Overall 8%
Goods & Services 12%
Housing 4%
Date & Last Updated: This data reflects 2019 and was released from C2ER in January, 2020; 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.
Cost of living9289100
Goods & Services8898100
Health care8891100

Key findings

  • The cost of living in Pelham is 3% higher than the Alabama average
  • The cost of living in Pelham is 8% lower than the national average
  • Pelham housing is 4% 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 Pelham, AL Cost of Living

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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 IncomePer YearPer MonthMax Budget (28% DTI)Max Budget (36% DTI)
      The affordability of the housing market in Pelham, AL as well as the overall cost of living can be predicted by what percent of the monthly income is spent on housing related costs. This is konwn as the debt-to-income ratio (DTI). The overall rule of thumb is that no more than 28% of your gross income should be spent on the overall costs related to housing and no more than 36% of gross income on all expenses and debts. Among Pelham homeowners, the median income is $79,189. This indicates that a monthly maximum of $1,848 should be spent by homeowners on all housing related costs. Renters have a median income of $46,391. This indicates that renters would have a maximum of $1,082 for their rent related monthly costs.

      Alabama Sales Tax

      StateGeneral Sales TaxWith Max Surtax

      Alabama Income Tax

      StateIncome Tax (Low)Income Tax (High)

      Goods & Services

      ItemPelhamNational avg.Difference
      Haircut $16.33$17.496.6%
      Beauty Salon $35.00$38.178.3%
      Toothpaste $1.71$2.3226.3%
      Shampoo $0.78$1.0122.9%
      Movie $11.91$10.7211.1%
      Bowling $15.00$13.868.2%


      ItemPelhamNational avg.Difference
      Ground Beef $3.89$3.900.3%
      Fried Chicken $1.17$1.4016.2%
      Milk $1.75$1.9610.8%
      Potatoes $2.73$3.1814.2%
      Pizza $9.79$10.395.8%
      Beer $8.65$9.236.3%

      Health Care

      ItemPelhamNational avg.Difference
      Optometrist $109.00$106.342.5%
      Doctor $80.00$115.2530.6%
      Dentist $93.50$98.385.0%
      Ibuprofen $7.98$9.2613.8%
      Lipitor $457.00$466.472.0%


      ItemPelhamNational avg.Difference
      Home Price $169,600.00$184,700.008.2%
      Avg. Mortgage Payment $955.18$1,273.3225.0%
      Apartment Rent $1,005.00$949.005.9%


      ItemPelhamNational avg.Difference
      Gasoline $2.32$2.5910.6%
      Tire Balancing $48.33$48.901.2%


      ItemPelhamNational avg.Difference
      All Electricity$179.60$167.607.2%
      Phone $178.98$163.429.5%
      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.
      Brantleyville, AL1,11073-27%
      Lipscomb, AL2,43775-25%
      Brighton, AL2,86877-23%
      Wilton, AL54080-20%
      Bessemer, AL26,85680-20%
      Pelham, AL22,59692-8%

      Cities with similar population

      City, StatePopulationCost of Living IndexNational Avg.
      Morrisville, NC22,6001099%
      Wadsworth, OH22,57895-5%
      Pottstown, PA22,61989-11%
      Anthem, AZ22,57111818%
      Arnold, MD22,62513636%
      Pelham, AL22,59692-8%
      Source: The Pelham, AL cost of living data displayed above is derived from the Council for Community and Economic Research (C2ER) for 2019.