Baileyton, AL	1,012	82	17.7%
Snead, AL	1,034	89	11.2%
Holly Pond, AL	837	86	13.9%
Douglas, AL	1,076	90	10.1%
New Hope, AL	2,881	91	8.9%
Arab, AL	8,405	92	8.2%

Cities with similar population

City	Population	Cost of Living Index	National Avg.
Cape St. Claire, MD	8,405	134	33.5%
Socorro, NM	8,406	91	9.5%
Salem, UT	8,403	123	22.8%
Kapuskasing, ON	8,403	n/a
Greenville, MI	8,407	86	14.3%
Arab, AL	8,405	92	8.2%