Cost of Living in Hamilton, AL

With a cost of living index of 56, Hamilton, AL is one of the most affordable cities in the country. Living here is 44% cheaper than the national average and 18% below the Alabama state average of 74. Hamilton is a smaller community of 6,907 residents, where everyday costs can differ substantially from nearby larger cities.

Housing costs are the biggest factor in Hamilton's cost of living. The median monthly rent is $544 (59% below the US median of $1,319), and the median home value sits at $103,500 (66% below the national median of $304,900). At current prices, the median home costs roughly 1.9x the median household income — well within traditional affordability guidelines.

The median household income in Hamilton is $53,714, which is 29% lower than the national median of $75,149. Residents spend roughly 12% 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 Hamilton. The area sees an average annual temperature of 59.6°F, with summers averaging 76°F and winters around 43°F. Annual rainfall totals 58.7 inches spread over roughly 113 days.

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.