Cost of Living in Hollywood, AL

With a cost of living index of 72, Hollywood, AL is one of the most affordable cities in the country. Living here is 28% cheaper than the national average and in line with the Alabama state average. Hollywood is a small community of 939 residents.

Housing costs are the biggest factor in Hollywood's cost of living. The median monthly rent is $1,065 (19% below the US median of $1,319), and the median home value sits at $102,900 (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 Hollywood is $55,573, which is 26% lower than the national median of $75,149. Residents spend roughly 23% 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 Hollywood. The area sees an average annual temperature of 59.9°F, with summers averaging 77°F and winters around 43°F. Annual rainfall totals 55.1 inches spread over roughly 120 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.