| Index | Florence | Alabama | National |
| Cost of living | 89 | 89 | 100 |
| Groceries | 95 | 96 | 100 |
| Health care | 97 | 95 | 100 |
| Housing | 74 | 74 | 100 |
| Transportation | 98 | 95 | 100 |
| Utilities | 96 | 97 | 100 |
| Lifestyle & Entertainment | 94 | 94 | 100 |
| Household Items | 95 | 96 | 100 |
| Education & Childcare | 91 | 93 | 100 |
Getting a feel for the cost of living in Florence 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 Florence is 89, which is 11% 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.
Locals have the inside scoop on their city. So, we polled 13 residents in Florence to learn how they view the cost of living. We asked how they felt about the cost of living in their area, and if they thought that prices were increasing, decreasing or staying the same. The verdict? 54% find it reasonable with decreasing prices, but 46% think it's quite pricey, with prices that continue to rise.
Is Florence 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 Florence, the median home price is 23.1% lower than what most folks pay across the country, and monthly rent prices are 32% lower than the usual rates. Income levels in Florence come in at $59,581, which is 26.7% lower than the national average.
Healthcare: Healthcare costs and insurance premiums can fluctuate greatly based on the city or state. Access to healthcare facilities, out-of-pocket expenses for doctor\’s visits, dentist costs, medication costs and specialized care costs can all impact the cost of living. In Florence, the healthcare costs are 3.3% lower than the national average.
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 household expenses, it naturally translates into higher expenses. Similarly, a higher income tax rate can also contribute to an overall higher cost of living. In Florence, the standard sales tax rate starts at 4%, and the income tax rates commence at 2%.
Urbanization: Larger, urban centers, known for their wealth of amenities and strong employment prospects, often exhibit an elevated cost of living, primarily attributable to the heightened demand for services and residential relocation. Consequently, this scenario leads to elevated home prices and higher rental rates. In contrast, sparsely populated rural areas or regions characterized by diminished demand typically provide a more limited array of amenities and experience slower job market growth, resulting in a more affordable cost of living.
The Florence cost of living data above is designed around a U.S. average baseline of 100, allowing for easy comparisons of relative living costs. Housing incorporates U.S. Census home price and rental data, while all other figures are AI-assisted estimates that account for regional price trends, climate, transportation dynamics, and common everyday expenses. These values are best used as directional city-to-city comparisons.
| Cost of living index | |
| Groceries index | |
| Health care index | |
| Housing index | |
| Transportation index | |
| Utilities index | |
| Lifestyle index | |
| Household index | |
| Educare index |
| Median Income | Per Year | Per Month | Max Budget (28% DTI) | Max Budget (36% DTI) |
| Owners | $85,402 | $7,117 | $1,993 | $2,562 |
| Renters | $36,878 | $3,073 | $860 | $1,106 |
| State | General Sales Tax | With Max Surtax |
| Alabama | 4% | 13.5% |
| State | Income Tax (Low) | Income Tax (High) |
| Alabama | 2% | 5% |
| City | Population | Cost of Living Index | National Avg. |
| Leighton, AL | 806 | 79 | 20.6% |
| Sheffield, AL | 9,116 | 85 | 14.8% |
| Underwood-Petersville, AL | 2,778 | 86 | 14.3% |
| Tuscumbia, AL | 8,741 | 87 | 13.2% |
| Littleville, AL | 973 | 89 | 11.5% |
| Florence, AL | 41,756 | 89 | 11.0% |
| City | Population | Cost of Living Index | National Avg. |
| Timmins, ON | 41,763 | n/a | |
| Newnan, GA | 41,765 | 106 | 5.8% |
| Coram, NY | 41,733 | 133 | 32.8% |
| Danville, VA | 41,783 | 90 | 10.3% |
| Woburn, MA | 41,794 | 153 | 53.4% |
| Florence, AL | 41,756 | 89 | 11.0% |
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