Alabama is noted as one of the most affordable states in the country, with ten of its counties making it onto a list of the 50 cheapest counties, according to a recent report.
The report titled “where $50,000 moves the most: where America’s 50 cheapest counties live,” examined counties nationwide using data from the 2023 American Community Survey by the US Department of Commerce and the Census Bureau. Counties were ranked based on a local price parity index, which measures living costs compared to the national average, as well as local household income, housing value, and unemployment rates.
In these counties, prices for goods and services are generally 18% to 25% lower than the national average, largely due to lower housing costs and local demand. Many of these areas are rural, where less population helps keep prices down.
Franklin County: A Leader in Affordability
Out of the 50 listed counties, Alabama has ten, which is the second highest total among all the states—only Mississippi has more, with 18 counties.
Franklin County, in particular, ranks fourth in the country with a cost of living that’s estimated to be over 21% below the national average. The median home price here is just $128,000, which is more than 60% lower than the US median. Median household income stands at around $51,500.
Here’s a look at all ten Alabama counties featured on the list, including some key statistics:
- Franklin County (#4) – 21.3% below the average cost of living. Median income: $51,493. Median home value: $128,000. Unemployment: 3.6%
- Clay County (#10) – Under 20.5%. Median income: $51,852. Median home value: $144,700. Unemployment: 3.5%
- Winston County (#12) – Under 20.3%. Median income: $48,032. Median home value: $110,500. Unemployment: 4.2%
- Lamar County (#18) – Under 19.9%. Median income: $47,447. Median home value: $112,700. Unemployment: 6.4%
- Fayette County (#25) – Under 19.5%. Median income: $50,733. Median home value: $121,200. Unemployment: 9.5%
- Marion County (#28) – Under 19.5%. Median income: $50,714. Median home value: $104,300. Unemployment: 6.2%
- Randolph County (#29) – Under 19.4%. Median income: $51,551. Median home value: $184,000. Unemployment: 2.8%
- Jackson County (#37) – Under 19.2%. Median income: $49,454. Median home value: $145,800. Unemployment: 5.4%
- Dekalb County (#46) – Under 19.0%. Median income: $51,149. Median home value: $135,500. Unemployment: 4.2%
- Pickens County (#50) – Under 18.8%. Median income: $47,014. Median home value: $123,300. Unemployment: 6.5%
Understanding Alabama’s Affordability
The results align with broader data indicating that Alabama is one of the more affordable states overall, as reported by the Council on Community and Economic Research. The state’s cost of living is approximately 12-13% lower than the national average, with housing costs being nearly 30% below the average.
Even though income levels in these counties are often lower than the national median, the lower cost of living allows residents to stretch their dollars further. For households earning around $50,000, Alabama provides considerable purchasing power compared to states with higher living costs.
