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Pelham, AL vs Rainbow City, AL

103
Pelham
Alabama
VS
+33.3%
77
Rainbow City
Alabama

The cost of living difference between Pelham, AL and Rainbow City, AL is dramatic. Rainbow City is 33.3% cheaper than Pelham, a gap that translates to thousands of dollars per year in household expenses. Pelham has a cost index of 103 while Rainbow City sits at 77, making this one of the more striking comparisons on our site. Relocating between these cities would require a serious reassessment of budget and lifestyle expectations.

On the housing front, median rent in Pelham is $1,573/month compared to $998/month in Rainbow City — a 58% difference. Home values follow the same pattern: Rainbow City is more affordable at $203,600 median vs $278,900.

Median household income in Pelham is $91,904 compared to $59,659 in Rainbow City (+54%). While Pelham is more expensive, its higher salaries more than compensate — residents there may actually end up with more disposable income. Looking at affordability, residents of Pelham spend roughly 20.5% of their income on rent, more than the 20.1% in Rainbow City.

Climate-wise, both cities share similar average temperatures (64.4°F vs 62.3°F). Pelham receives more rainfall at 56.2" per year compared to 52.2" in Rainbow City.

Income & Cost

Cost of Living Index
Pelham
103
Rainbow City
77
25% cheaper
Median Household Income
Pelham
$91,904
35% higher
Rainbow City
$59,659

Housing

Median Rent
Pelham
$1,573
Rainbow City
$998
37% cheaper
Median Home Value
Pelham
$278,900
Rainbow City
$203,600
27% cheaper
Population
Pelham
24,510
Rainbow City
10,213

Salary Equivalency Calculator

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Rent by Bedroom Size

HUD Fair Market Rent (FY 2026) — metro area average

Studio
Pelham $971
Rainbow City $810
17% cheaper
1 Bed
Pelham $1,088
Rainbow City $917
16% cheaper
2 Bed
Pelham $1,208
Rainbow City $1,050
13% cheaper
3 Bed
Pelham $1,517
Rainbow City $1,303
14% cheaper
4 Bed
Pelham $1,720
Rainbow City $1,473
14% cheaper

Everyday Prices

BLS Average Prices by metro area

Gasoline (regular)
Pelham $2.90
Rainbow City $2.90
US $3.07
🥚
Eggs (grade A, large)
Pelham $2.37
Rainbow City $2.37
US $2.50
🥛
Milk (whole)
Pelham $3.81
Rainbow City $3.81
US $4.03
🍞
Bread (white)
Pelham $1.75
Rainbow City $1.75
US $1.85
🍗
Chicken breast
Pelham $3.92
Rainbow City $3.92
US $4.14
Electricity
Pelham $0.17
Rainbow City $0.17
US $0.19

Climate

NOAA 30-year normals (1991-2020)

Avg Temp
Pelham 64.4°F
Rainbow City 62.3°F
Summer High
Pelham 91°F
Rainbow City 90°F
Winter Low
Pelham 36°F
Rainbow City 33°F
Rainfall
Pelham 56.2"
Rainbow City 52.2"
Rainy Days
Pelham 126d
Rainbow City 116d