Cost of Living in Madrid, AL

With a cost of living index of 66, Madrid, AL is one of the most affordable cities in the country. Living here is 34% cheaper than the national average and 8% below the Alabama state average of 74. Madrid is a small community of 253 residents.

Housing costs are the biggest factor in Madrid's cost of living. The median monthly rent is $825 (37% below the US median of $1,319), and the median home value sits at $129,500 (58% below the national median of $304,900). At current prices, the median home costs roughly 3.3x the median household income — a moderately affordable ratio by today's standards.

The median household income in Madrid is $38,750, which is 48% lower than the national median of $75,149. Residents spend roughly 26% of household income on rent. This is near the 30% threshold that financial experts generally consider the upper limit of affordability. 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 Madrid. The area sees an average annual temperature of 68.3°F, with summers averaging 82°F and winters around 54°F. Annual rainfall totals 51.1 inches spread over roughly 119 days. The mild climate is a draw for many residents and keeps utility costs moderate year-round.

Everyday prices in the Dothan, 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.