14 Most Affordable Places to Live in Alabama in 2025

With its Southern comfort food, Gulf Coast beaches, historical significance, music heritage, and welcoming communities, there are plenty of reasons to live in Alabama. If you’re considering moving to Alabama then chances are you also have a budget you’re hoping to stay under in your home or apartment search. When it comes to buying a home in Alabama the median home sale price is $288,900. 

If that price is out of your budget, don’t worry, we’ve got options to help you find a home. Redfin has collected 14 of the most affordable places to live in Alabama. And the best part is that they all have a median home sale price under $288,900. From Montgomery to Birmingham, let’s jump in and see what cities are on the list.

#1: Gadsden

Median home price: $113,500
Average sale price per square foot: $78 
Average rent for a 1-bedroom apartment: $700 
Median household income: $35,776 
Nearest major metro: Birmingham (60 miles)
Gadsden, AL homes for sale
Gadsden, AL apartments for rent

With a median home sale price of $113,500, Gadsden is the most affordable place to live in Alabama. About 60 miles northeast of Birmingham, the nearest major metro, Gadsden is home to roughly 33,900 people. If you’re considering moving to this area make sure to explore Noccalula Falls Park, golf at one of the courses, or explore the downtown Gadsden area.

#2: Bessemer

Median home price: $164,500
Average sale price per square foot: $103
Median household income: $49,989
Nearest major metro: Birmingham (15 miles)
Bessemer, AL homes for sale
Bessemer, AL apartments for rent

Second on our list is Bessemer, a popular Birmingham suburb located just 15 miles southeast of the city. With a population close to 26,000, there’s still plenty to do in this town. Plan to visit Alabama Adventure & Splash Adventure during the sunny summer months and check out the downtown area.

#3: Montgomery

Median home price: $193,000
Average sale price per square foot: $104
Average rent for a 1-bedroom apartment: $969
Median household income: $49,989
Montgomery, AL homes for sale
Montgomery, AL apartments for rent

Coming in as the third most affordable place to live in Alabama is Montgomery. When living in this city of 200,600 people, you can visit the Alabama State Capitol building and explore Montgomery Zoo & Mann Wildlife Learning Museum. Discover some of the other historical museums located throughout Montgomery like the Rosa Parks Museum, The Legacy Museum, and the Freedom Rides Museum.

#4: Mobile

Median home price: $210,000
Average sale price per square foot: $122
Average rent for a 1-bedroom apartment: $904
Median household income: $48,524
Mobile, AL homes for sale
Mobile, AL apartments for rent

Home to about 182,500 residents, Mobile takes the fourth spot. Located on Alabama’s Gulf Coast, there are plenty of stunning waterfront views. Mobile has a lot to explore, from museums like USS ALABAMA Battleship Memorial Park, the Mobile Carnival Museum, and the GulfQuest National Maritime Museum of the Gulf of Mexico to parks like Cooper Riverside Park and the Mobile Botanical Gardens. 

#5: Birmingham

Median home price: $213,250
Average sale price per square foot: $120
Average rent for a 1-bedroom apartment: $1,724
Median household income: $39,403
Birmingham, AL homes for sale
Birmingham, AL apartments for rent

About 200,700 people live in Birmingham. The median home sale price is $213,250 which is about $75K less than the median home sale price in Alabama. If you find yourself moving here, make sure to visit museums like Birmingham Civil Rights Institute and Birmingham Museum of Art and explore the gorgeous Birmingham Botanical Gardens. You can also take in the scenic views at Vulcan Park and Museum or stroll along the trails at Railroad Park. 

>> Read: Popular Birmingham, AL, Neighborhoods to Live in 

#6: Decatur

Median home price: $229,100
Average sale price per square foot: $144
Average rent for a 1-bedroom apartment: $775
Median household income: $52,539
Nearest major metro: Huntsville (25 miles)
Decatur, AL homes for sale
Decatur, AL apartments for rent

If you’ve lived in Alabama for a while, it’s likely you know of Decatur. About 57,900 people reside in Decatur. Be sure to explore the expansive Wheeler National Wildlife Refuge, visit museums like Old State Bank and the Cook Museum of Natural Science, or check out the downtown area once living in Decatur.

#7: Dothan

Median home price: $245,000
Average sale price per square foot: $132
Average rent for a 1-bedroom apartment: $954
Median household income: $53,704
Dothan, AL homes for sale
Dothan, AL apartments for rent

Another great place to consider living in Alabama is Dothan where the population is about 71,200. Popular things to do in Dothan include exploring the Wiregrass Museum of Art, seeing a show at Dothan Civic Center Arena, enjoying a meal at one of the local restaurants or cafes, and hiking along the trails at Forever Wild Trails.

#8: Tuscaloosa

Median home price: $245,450
Average sale price per square foot: $177
Average rent for a 1-bedroom apartment: $1,000
Median household income: $44,880
Nearest major metro: Birmingham (60 miles)
Tuscaloosa, AL homes for sale
Tuscaloosa, AL apartments for rent

Next on our list of affordable places to live in Alabama is Tuscaloosa. With a population of close to 99,600, living in Tuscaloosa is a great option for those looking for a mid-sized city to call home. If you find yourself moving to this city make sure to spend the day at Lake Tuscaloosa, watch a show at Tuscaloosa Amphitheater, walk along the Tuscaloosa Riverwalk, or explore the museums and campus grounds at the University of Alabama.

#9: Enterprise

Median home price: $247,500
Average sale price per square foot: $135
Average rent for a 1-bedroom apartment: $625
Median household income: $49,989
Nearest major metro: Dothan (30 miles)
Enterprise, AL homes for sale
Enterprise, AL apartments for rent

Another great affordable city to consider moving to is Enterprise. With 30,000 residents, moving to this affordable city gives you the perks of city-life without living in a major metropolitan area. Living in Enterprise, you can spend the afternoon at Johnny Henderson Park, and check out the downtown area.

#10: Florence

Median home price: $253,750
Average sale price per square foot: $138
Average rent for a 1-bedroom apartment: $650
Median household income: $47,048
Nearest major metro: Huntsville (73 miles)
Florence, AL homes for sale
Florence, AL apartments for rent

Located along the Tennessee River is the charming city of Florence. With about 42,400 residents, this area has a small-town feeling. The city is home to a variety of landmarks like the Florence Indian Mound and Museum, the Old Railroad Bridge, and Pope’s Tavern Museum. You can also explore the gorgeous green spaces like McFarland Park, Shoal Creek Preserve, and Rock Springs Nature Trail, making it an awesome area for those who enjoy the outdoors. It’s also one of the best lake towns in Alabama.

#11: Phenix City

Median home price: $254,000
Average sale price per square foot: $137
Average rent for a 1-bedroom apartment: $932
Median household income: $43,296
Nearest major metro: Columbus, GA (5 miles)
Phenix City, AL homes for sale
Phenix City, AL apartments for rent

The eleventh city on our list is Phenix City, located along the Alabama-Georgia border. This city has a population of 38,800 and you can grab a bite at one of the local restaurants, visit one of the parks like Moon Lake, or drive over to nearby Columbus, GA. There’s always something to check out while living in Phenix City.

#12: Alabaster

Median home price: $267,000
Average sale price per square foot: $160
Average rent for a 1-bedroom apartment: $825
Median household income: $90,163
Nearest major metro: Birmingham (24 miles)
Alabaster, AL homes for sale
Alabaster, AL apartments for rent

Located about 24 miles south of Birmingham is Alabaster, home to about 34,1000 residents. With home prices around $267,000, there are plenty of affordable options in Alabaster. This town is a great place to live if you want easy access to Alabama’s nature. Alabaster is close to popular spots like Ebenezer Swamp Ecological Preserve, Falling Rock Falls Trail Head, Buck Creek Park, and Oak Mountain State Park. You can also spend time exploring the city where you’ll find wineries, libraries, local restaurants, and arcades. 

#13: Daphne

Median home price: $276,000
Average sale price per square foot: $173
Average rent for a 1-bedroom apartment: $1,196
Median household income: $86,479
Nearest major metro: Mobile (13 miles)
Daphne, AL homes for sale
Daphne, AL apartments for rent

On the eastern shores of Mobile Bay is the next most affordable place, Daphne. This Mobile suburb offers plenty of waterfront parks like Bayfront Park, Village Point Park Preserve, May Day Park, and McMillian Bluff. Olde Towne Daphne has lots of local shops, cafes, and restaurants to check out, as well as a local history museum, the Daphne History Museum. With about 30,000 residents, Daphne is a great place to call home. 

#14: Prattville

Median home price: $278,174
Average sale price per square foot: $142
Average rent for a 1-bedroom apartment: $890
Median household income: $79,396
Nearest major metro: Montgomery (13 miles)
Prattville, AL homes for sale
Prattville, AL apartments for rent

Rounding out our list of most affordable places to live in Alabama is Prattville. This charming town is home to about 39,300 residents and is a suburb of Montgomery. Pratville’s downtown area offers a picturesque look into the town’s history. You can check out spots like the Creekwalk Garden, Main Street, the Daniel Pratt Historic District, and the Autauga County Heritage Center.

Methodology: All cities must have over 25,000 residents per the US Census and have a median home sale price under the average median home sale price in Alabama. Median home sale price and median sale price per square foot from the Redfin Data Center during April 2025. Average rental data from Rent.com April 2025. Population and median household income data sourced from the United States Census Bureau.