A+
9%
Overall NAT. AVG.
6%
Groceries NAT. AVG.
16%
Housing NAT. AVG.
Date & Last Updated: These cost of living estimates reflect 2026 modeled data using U.S. Census housing inputs and AI-assisted city-level pricing models.
The cost of living index is based on a national average of 100. For example, if the cost of living score is 90, then the estimated cost of living is 10% lower than the national average. If the score is 110, then the estimated cost of living is 10% higher than average. The overall index is calculated using weighted estimates across major everyday expense categories, including housing (30%), groceries (16%), transportation (12%), healthcare (10%), utilities (8%), lifestyle and entertainment (8%), household expenses (8%), and education and childcare (8%). All values are AI-assisted city-level estimates designed for directional comparisons.
Index Dothan Alabama National
Cost of living9189100
Groceries9496100
Health care9495100
Housing8474100
Transportation9395100
Utilities10197100
Lifestyle & Entertainment8994100
Household Items9996100
Education & Childcare9193100
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An Overview of Cost of Living in Dothan, AL

Getting a feel for the cost of living in Dothan is essential for anyone planning to relocate, as it empowers them to make informed financial decisions, secure a comfortable lifestyle and maintain financial stability in their new environment. The cost of living in Dothan is 91, which is 9% lower than the national average. Relocating individuals may need to adjust their savings and investment strategies based on the cost of living in the new location. It influences decisions about retirement planning, investments and financial goals.

The cost of living in Dothan aligns closely with the national average when compared to other cities across the nation. Everyday essentials such as groceries, household expenses, health care and utility bills are priced at a level consistent with the average in similar urban areas. Dothan residents can anticipate that their daily expenses won't be significantly higher than those in an average city, ensuring that the cost of living remains manageable.

What Do Locals Say About the Cost of Living in Dothan?

The real experts on a city are its residents. That's why we reached out to 11 locals to get their views on the cost of living in Dothan. We surveyed the residents and asked them if they felt like prices were affordable or out of reach. The results were as follows. 55% found it budget-friendly with decreasing prices, while 45% said it's simply not affordable as prices have continued to rise.

Is Dothan Affordable?

Is Dothan an affordable place to live? That's a valid question to ask when you're thinking about moving to a new city. After all, how much it costs to live somewhere can be a huge factor in your decision. Affordability can be broken down into 3 common categories. The cost of living index (we talked about it earlier), housing expenses and income levels all play a big role in figuring out if a place is affordable. For instance, in Dothan, the median home price is 13.5% lower than what most folks pay across the country, and monthly rent prices are 21% lower than the usual rates. Income levels in Dothan come in at $73,251, which is 9.9% lower than the national average.

What Factors can Influence the Cost of Living in Dothan?

Groceries: Grocery costs have continued to increase significantly over the last 2-3 years. In some markets the cost of food has gone up by more than 20% in that period. While other markets have managed to see only a moderate uptick. These food costs can have a major impact on the cost of living in any area. In Dothan, the groceries index is 5.9% lower than the national average.

Transportation: In areas where public transportation is scarce or unavailable, residents often find themselves compelled to own and upkeep vehicles, thereby increasing the overall cost of living. Monthly expenses encompass fuel, insurance, routine maintenance and potentially lease or financing payments. In Dothan, the transportation index is 6.6% lower than the national average.

Healthcare: Healthcare costs and insurance premiums can undergo substantial fluctuations based on the city or state of residence. Elements such as the availability of healthcare facilities, out-of-pocket costs for medical consultations, dental expenses, prescription medication charges and specialized medical care fees all contribute to variations in the cost of living. In Dothan, healthcare costs are 5.7% lower than the national average.

Where is the Data From?

The Dothan cost of living data displayed above uses a U.S. average baseline of 100 to provide a practical way to compare living expenses across cities. Housing estimates incorporate U.S. Census home price and rental data, while all other values are generated using AI-assisted models based on everyday expense expectations, regional pricing trends, climate, transportation patterns, and local economic conditions. These values are designed for directional city-to-city comparisons.

Cost Of Living Quick Facts

  • The cost of living in Dothan is 3% higher than the Alabama average
  • The cost of living in Dothan is 9% lower than the national average
  • Dothan housing is 16% 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 Dothan

See all the best places to live around Dothan

Compare Dothan, AL Cost of Living

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      Median Income & Debt-To-Income Ratio

      Median Income Per Year Per Month Max Budget (28% DTI) Max Budget (36% DTI)
      Owners$102,079$8,507$2,382$3,063
      Renters$47,162$3,930$1,100$1,415
      A good indicator of the general affordability of housing in Dothan, 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 Dothan, the median monthly income is $102,079 for those who own their own homes. Under the standard rule, that income level would allow for $2,382 to be budgeted for housing expenses each month, at the most. Renters, on the other hand, earn about $47,162, per the median income in the area. That would allow for renters to spend up to $1,100 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%

      Nearby cities with low cost of living

      City Population Cost of Living Index National Avg.
      Napier Field, AL5297921.3%
      Newville, AL4288020.4%
      Cottonwood, AL1,1588119.4%
      Slocomb, AL2,0118118.7%
      Webb, AL1,4938218.4%
      Dothan, AL70,979918.6%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Rockville, MD70,83915756.8%
      Daytona Beach, FL70,7991021.8%
      Delray Beach, FL70,77812222.3%
      Saint John, NB70,776n/a 
      Greenville, SC71,18511918.6%
      Dothan, AL70,979918.6%
      Date & Last Updated: These cost of living estimates reflect 2026 modeled data using U.S. Census housing inputs and AI-assisted city-level pricing models.