Bessemer, AL

Very Low · 57

Alabama · Population 25,655 · Updated March 2026

$922
Median Rent / Month
$37,844
Median Income
$129,800
Median Home Value
$919
Owner Costs / Month

Affordability

How far your income goes in Bessemer

29.2%
Rent-to-Income Ratio
Moderate
Rent takes 25-35% of median income — moderate affordability.

Tax Burden in Alabama

State-level tax rates that affect your costs

5.0%
Income Tax (Top Rate)
4.0%
Sales Tax
0.41%
Property Tax Rate

Estimated Annual Costs

$11,064
Annual Rent
$1,892
State Income Tax
$532
Property Tax (est.)

Cost of Living Overview

Bessemer is significantly cheaper than the national average, making it an attractive option for budget-conscious individuals and families. With a cost index of 57 (where 100 equals the national median), Bessemer residents can expect to pay median rent of $922/month while earning a median household income of $37,844/year.

The median home value in Bessemer, AL is $129,800, with typical monthly owner costs around $919 including mortgage, insurance, and taxes. With a rent-to-income ratio of 29.2%, Bessemer falls within the generally affordable range, though it's approaching the 30% burden threshold.

Alabama has a moderate income tax rate of 5.0%. Combined with a 4.0% sales tax rate and 0.41% effective property tax rate, the overall tax environment is a factor in the total cost of living in Bessemer.

Frequently Asked Questions

Common questions about living costs in Bessemer

What is the cost of living in Bessemer, AL?
The cost of living index in Bessemer, AL is 57 (US average = 100). Median monthly rent is $922, median household income is $37,844/year, and the median home value is $129,800.
Is Bessemer, AL affordable?
Yes, Bessemer is more affordable than the national average with a cost index of 57. The rent-to-income ratio is 29.2%—below the 30%% threshold considered affordable by HUD.
What is the average rent in Bessemer, AL?
The median gross rent in Bessemer, AL is $922 per month according to the US Census Bureau ACS 2023 data. Annual rent costs approximately $11,064.
What is the median household income in Bessemer?
The median household income in Bessemer, AL is $37,844 per year. This compares to the national median of approximately $80,000.
What are the taxes like in Alabama?
Alabama has a top income tax rate of 5.0%, a sales tax of 4.0%, and an effective property tax rate of 0.41%.