Cost of Living in Memphis, AL

With a cost of living index of 76, Memphis, AL is a very affordable place to live. Living here is 24% cheaper than the national average and in line with the Alabama state average. Memphis is a small community of 27 residents.

The median household income in Memphis is $2,499, which is 97% lower than the national median of $75,149. 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 Memphis. The area sees an average annual temperature of 64°F, with summers averaging 80°F and winters around 47°F. Annual rainfall totals 60 inches spread over roughly 109 days. The mild climate is a draw for many residents and keeps utility costs moderate year-round.

Everyday prices in the Tuscaloosa, 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.