Cost of Living in Arab, AL

With a cost of living index of 69, Arab, AL is one of the most affordable cities in the country. Living here is 31% cheaper than the national average and 5% below the Alabama state average of 74. Arab is a smaller community of 8,573 residents, where everyday costs can differ substantially from nearby larger cities.

Housing costs are the biggest factor in Arab's cost of living. The median monthly rent is $697 (47% below the US median of $1,319), and the median home value sits at $196,700 (35% below the national median of $304,900). At current prices, the median home costs roughly 3.2x the median household income — a moderately affordable ratio by today's standards.

The median household income in Arab is $60,985, which is 19% lower than the national median of $75,149. Residents spend roughly 14% of household income on rent. This is a comfortable ratio, well below the 30% threshold that financial experts recommend as a maximum. Lower incomes here are balanced by the significantly lower cost of living, stretching each dollar further.

Climate is another factor for anyone considering a move to Arab. The area sees an average annual temperature of 59.9°F, with summers averaging 77°F and winters around 43°F. Annual rainfall totals 58.7 inches spread over roughly 116 days.

Everyday prices in the Birmingham, AL (Metropolitan Statistical Area) metro area are generally below the national average. Out of 6 common items tracked by the Bureau of Labor Statistics, 6 are priced lower than the US average. These real-world prices — from groceries to electricity — add up and should be factored into any cost of living comparison.

Data sources: US Census Bureau (ACS 2023), Zillow Home Values, HUD Fair Market Rents, BEA Regional Price Parities, BLS Average Prices, and NOAA Climate Normals. Updated monthly.