A+
12%
Overall NAT. AVG.
5%
Goods & Services NAT. AVG.
25%
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 Decatur Alabama National
Cost of living8888100
Goods & Services9596100
Groceries9696100
Health care8187100
Housing7572100
Transportation8891100
Utilities98102100

An Overview of Cost of Living in Decatur, AL

Understanding the cost of living in Decatur can help future residents assess whether their current financial situation aligns with the expenses they will encounter. It enables them to plan for potential changes in their budget and lifestyle. The Decatur cost of living index is 88, which is 12% lower than the national average. The cost of living index is calculated by taking into account multiple categories, which encompass both the cost of everyday expenditures and larger expenses as well.

Is Decatur Affordable?

Is Decatur affordable? This is a pivotal question, especially when mulling over a move, as affordability carries substantial weight in your decision-making process. Factors such as the cost of living index (discussed earlier), housing expenses and income levels all contribute to a location's affordability. For instance, in Decatur, the median home price is 23.7% lower than the national average and monthly rent prices are 27.1% lower than the typical rates. Additionally, the median income levels play a role in affordability, with Decatur boasting a median household income of $49,296, 10.9% lower than the national average.

What Factors can Influence the Cost of Living in Decatur?

Taxes: Locations with elevated tax rates, encompassing both sales and income taxes, can be a factor in driving up the cost of living. When you're paying more in taxes for everyday goods and services, it naturally translates into higher expenses. Similarly, a higher income tax rate can also contribute to an overall higher cost of living. In Decatur, the standard sales tax rate starts at 4%, and the income tax rates commence at 2%.

Transportation: If public transportation is limited or not available, residents may need to own and maintain vehicles, which can add to the cost of living. Gas, insurance, regular maintenance and potentially lease or finance payments will all need to be paid on a monthly basis. In Decatur, the transportation index is 12% lower than the national average.

Housing: High demand for housing in desirable locations can drive up property prices and rental rates. This can be a primary contributor to a higher cost of living. While low demand for housing, especially in undesirable locations, can have the reverse effect and drive prices down, resulting in a lower cost of living. The housing index in Decatur, is 24.7% lower than the national average.

Where is the Data From?

The cost of living data in Decatur displayed above is sourced from the C2ER cost of living index, which serves as a practical tool for comparing living expenses across urban areas. Published on a quarterly basis, this index aggregates data from over 300 independent researchers, encompassing more than 60 goods and services, in 6 different categories. The weightings assigned to cost differences rely on government survey data that tracks the spending habits of professional and executive households. It's worth noting that the C2ER index excludes data on sales or income tax rates, while AreaVibes integrates tax rates into the overall cost of living evaluation for each region.

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Cost Of Living Quick Facts

  • The cost of living in Decatur is equal to the Alabama average
  • The cost of living in Decatur is 12% lower than the national average
  • Decatur housing is 25% 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

Most Affordable Places to Live in and Around Decatur

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Compare Decatur, 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$68,156$5,680$1,590$2,045
      Renters$28,583$2,382$667$858
      A good indicator of the general affordability of housing in Decatur, 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 Decatur, the median monthly income is $68,156 for those who own their own homes. Under the standard rule, that income level would allow for $1,590 to be budgeted for housing expenses each month, at the most. Renters, on the other hand, earn about $28,583, per the median income in the area. That would allow for renters to spend up to $667 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 Decatur National avg. Difference
      Haircut $16.56$24.2631.8%
      Beauty Salon $43.94$45.563.6%
      Toothpaste $3.76$3.701.6%
      Shampoo $1.11$1.2813.1%
      Movie $11.52$12.135.0%
      Bowling $18.22$18.001.2%

      Groceries

      Item Decatur National avg. Difference
      Ground Beef $5.55$5.845.0%
      Fried Chicken $1.41$1.5710.1%
      Milk $4.52$4.673.2%
      Potatoes $5.42$4.939.9%
      Pizza $11.35$12.096.1%
      Beer $10.33$10.410.8%

      Health Care

      Item Decatur National avg. Difference
      Optometrist $86.78$125.6831.0%
      Doctor $88.83$135.7834.6%
      Dentist $91.06$113.2919.6%
      Ibuprofen $10.10$10.655.2%
      Lipitor $496.37$468.605.9%

      Housing

      Item Decatur National avg. Difference
      Home Price $141,000.00$184,700.0023.7%
      Avg. Mortgage Payment $1,674.56$2,346.6928.6%
      Apartment Rent $692.00$949.0027.1%

      Transportation

      Item Decatur National avg. Difference
      Gasoline $3.08$3.4610.9%
      Tire Balancing $51.25$59.9214.5%

      Utilities

      Item Decatur National avg. Difference
      All Electricity $172.88$193.9910.9%
      Phone $213.41$192.2511.0%
      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.
      Somerville, AL6538119.1%
      Trinity, AL2,5938812.1%
      Hillsboro, AL5908811.7%
      Hartselle, AL14,4218910.8%
      Triana, AL2,323946.4%
      Decatur, AL54,3448811.9%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Rocky Mount, NC54,3308911.1%
      Yucaipa, CA54,35812828.2%
      Albany, OR54,44211010.0%
      Westchester, FL54,47012625.5%
      Colton, CA54,21512222.2%
      Decatur, AL54,3448811.9%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.